LG Electronics has announced that it will expand its support for the Win-Win Cooperative Fund to third party partners from this year. Win-Win Co-operative Fund has been raising 200 billion won since 2010 with IBK and the Korea Development Bank.
According to a report, the Win-Win Cooperation Fund was supported by primary and secondary partners who signed a fair trade agreement with LG Electronics until last year.
Starting this year, third-tier suppliers can also receive loans using the Win-Win Cooperation Fund when they need funds. If a partner who is suffering from COVID 19 applies for a loan for funds, it will be the top priority.
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According to LG Electronics, there are over 1,000 suppliers that can use the win-win cooperation fund, which is more than 20% higher than last year. The supported limit is 1 billion won for primary suppliers and 500 million won for secondary and tertiary partners.
In the case of a ‘cooperation association’ member companies formed for close exchange and mutual development by partner companies, they can apply for up to 2 billion won.
In addition, various support measures have been prepared to help partners. Next month, LG Electronics will provide an interest-free fund of 40 billion won a month ahead of last year. Interest-free funds are used to build automation solutions, improve old facilities, and develop new technologies to increase the productivity of partners.
A win-win payment system is also operated to secure liquidity early. This is a method in which the first, second, and third-tier suppliers receive cash early on the payment date of the delivery price based on the credit of a large company.
According to LG Electronics, the amount paid by the primary partner to the secondary partner through the win-win payment system was about 530 billion won last year.
