POSCO assists SME enterprises
South
Korea's POSCO has decided to ease the pressure that the country's small and medium sized enterprises (SME) are going through lately, due to the economic recessions currently experienced. The giant producer is aiming to give relief by offering to pay them in cash within three business days of services provided.
POSCO annually pays around KRW 3 trillion (around $2.8 billion) for goods and services provided by the SMEs. The amount already paid in cash by POSCO under this new payment policy has reach KRW 700 billion (around $663 million). POSCO and POSTEEL, its affiliate specialized in sales, also changed their policy and increased their normal annual import level of 27'000 tons to 630'000 tons, in order to support SMEs in difficulty of supplying raw material due to the steel shortage and insufficient float money. POSCO is trying to decrease the export tonnage and increase its supply to the domestic market instead.