Samsung Provides Immediate Support to Its Partners in Trouble Due to the COVID-19 Outbreak
South Korea

Samsung has raised a fund sizing up to KRW 2.6 trillion to help stabilizing the business of its partners that have been facing difficulties as COVID-19 suspends their operations and hampers the delivery of parts.

The contributors to the fund include Samsung Electronics, Samsung Display, Samsung Electro-Mechanics, Samsung SDI, Samsung SDS, and C&T Corporation.

Liaising with its other fund programs such as Win-win Fund and Financial Support Fund for the Payment of Purchased Items, Samsung plans to use its working fund worth KRW 1 trillion to give no-interest or low-interest loans to its partners and make advance payments for their purchased items estimated to be worth KRW 1.6 trillion in February.

In particular, Samsung Electronics will cover actual logistics costs when its partners choose air freight for an urgent supply of materials.

If its partners diversify their purchase channel for delivery of raw and subsidiary materials, Samsung Electronics simplifies the approval process and shortens the processing time while providing consultations to them.

Besides, Samsung Electronics shares customs duty information with logistics service provides to facilitate its partners’ process of delivering materials. It also strives to encourage them to take detours or find alternative delivery channels apart from the existing ones.

Samsung Electronics further shares China-related information including the Chinese government’s guidelines and the current status of logistics and customs clearance in China. It also distributes the behavior guidelines for the prevention and management of infectious diseases that encompass tips for maintaining health, taking preventive measures, and preventing the spread.

To its partners in China, it provides face masks, hand sanitizers, and thermometers as well.

Samsung Electronics also runs a “partner support center” to listen to the voice of its partners in trouble.

Samsung will continue to monitor the situation and provide support to its partners as necessary.

[ Note ]

□ Win-win Fund

Starting with Samsung Electronics in 2010, Samsung Group has been offering a grant program called Win-win Fund. Win-win Fund aims to give loans with lower interest rates to Samsung’s partners seeking funds for technological development, facility investment, and operating expenses. Samsung’s subsidiaries including Samsung Electronics, Samsung Display, Samsung Electro-Mechanics, Samsung SDI, Samsung SDS, Samsung Heavy Industries, and C&T Corporation have raised this fund sizing up to KRW 2.4 trillion for their primary, secondary, and tertiary partners.

□ Financial Support Fund for the Payment of Purchased Items

Since 2017, Samsung Electronics and Samsung Display have been offering a 1-trillion-won fund for the payment of purchased items. Financial Support Fund for the Payment of Purchased Items is a no-interest loan program available for their primary and secondary partners seeking funds to pay their subcontractors for purchased items in cash within 30 days. By giving loans to their primary and secondary partners without interests for up to 2 years, they have been lifting the financial burden of their partners.

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