POSCO steps up its efforts to support struggling SMEs
News Classification:POSCO steps up its efforts to support struggling SMEs
Monday, 06 Sep 2010
POSCO has stepped up its efforts to support struggling small and medium sized enterprises by pursuing a win-win management strategy initiated by the government.
To that end, POSCO announced that the company will make an intermediate payment in its purchases of equipments from SMEs from this month in order to improve their cash flow.
It said that the new scheme applies to any contract worth more than KRW 100 million, with more than 180 days until the payment deadline remaining. Under the scheme, subcontractors can get cash in three installments deposits (20%), middle payment (30%) and the remainder (50%).
Based on last year’s record, POSCO would be required to make a middle payment worth up to KRW 747 billion this year and pay KRW 220 billion in advance.
Mr Chung Joon yang chairman of POSCO said that "POSCO will continue to make efforts to promote a win-win strategy with smaller subsidiaries in the future."
