KT&G Takes Steps to Support Small Businesses and Enhance Coexistence

Business by 2FIRSTS.ai
Jan.26.2024
KT&G Takes Steps to Support Small Businesses and Enhance Coexistence
South Korean tobacco company KT&G announced early payment of outstanding debts to alleviate financial pressure on small and medium-sized partners.

According to a report by South Korean media outlet Hankyung on January 25, the Korean tobacco company KT&G has announced that it will make early payments of accounts payable in order to alleviate financial pressures on its small and medium-sized business partners and strengthen cooperative operations.

 

KT&G has pledged to pay a total of KRW 66.4 billion (approximately CNY 377 million) in outstanding payments to 41 cooperation partners providing raw materials and consumables, more than a month ahead of the upcoming New Year holiday.

 

Every year, KT&G makes early payments of these funds before the New Year and Mid-Autumn Festival, aiming to assist its partners in easing financial pressures. During the previous Mid-Autumn Festival, KT&G also made advance payments of KRW 91.7 billion in accounts payable to support its partners in ensuring liquidity.

 

In addition, KT&G joined the "Raw Material Connection Enterprise" system in November last year, which supports reflecting a portion of the increase in raw material prices in the supply payments, aiming to alleviate the burden on small and medium-sized business partners.

 

A representative from KT&G stated, "We will continue to seek various measures to achieve value growth with our partners and enhance sustainability along the value chain.

 

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