April 20, 2024
Automobiles
Hyundai Motor Group to fund W50b for parts suppliers
[THE INVESTOR] Hyundai Motor and its sister company Kia Motors will create a 50 billion won (US$44.4 million) fund to support the operations of more than 5,000 second- and third-tier parts suppliers across the country.
The plan is the latest in the automakers’ efforts to strengthen partnership with suppliers.
When combined with a previous plan to support first-tier part makers, the size of the fund will be expanded to 730 billion won, the company said.
The fund will be spent on improving the management and competitiveness of suppliers, supporting their entry into global markets and encouraging them to hire more.
The announcement was made to support smaller parts makers along with the government’s plan to increase the minimum wage. Small businesses have expressed concerns that the wage hike might impose a greater financial burden on them.
The fund will be used to lend money to suppliers on low interest rates and also to build a business and training center for suppliers to improve their skills.
By Cho Chung-un/The Korea Herald (christory@heraldcorp.com)
The plan is the latest in the automakers’ efforts to strengthen partnership with suppliers.
When combined with a previous plan to support first-tier part makers, the size of the fund will be expanded to 730 billion won, the company said.
The fund will be spent on improving the management and competitiveness of suppliers, supporting their entry into global markets and encouraging them to hire more.
The announcement was made to support smaller parts makers along with the government’s plan to increase the minimum wage. Small businesses have expressed concerns that the wage hike might impose a greater financial burden on them.
The fund will be used to lend money to suppliers on low interest rates and also to build a business and training center for suppliers to improve their skills.
By Cho Chung-un/The Korea Herald (christory@heraldcorp.com)
