The plan aims to establish fair trading practices while helping smaller suppliers stabilize their operations through support in financing, productivity, safety and technology, and to strengthen competitiveness across the entire supply chain.
HD Hyundai said on Sept. 10 that it signed a "joint agreement for win-win cooperation" with first-, second- and third-tier suppliers at HD Hyundai Heavy Industries' shipyard in Ulsan. About 100 people attended the event, including Fair Trade Commission Chairman Joo Byung-ki, HD Hyundai Heavy Industries CEO Keum Seok-ho, HD Hyundai Samho CEO Kim Jae-eul, HD Hyundai Marine Solution CEO Kim Sung-joon, HD Hyundai Electric CEO Kim Young-ki, HD Hyundai Construction Equipment management division head Kim Jong-chul and supplier representatives.
HD Hyundai expects about 7,500 suppliers to receive tangible benefits from the agreement.
Five affiliates, including HD Hyundai Heavy Industries, will pay first- and second-tier suppliers entirely in cash or cash equivalents. The company will also encourage first- and second-tier suppliers to use cash or cash-equivalent payment methods when paying second- and third-tier partners, offering incentives for doing so, with the goal of improving payment terms for all suppliers.
HD Hyundai will also run financing support programs and provide training and equipment to improve workplace conditions and strengthen productivity and safety. It will protect suppliers' technology assets through measures such as the technology escrow system and help bolster their cybersecurity capabilities.
Suppliers, for their part, will actively participate in carrying out the agreement by improving payment terms and expanding win-win payment schemes.
"Suppliers are partners for sustainable growth who help cultivate a shared ecosystem," an HD Hyundai official said. "We plan to spare no effort in providing various forms of support for win-win cooperation with our suppliers."
