Hyundai-Kia signs fair trade pact with suppliers
By Kim Yoo-chul Staff reporter The Hyundai-Kia Automotive Group has inked a fair trade pact with its 2,700 domestic parts suppliers, a move seen as improving the quality of its finished products. Under the pact, the group will run a low-interest loans program to help them stabilize financial soundness for effective management, while the automaker will pay promptly for key components, Hyundai said in a press release, Tuesday. The company also added it will expand what it calls its "partnership programs" to second- and third-tier suppliers to give a steady uprising momentum to sustain their businesses. To make the program effective, Hyundai-Kia is planning to monitor payment conditions on a regular basis. "Maintaining a healthy partnership with suppliers has emerged as a top corporate concern as the group is expanding globally. Quality in products is everything," a spokesman for the automotive group said. The group will increase its internal budget for suppliers to 82 billion won ($78 million) from 58 billion won. It has set up a 100 billion won loan program to help