Kwak Yeon-soo is a digital editor at The Korea Times creating, editing and curating digital content for the newspaper’s website, mobile app and social media. She previously covered a diverse array of cultural, political and business topics.
POSCO unveils early payment scheme for suppliers
By Kwak Yeon-soo
POSCO logo
By Kwak Yeon-soo
POSCO has announced an early payment scheme covering research and development costs of its suppliers, in a bid to promote the value of mutual growth, the company said Thursday.
So far, the steelmaker has been paying R&D costs in advance for suppliers only when requested. The new program will pay 20 percent of the cost at the start of the project, of which materials exceed 100 million won ($83,955), and the remainder after the project.
“The company has decided to launch this program because we know suppliers have a hard time getting approved for a loan even with our contracts,” a POSCO official said.
Providing early payment for funds will ease the financial burden on partner companies, whereas POSCO will be able to secure a stable supply of steel materials from its suppliers.