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Daewoo Motor assembly lines in South Korea were still for a second day as a boycott by a major parts supplier was set to widen to include others who are together owed $700 million in unpaid bills, Reuters reported.
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On Thursday, all of Daewoo’s four plants in South Korea were closed, Daewoo spokesman Kim Sung-soo told Reuters.
“We are trying to end the dispute,” Kim told Reuters. “We are in talks with creditors about shortening our payment period for suppliers.”
Suppliers have demanded bills be paid within two weeks of deliveries compared with the current four to five weeks, Reuters said.
A compromise on the issue would be offered to suppliers before they meet on Friday to decide their next move, Kim told Reuters.
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By GlobalDataReuters noted that suppliers want to be paid outstanding amounts in full while Daewoo’s creditors want them to offer a discount.
