LG Display said Thursday it has created a new 40 billion won ($35 million) loan program for suppliers as part of its efforts to support them amid growing economic uncertainties.
The program, named “You Dream,” aims to lend money for selected suppliers to be used on new facility investments or research and development activities. A firm can borrow up to 1 billion won without interest.
LG Display CEO Han Sang-beom
The company said the new program will be helpful for smaller firms that struggle from sluggish exports due to weaker yen and euro exchange rates and higher interest at financial organizations.
The company also hoped the new investments made by its suppliers would be helpful in strengthening its competitiveness, as the money is to be spent on new technologies and products.
Along with the new program, LG Display also runs the Shared-Growth Fund, a low-interest loan program worth 175 billion won, to support suppliers.
“LG Display has been ramping up efforts to create a business environment for shared growth with suppliers,” said LG Display CEO Han Sang-beom. “With the new loan program, we have extended the size and beneficiaries of the program. We hope our suppliers overcome their current struggles and lead the market.”
LG Display was one of the top-rated companies in a recent government evaluation on shared-growth efforts.
By Lee Ji-yoon (jylee@heraldcorp.com)