LG to open 200 billion won co-growth fund to tier-3 suppliers
Firm to offer 40 billion won in interest-free loan next month
LG Electronics will expand application to receive funds from its co-growth fund to tier-3 suppliers, the company said on Tuesday.
The fund was set up in 2010 and is run together with Industrial Bank of Korea and Korea Development Bank.
LG partners can get a loan from the fund with low interest rates.
Up to last year, only tier-1 and tier-2 suppliers could apply for loan from the fund.
Starting this year, tier-3 suppliers can also apply. Companies hurt by the pandemic will get preferential loans.
LG said starting this year, around a thousand companies can apply for the loan, a jump of 20% from a year ago.
Tier-1 companies can burrow up to 1 billion won, while tier-2 and tier-3 companies’ are capped at 500 million won.
Members of LG’s supplier association can get up to 2 billion won in loan.
LG will also provide 40 billion won in interest-free loan starting next month for companies building automation solution and new technologies.