Samsung offers W2.6tr for virus-hit subcontractors

(Yonhap)

Samsung Electronics said Sunday it will provide 2.6 trillion won ($2.18 billion) worth financial support for its subcontractors who are facing difficulties in procuring parts due to the novel coronavirus outbreak.

The company will lend them 1 trillion won at lower-than-usual interest or zero rates, while providing 1.6 trillion won worth goods payments in advance by using its existing funds raised for contractors, the tech giant said.

Logistics costs of express deliveries of major raw materials and parts by airlines will be covered by Samsung, too.

The company will also seek new logistical routes for faster deliveries of materials together with the contractors for smooth procurement of parts, and supply guidelines for preventive measures against the virus infection, it said. 

South Korea has reported 25 confirmed coronavirus cases as of Sunday.

By Song Su-hyun (song@heraldcorp.com)