Shinsegae Group said on the 31st that it will make early payments to small and mid-sized suppliers to ease their cash burden ahead of the Chuseok holiday.
The group said three affiliates — E-Mart (139480.KS), Shinsegae Department Store and SSG.com — will pay suppliers a combined 1.95 trillion won ($1.4 billion). The total combines payments brought forward by as much as 12 days and regular payments due under existing contract terms.
Through the move, the group said it aims to help most of its suppliers manage their cash flow smoothly and reduce their burden during a period when funding needs are concentrated.
Shinsegae Group makes regular supplier payments three to four times a month even outside holiday periods to support stable cash management at partner firms. E-Mart and Shinsegae Department Store have also run a shared-growth fund since 2011 that allows suppliers to borrow at lower interest rates.
