Korea Fair Trade Commission Signs Mutual Prosperity Agreement with Hyundai Motor Group… Leading Stabilization of Future Mobility Supply Chain

*This content was translated by AI.

The Korea Fair Trade Commission held the 'Hyundai Motor Group Mutual Prosperity Agreement Signing Ceremony' on the 7th at the DoubleTree by Hilton Hotel Pangyo in Seongnam, Gyeonggi Province, together with Hyundai Motor Group and its first- and second-tier suppliers. The agreement aims to establish fair trade practices within the future mobility ecosystem and strengthen cooperation foundations during a period of rapid industrial transformation centered on AI, robotics, and software-defined vehicles (SDV). It is designed to build an advanced economic system where large corporations and small and medium-sized suppliers can grow together.

Attendees included Ju Byeong-gi Gong Jeong-geo-rae (Chairman) and Seo Gang-hyun, Planning Director of Hyundai Motor Group Jo Jeong-dam-dang (President), along with representatives from 12 subsidiaries including Hyundai Motor, Kia, Hyundai Mobis, and POSCO, as well as officials from over 150 first- and second-tier suppliers. Hyundai Motor Group plans to deploy group-level resources to ensure that supplier companies are not left behind during transitions such as electrification, autonomous driving, and robotics.

First, Hyundai Motor Group will improve payment terms to alleviate financial burdens on suppliers. Payment deadlines will be shortened to an average of within 10 days, well below the legal standard of 60 days. The group will also provide education and incentives to reduce payment delays from first-tier suppliers to second-tier suppliers. Additionally, it will promote the use of a 'Mutual Prosperity Payment System' that enables first-, second-, and third-tier suppliers to cash in on delivery payments early. By linking the performance of first-tier suppliers in utilizing this system to evaluations and incentives, the group aims to encourage even lower-tier suppliers to secure funding at interest rates comparable to those offered by large corporations. The Korea Fair Trade Commission will provide incentives to companies that fulfill the agreement and support their implementation.

A customized support system tailored for each subsidiary is also being activated. Hyundai Motor and Kia are operating training programs on SDV and electrification capabilities; Hyundai Mobis is fostering advanced component suppliers aligned with the expansion of its robotics business; Hyundai Rotem is supporting the development of technical talent capabilities. Hyundai Autocore is expanding AI education and welfare benefit programs, Hyundai WIA is facilitating import-export certification, and Hyundai Capico is implementing free patent provision and financial support.

Furthermore, POSCO will provide training on price linkage systems for delivery prices, and Hyundai Transys will offer ESG consulting. In the construction sector, Hyundai Engineering & Construction is expanding its safety incentive program, while Hyundai Engineering allocates safety management costs above legal standards to strengthen on-site safety. iNnocean operates a technology deposit system to support AI subscription fees and protect intellectual property rights, and has also agreed to pay design fees even to suppliers that lose bids.

Through this agreement, Hyundai Motor Group plans to establish fair trade practices and jointly elevate the technical level and competitiveness of the entire supply chain in response to future industrial transformation.

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*This content was translated by AI.