Ottogi said on Feb. 10 it will pay about 13.8 billion won in subcontracting payments early in cash ahead of the Lunar New Year holiday to ease funding strains among partner companies.

The early payment is intended to ease funding difficulties and support management stability for subcontractors before and after the holiday period. The recipients are 36 firms, including original equipment manufacturers, raw materials suppliers and packaging companies. Ottogi plans to pay the full amount in cash about 50 days earlier than the original payment date.

The company said it provides support in various ways to promote mutual growth and shared development with partner companies. It supports partners by making early cash payments for settlements every holiday season to help ease funding strains. It also set up a shared growth fund for partner companies and distributors to support low-interest loans.

It also runs ESG consulting alongside measures to strengthen partners' quality capabilities and environmental, social and governance capacity, including industrial safety prevention activities, ESG assessments and stronger indicators in the environmental sector.

An Ottogi official said, "We are making early payments of subcontracting fees again this Lunar New Year so it can provide practical help to small and medium-sized companies facing funding difficulties due to the prolonged economic slowdown, high exchange rates and high interest rates." The official added, "We will continue to make efforts for shared growth with our small and medium-sized partner companies."