Samsung signed a win-win agreement with its first- to third-tier partners and moved to strengthen a co-prosperity framework across the supply chain. The aim is to expand support, which had centered on large companies and first-tier partners, to second- and third-tier partners to boost supply chain competitiveness.
Samsung said on the 29th that it held a signing ceremony at the Samsung Electronics Suwon campus for a win-win agreement to spread a culture of co-prosperity between large and small businesses and to strengthen supply chain competitiveness.
Samsung Electronics, Samsung Display, Samsung Electro-Mechanics, Samsung SDI, Samsung SDS, Samsung C&T, Samsung Heavy Industries, Samsung E&A, Cheil Worldwide, Hotel Shilla, and SEMES—11 affiliates in total—took part in the agreement. Through this agreement, Samsung expects about 6,700 first- to third-tier partners to receive support benefits.
Ju Biung-ghi, chair of the Korea Fair Trade Commission, Roh Tae-Moon, president and head of the DX division at Samsung Electronics, Kim Young-jae, chair of the Samsung Cooperative Association, and about 150 officials from Samsung affiliates and partner companies attended the event.
Ju Biung-ghi, chair of the Korea Fair Trade Commission (FTC), said, "This win-win agreement will serve as a starting point to open a virtuous channel that allows Samsung's co-prosperity efforts to flow smoothly to small partner companies," adding, "The FTC will also firmly back Samsung and its partners so their efforts can bear fruit."
Roh Tae-Moon, president of Samsung Electronics, said, "Samsung as it is today has been possible thanks to the blood, sweat, passion, and efforts of many partner companies," adding, "As a community of shared destiny that grows together, we will build a higher-level cooperative relationship and work to ensure the warmth of co-prosperity spreads to second- and third-tier partners."
Using the agreement as a springboard, Samsung plans to expand partner support in three areas—funding, technology, and talent. The total size of the existing co-prosperity fund and ESG fund is 3.5 trillion won. It plans to use these to support partners' facility investments, technology development, and ESG transitions.
Technology support will also continue. Samsung Electronics, together with the Ministry of SMEs and Startups, is running a program to support the establishment of smart factories, and since 2015 has opened its patents free of charge. By last year, about 2,500 patents had been transferred to small and midsize enterprises. To protect SMEs' technical data, it also supports up to 1 million won per year in technical data escrow expense.
Support for talent development will continue. Since 2012, Samsung Electronics has operated a job fair for partner companies and has provided management, technology, and leadership training through the Co-Prosperity Cooperation Academy. Recently, it has expanded consulting and online/offline training programs in artificial intelligence (AI), ESG, and automation.
Samsung said it also reflected in this win-win agreement parts of the 5 trillion won social contribution plan released in May, specifically "support for second- and third-tier partners and the creation and operation of an industrial accident fund."