Hyundai Motor Group, whose flagships are Korea’s top automaker Hyundai Motor Co. and No.2 Kia Motors Corp., pledged Tuesday to provide over $400 million in support for its suppliers this year.
The group’s fresh commitment came at an annual ceremony where the group and its suppliers pledge to engage in fair trade practices.
This year’s event was also attended by 1,585 suppliers of Hyundai Motor and Kia Motors.
Hyundai Motor Co. vice chairman Yoon Yeo-chul (fifth from left, front row), Korea Chamber of Commerce and Industry Chairman Sohn Kyung-shik (third from left, front row), and other industry officials pose after the Hyundai Motor Group signed a shared-growth pact with suppliers at a golf club in Gyeonggi Province on Tuesday. (Hyundai Motor Group)
Under its new commitment, the group will create a 100 billion won ($89.6 million) development fund for its suppliers along with an additional 104.6 billion won to its existing 69 billion won emergency fund for its suppliers.
The group will also provide 250 billion won to help finance research and development projects of its suppliers, the group said.
“Hyundai Motor Group is pursuing joint development with its partners based on fair and transparent partnerships,” said Yoon Yeo-chul, vice chairman of Hyundai Motor Co. “It will continue to expand its joint development program to help its partners become small global companies.” (Yonhap News)