LG Group to pay cash to support suppliers from 2009

SEOUL, Nov. 24 (Yonhap) -- Six major affiliates of LG Group, South Korea's
third-largest family-run business conglomerate, said Monday they will pay their
some 1,700 suppliers in cash from next year to help them amid a rapid downturn in
economy.

The affiliates included LG Electronics Inc., LG Chem Ltd. and LG Innotek Co., the
group said in a statement. To pile up more cash reserves, South Korea's big
companies have typically paid their suppliers in six-month corporate notes.
LG Group will also increase a support fund earmarked for suppliers next year to
343 billion won (US$230 million), from 175 billion won this year, according to
the statement.
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