KT Provides Advance Payments for Memory Procurement to Mitigate Supply Chain Risks for Partners

KT announced that it has provided advance payments for memory procurement to support partner companies struggling with global supply chain instability and rising memory prices.

Recognizing that supply chain uncertainties are unlikely to be resolved in the short term, KT provided the advance payments to enable set-top box partners—who are significantly affected by memory supply and price hikes—to preemptively secure a six-month supply of memory.

KT expects that this measure will alleviate the financial burden on its partners and minimize disruptions in device production, thereby contributing to the stability of customer services.

The company plans to review further expansion of its support measures depending on future market conditions.

In 2023, KT became the first among South Korea's three major telecommunications companies to introduce and implement a supply chain cost-linked payment system.

Furthermore, the company is extending its demand forecasting period from the previous 4 to 6 months to a maximum of 1 to 3 years and is pursuing long-term contracts for items prone to supply chain issues.

In addition to these efforts, KT operates various partner support programs, including providing operating funds through a mutual growth fund, joint participation in overseas exhibitions, and training to strengthen AI transformation (AX) capabilities.

(Photo: Courtesy of KT, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.