Daesang will advance 40 billion won in payments to suppliers ahead of Chuseok, the Kyunghyang Shinmun reported.

Advancing supplier payments before a holiday is an established practice among Korean companies, because bonuses and raw material payments coincide, concentrating small suppliers' cash needs in a single period.

The benefit comes in reduced interest costs. Where collection is delayed, the gap must be covered with short-term borrowing, and that cost feeds directly into unit costs.

Some note the distinction between a one-off measure at holiday time and a permanent shortening of payment terms. Shorter terms across the year matter more to suppliers' financial stability.

Retail and food are sectors where holiday demand weighs heavily on revenue. As gift-set production and logistics concentrate, suppliers' up-front spending rises with it.

Food distribution and catering businesses run by Chinese-community traders are also affected by holiday cash flows. Setting payment terms and dates clearly at the contract stage is recommended as the practical response.

Government agencies also run pre-holiday financing support programmes. Application windows are often short, so checking announcement schedules in advance is advisable.