SOUTH KOREA. Lotte Duty Free has extended its support for Korean small and medium-sized business partners affected by the COVID-19 outbreak.
Effective from this month, the retailer will shorten its payments cycle to assist around 400 smaller players with cash flow. The company will pay domestic SME partners twice a month rather than once, with a total of KRW150 billion (US$122 million) to be paid out between April and June.
Other final assistance measures have also been extended. In July 2019, Lotte Duty Free contributed to a KRW50 billion (US$41 million) fund to support low interest rate financing for small and medium-sized businesses. This has been extended from primary trading partners that deal directly with Lotte Duty Free to encompass a secondary tier of suppliers in the market.
A further initiative valued at KRW3.5 billion (US$2.8 million) will strengthen marketing and improve presentation for SME brands in Lotte Duty Free stores.
Lotte Duty Free said it also plans to enhance its search for new SME partners. As reported, last September the retailer launched a competition under the ‘K-Wave’ name to recruit emerging Korean brands, offering them a platform for growth through its stores. Some 15 brands chosen last year are now available in Lotte Duty Free’s online store, with nine preparing to enter its downtown stores. The company plans to extend this programme to encourage new entrants.
Lotte Duty Free CEO Kap Lee said: “With the coronavirus, the entire duty free industry is in a difficult situation, but we have expanded our support to small and medium-sized partners to join forces with the government and business to overcome the crisis.”
