Samsung is supporting suppliersSamsung companies are committing 2.6 trillion won ($2.2 billion) of support to subcontractors as the coronavirus threatens supply chains and disrupts production.
The country’s largest chaebol announced Sunday that Samsung Electronics, Samsung Display and Samsung Electro-Mechanics are providing 1 trillion won in no- or low-interest loans to suppliers. The three companies are also paying 1.6 trillion won early to subcontractors, remitting funds scheduled for transfer in March this month.
Samsung said it is closely monitoring the situation on the coronavirus outbreak and its impact on the suppliers and will provide additional support as needed.
Samsung Electronics will provide financial support for companies using air freight for emergency parts deliveries. The electronics company is also cutting approval times and simplifying processes for raw materials shipments from elsewhere while providing consulting services.
Since the outbreak started late last year, Korean companies have been facing troubles receiving parts and raw materials from China, as many factories have had to shut production. The Chinese government extended holidays to control the spread of the virus.
As of Sunday afternoon, the virus has killed more than 801 people globally and reached more than 20 countries. Korea has reported 27 confirmed coronavirus cases.
Analysts have commented that the outbreak will weaken consumer sentiment and could disrupt global production and supply chains.
To minimize the impact of the outbreak on its businesses, Hyundai Motor Group announced last week that it is committing 1 trillion won to partner companies.
The largest automaker group in Korea by sales is providing no-interest loans and making early payments to and additional investments in 350 small- and medium-sized auto parts suppliers in Korea to support their operations.
BY KO JUN-TAE [firstname.lastname@example.org]