- Improving payment conditions, including payments within 10 days
- Expanding technological and educational support for suppliers to strengthen competitiveness in the future mobility industry
July 7, 2026
On Tuesday, July 7, the Korea Fair Trade Commission (KFTC, Chairman Biung-Ghi Ju) held the "Hyundai Motor Group – 1st, 2nd, and 3rd-Tier Suppliers Win-Win Cooperation Agreement Signing Ceremony" at DoubleTree by Hilton, with representatives from 12 Hyundai Motor Group affiliates and their suppliers in attendance.
The participating affiliates are Hyundai Motor Company, Kia, Hyundai Mobis, Hyundai Steel, Hyundai Engineering & Construction, Hyundai Rotem, Hyundai Engineering, Hyundai Transys, Hyundai WIA, Hyundai AutoEver, Hyundai KEFICO, and INNOCEAN.
This win-win agreement is designed to spread Hyundai Motor's culture of mutual cooperation throughout the entire supply chain, ensuring that practical benefits reach the smaller 2nd-tier and lower-tier suppliers. It marks the fourth such agreement signed by a major large enterprise group, following Samsung, SK, and LG.
The main contents of the agreement consist of ▲improving payment conditions for Hyundai Motor and its 1st and 2nd-tier suppliers, and ▲expanding technological and educational support to strengthen supplier competitiveness during the transition to the future mobility industry. These measures were established through voluntary consultations between Hyundai Motor and its suppliers.
Key Content of the Agreement
1. Improvement of Payment Terms
First, Hyundai Motor and its 1st and 2nd-tier suppliers have agreed to improve payment conditions for their respective lower-tier partners. This reflects the understanding that "payment terms"—such as the timing and method of payment—are the most critical factors for SMEs to secure and manage stable liquidity.
- Hyundai Motor's Commitment: Hyundai Motor will pay its 1st-tier suppliers within an average of 10 days after the closing date and will increase the ratio of cash-equivalent payments. The company will also continue to enhance the utilization of the "Win-Win Payment System" and establish a culture of early payments for the holiday season.
- 1st and 2nd-Tier Suppliers' Commitment: These suppliers have also committed to shortening payment periods, increasing cash-equivalent payment ratios, and expanding the use of the Win-Win Payment System for their SME partners.
- Incentives: Concurrently, Hyundai Motor will provide various internal support measures for suppliers that faithfully participate in these initiatives. By actively involving 1st and 2nd-tier SMEs, the benefits of Hyundai Motor’s improved payment conditions are expected to flow seamlessly down to smaller 2nd-tier and lower-tier suppliers.
2. Expansion of Technological and Educational Support for Future Mobility
Next, Hyundai Motor will actively expand its technological and educational support to strengthen the competitiveness of SME suppliers during the transition to the future mobility industry, which encompasses AI, autonomous driving, and robotics.
- AI and Autonomous Driving: Hyundai Motor Company and Kia will support their suppliers' transition to AI, software, and autonomous driving technologies. They will also offer training programs to enhance the AI and cybersecurity capabilities of supplier employees.
- Robotics: In line with the expansion of its robotics business, Hyundai Mobis plans to actively foster technical suppliers related to advanced components.
This agreement is expected to benefit approximately 5,500 suppliers within the Hyundai Motor supply chain. Furthermore, Hyundai Motor has expressed its commitment to embodying the principles of mutual growth by incorporating the core contents of this agreement into the Fair Trade Agreements scheduled to be signed with its suppliers early next year.
KFTC Chairman Biung-Ghi Ju stated, "Deepening inequality and polarization are the most critical obstacles to the economic development of the Republic of Korea today," noting that "the polarized corporate ecosystem is the most significant cause of this."
He emphasized, "Innovation in the future mobility industry can be sustained more solidly upon a healthy collaborative structure and mutual growth with suppliers," adding, "The KFTC will serve as a strong partner in this meaningful win-win agreement between Hyundai Motor and its suppliers."
The KFTC plans to closely monitor the faithful implementation of this agreement through Fair Trade Agreement evaluations and will provide incentives to excellent companies in the future. Furthermore, the KFTC will continuously encourage the conclusion of win-win agreements between large enterprises and suppliers to establish a desirable culture of mutual growth across the industrial ecosystem.