• May 20, 2024

KT&G Implements Early Settlement Payments

 KT&G Implements Early Settlement Payments

Image: mnimage

Image: mnimage

KT&G is implementing early cash payments of settlement amounts to small and medium-sized partner companies to alleviate their burdens and strengthen cooperative management ahead of the Lunar New Year.

Among the partner companies that supply raw materials, components and consumables, KT&G is expediting the payment of a total of KRW664 billion to 41 companies more than a month earlier than the regular payment date.

To ease the financial burden on small and medium-sized partner companies, which face increased capital demands before major holidays such as Lunar New Year and Chuseok each year, KT&G has been executing early payments of settlement amounts. Last Chuseok, they made advance payments totaling KRW917 billion ($497.5 million) to support the liquidity of partner companies.

Furthermore, KT&G is actively participating in the “Settlement Amount Linked Company” program, which reflects the increase in raw material prices in supplier payments, reducing the burden on small and medium-sized partner companies. This initiative aims to establish a cooperative trading culture and lead the way in the development of a fair market economy.

In addition to these efforts, KT&G is operating various support systems for mutual growth, such as monthly full cash payments of settlement amounts to alleviate financial difficulties for partner companies.

“Amidst ongoing global inflation and interest rate hikes, we decided to expedite the payment of settlement amounts to partner companies facing high capital demand ahead of the Lunar New Year,” said a KT&G representative in a statement. “We will continue to explore various support measures to realize the values of mutual growth with partners and enhance sustainability across the entire value chain.”