Hyundai Motor Group said Monday that it would extend financial support for suppliers and their subcontractors which are expected to face difficulties in the coming months amid slowing car sales and volatile foreign currency rates.

As part of efforts to seek shared growth with smaller firms, the Korean auto giant has decided to expand beneficiaries of existing financial benefits from the current 300 suppliers to 5,000 or so subcontractors from this year.

Hyundai had operated four support programs for suppliers on product development and new facilities. But their smaller subcontractors had been given limited benefits from only two programs thus far, the carmaker said.

“We will support more subcontractors to benefit from support programs more easily,” a Hyundai Motor Group official said.

The group, which owns Hyundai and Kia brands, also pledged to step up efforts to improve unfair trade practices with smaller firms, including those between its primary suppliers and their subcontractors.

Following a new online system adopted last year, through which suppliers post an annual plan of contracts and their quarterly performances, Hyundai plans to require more detailed plans in order to better manage individual transactions.

More information on product development and its future direction will be shared with suppliers through education programs that had long been used exclusively for Hyundai and Kia employees, the group said.

“We will create a new shared-growth model by offering diverse measures not just to our direct suppliers but also to their subcontractors,” said the official.

Hyundai said it had poured 60 billion won ($55 million) into a fund that aims to elevate product and technical competitiveness of indirect suppliers since 2002.

By Lee Ji-yoon (jylee@heraldcorp.com)