South Korean company LG Innotek (KRX: 011070), a core materials and components manufacturer specializing in advanced substrates and package substrates for semiconductor packaging, as well as electronic components for mobile and automotive applications, has announced that it will make early payments to suppliers ahead of the Chuseok holiday, joining seven other LG Group affiliates in a move to ease financial pressure on partners.

The companies, including LG Electronics, LG Chem, LG Energy Solution, LG Uplus, LG Household & Health Care, LG CNS, and D&O, will pay a total of KRW 980 billion (approx. USD 702 million or CNY 5 billion) up to 14 days earlier than scheduled. The initiative is designed to help suppliers secure liquidity during the holiday period, when demand for funds typically spikes due to raw material purchases and employee bonuses.

In addition, LG Innotek operates a KRW 1.4 trillion (approx. USD 1 billion) co-prosperity fund and financing program, enabling suppliers to access no-interest or low-interest loans to strengthen competitiveness and support a shift toward sustainable business models. LG Group also promotes a "shared growth payment system," ensuring suppliers can cash out invoices early at low financial cost, backed by LG's credit rating.

According to the Korea Fair Trade Commission, LG leads among 88 conglomerates in prompt payment, settling 81.2% of subcontracting fees within 10 days.

Beyond financial support, LG affiliates are also carrying out community initiatives for Chuseok, including donations of daily necessities and volunteer activities in regions where their facilities are based.

LG Group remains the largest foreign investor in Haiphong, Vietnam, with cumulative investments of about $8.24 billion across affiliates including LG Display, LG Innotek, LG Chem, and LG CNS. These operations account for 43% of Haiphong's total exports.