▶ Payments to be made two weeks earlier and before the start of the national holidays, alleviating financial burden of over 690 partnering companies
▶ Shows the company’s effort to support strengthening of partner’s ESG management
South Korea, September 24, 2023 – The three construction equipment companies of HD Hyundai continues its effort to achieve coexistence in management as it plans to complete payments for material costs to partners before the national Korean holidays starting next week.
HD Hyundai XiteSolution, HD Hyundai Construction Equipment, HD Hyundai Infracore shared on Sunday, Sep. 24th, that they will be paying material costs worth KRW 132.7 billion to its partners before Chuseok, also referred to as Korean Thanksgiving, which is earlier than scheduled.
Payments will be made to 690 small-to-medium, or medium sized partnering companies that provide raw materials, parts, consumable to the three construction equipment companies of HD Hyundai.
The three construction equipment companies of HD Hyundai decided to pay material costs all at once on Sep. 27th, which is 10 days or 2 weeks earlier each than its regular payment schedule and also before the national holidays, to relieve financial burden its partners normally experience right before the long holiday season.
A representative of HD Hyundai XiteSolution mentioned, "Succeeding our previous efforts this Lunar New Year, we decided to once again help our partners with any liquidity issues they may have by making early payments,” and continued, "We will continue our efforts to find ways to provide various supportive measures that can help grow together with our partners.”
Meanwhile, the three construction equipment companies of HD Hyundai are supporting its partners from different angles for better competitiveness in the market and to strengthen competence in ESG management.
In particular, HD Hyundai XiteSolution, HD Hyundai Construction Equipment, HD Hyundai Infracore have been taking part in a pilot project named the ‘payment sliding system for delivered goods’ since September 2022, which automatically reflects the unit price of changing raw material costs. The three companies are also working on the ‘ESG Management Support Project for Supply Chains’ which supports partners having difficulty proceeding with ESG management.
They are also supporting stable governance of its partners with customized policies such as the operation of a mutual growth fund, advanced and middle payment options, and cash or promissory notes when paying for material costs.
<EOD>
■ Photo Description: CIs of HD Hyundai’s three construction equipment businesses