[E-Daily JAEMIN SONG Reporter] Ahead of Chuseok, LG Corp. will pay 600 billion won in supplier invoices earlier than scheduled to ease the financial burden on its suppliers. The company will also operate a separate financial support program and a mutual growth payment system, expanding its support to include not only first-tier suppliers but also second- and third-tier suppliers.

LG Corp. announced on the 14th that eight of its affiliates—including LGELECTRONICS, LG Innotek, LGCHEM, and LG Energy Solution—will pay suppliers up to 13 days earlier than the originally scheduled payment dates.

LG H&H, LG Uplus, LG CNS, and D&O are also participating in this early payment initiative. This measure is intended to help partners—who face a temporary increase in funding needs ahead of Chuseok, such as payments for raw materials and employee salaries and bonuses—manage their funds smoothly.

Separate from the early payment of supplier invoices, the group is also operating a financial support program worth approximately 1.2 trillion won. Seven affiliates—LGELECTRONICS, LG Innotek, LGCHEM, LG Energy Solution, LG H&H, LG Uplus, and LG CNS—are supporting suppliers’ financing through the Shared Growth Fund and direct loans.

Through these programs, partner companies can secure loans at interest rates lower than market rates or raise necessary funds interest-free. The aim is to support the liquidity of partner companies facing increased financial burdens due to rising raw material prices and labor costs, and to help ensure their medium- to long-term business stability.

LG Corp. is also expanding related programs to ensure that the benefits of this support extend beyond first-tier suppliers to second- and third-tier suppliers as well. Last July, LG Corp. signed the “LG-1st, 2nd, and 3rd-Tier Supplier Mutual Growth Agreement” with the Fair Trade Commission and agreed to allocate at least 10% of the Mutual Growth Fund’s operating budget to second-tier and lower-tier suppliers.

The company also plans to raise the “trickle-down rate” for mutual growth payments to over 10 percent—the highest level in the country. Mutual growth payments refer to a system in which first-tier suppliers pass on the payment received from a large corporation to second-tier and lower-tier suppliers using the same payment method. The trickle-down rate refers to the proportion of the payment made to first-tier suppliers that ultimately reaches second-tier suppliers.

LG Corp. intends to expand both the Shared Growth Fund and the “win-win payment” system to ensure that suppliers who do not transact directly with large corporations can also benefit from financial support. The company aims to strengthen the foundation for shared growth by improving cash flow throughout the entire supplier supply chain.

In celebration of Chuseok, the company will also carry out community outreach activities. Affiliates such as LG Display, LGCHEM, LG Energy Solution, LG H&H, and LG Uplus plan to deliver daily necessities to vulnerable groups in communities near their business sites and organize volunteer activities for their employees.