Hyundai Motor Group Cuts Supplier Payment Period from 60 to 10 Days to Support Management Stability

Signing a Win-Win Agreement with the Fair Trade Commission and First- and Second-Tier Suppliers
Improving Payment Terms and Expanding the Win-Win Payment System

Hyundai Motor Group is strengthening win-win cooperation within its supply chain to enhance competitiveness in future mobility. The group plans to establish fair trade practices and support management stability for its partners, aiming to raise competitiveness together.

Hyundai Motor Group held a "Win-Win Cooperation Agreement Signing Ceremony" on the 7th at the DoubleTree Hotel in Pangyo, Seongnam-si, Gyeonggi-do, establishing a cooperative foundation for the future mobility ecosystem together with the Fair Trade Commission and first and second-tier suppliers, and expanding win-win cooperation. Attendees, including Sung Kwanghyun, President of Planning and Coordination at Hyundai Motor Group (third from the left in the front row), and Byungki Joo, Chairman of the Fair Trade Commission (fourth from the left in the front row), pose for a commemorative photo. Hyundai Motor Group

On July 7, Hyundai Motor Group announced that it held the "Hyundai Motor Group Win-Win Cooperation Agreement Signing Ceremony" at the DoubleTree Hotel in Pangyo, Seongnam City, Gyeonggi Province. At the event, the group signed an agreement with the Korea Fair Trade Commission and first- and second-tier partners to lay the foundation for cooperation in the future mobility ecosystem and expand win-win collaboration. Attendees included Byeonggi Joo, Chairman of the Korea Fair Trade Commission, and Kanghyun Seo, President in charge of Planning and Coordination at Hyundai Motor Group, along with other officials.

Representatives from 12 group affiliates—including Hyundai Motor, Kia, Hyundai Mobis, Hyundai Steel, Hyundai Engineering & Construction, Hyundai Rotem, Hyundai Engineering, Hyundai Transys, Hyundai Wia, Hyundai AutoEver, Hyundai Kefico, and Innocean—as well as representatives from more than 150 first- and second-tier partner companies, were also present.

Hyundai Motor Group will improve payment terms to establish a stable management foundation across the entire supply chain. The group plans to reduce the average payment period to within 10 days—significantly shorter than the legal deadline of 60 days—to ease partners’ financial burdens and enhance management stability. In addition, education, monitoring, and incentives will be provided to help ensure that first-tier partners also shorten the payment period for their own second-tier partners.

To support stable payment collection within the supply chain, Hyundai Motor Group plans to expand the use of the win-win payment system. This payment system operates based on the credit of the top-tier purchasing company, enabling first-, second-, and third-tier partners to quickly convert their supply payments into cash in sequence. Second- and third-tier partners can also secure funds at interest rates comparable to those offered to large corporations, reducing financial costs and allowing them to cash out supply payments more quickly.

Furthermore, the group will evaluate first-tier partners' use of the win-win payment system and link it to the incentive program to encourage adoption throughout second- and third-tier partners as well.

The Korea Fair Trade Commission will provide incentives to companies implementing the agreement and will actively support the successful execution of the agreement by listening to any difficulties partners may encounter due to the improved payment terms.

Group affiliates will provide a range of support to their partners—including education, technology, and financial assistance—to help them grow as partners in the future mobility ecosystem.

Chairman Joo stated, "Innovation in the future mobility industry can be sustained more robustly through a healthy structure of 'collaboration' and win-win cooperation with partners. Today, as Hyundai Motor Group takes responsibility and actively pursues win-win cooperation with its partners, marks a starting point for our economy's transition to an advanced economic system."

President Seo said, "The competitiveness of our partners is directly tied to Hyundai Motor Group’s own competitiveness, and only if the entire supply chain is healthy can we all survive in the global market. We will mobilize the full capabilities of the group to ensure that no partner is left behind in the transition to future mobility centered on electrification, autonomous driving, robotics, and software."

This content was produced with the assistance of AI translation services.