Samsung Electronics, Korea's First Company to Achieve 10 Consecutive Years of 'Best' Win-Win Growth (Comprehensive)

Win-Win Growth Committee Announces 2020 Evaluation Results
Establishment of Fair Trade for Partner Companies
Recognition of Support Activities for SMEs and Mid-Sized Companies in Win-Win Cooperation

Prime Minister Kim Boo-kyum (front row, left) and Samsung Electronics Vice Chairman Lee Jae-yong are applauding at the 'Samsung Youth Software Academy (SSAFY)' training site held on the 14th at Multicampus in Yeoksam-dong, Gangnam-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kim Heung-soon] On the 15th, Samsung Electronics received the highest grade for 10 consecutive years for the first time among domestic companies in the ‘2020 Win-Win Growth Index Evaluation’ announced by the Win-Win Growth Committee (Win-Win Committee). This recognized the achievements of continuously supporting various activities aimed at coexistence with small and medium-sized enterprises (SMEs) and mid-sized companies. Vice Chairman Lee Jae-yong of Samsung Electronics expressed his determination to meet the national expectations and hopes with the keywords of investment, employment, and coexistence, and is expected to accelerate efforts to strengthen corporate social responsibility.

The Win-Win Growth Index is an indicator that quantifies the level of win-win growth by evaluating about 210 large companies on ▲fair trade ▲win-win cooperation activities ▲partner companies’ perception, to promote win-win growth between large and small and medium enterprises. Since the evaluation was introduced in 2011, Samsung Electronics is the only company to have been selected for the highest grade for 10 consecutive years. It was also chosen as an 'Excellent Honorary Company,' awarded to companies that have received the highest grade for three consecutive years.

‘Three-Pronged’ Support of Funds, Technology, and Talent Development

Samsung Electronics has established a ‘customized’ support plan covering funds, technology, and talent development to help the growth of domestic SMEs and mid-sized companies. A representative example is the introduction in 2005, the first among domestic companies, of a method to pay the full transaction amount to SME and mid-sized partner companies in cash. This was an attempt to stabilize partner companies’ production and delivery and to establish a fair trade culture.

Since 2017, Samsung Electronics has introduced a method to provide interest-free loans for two years by creating a 500 billion KRW ‘Payment Support Fund’ so that first-tier partner companies can shorten payment periods to second-tier partner companies within 30 days. In 2011, a 1 trillion KRW Win-Win Fund was also established to allow partner companies to borrow funds for technology development and facility investment at low interest rates.

With the aim of achieving win-win growth by sharing manufacturing know-how of large companies, since 2015 Samsung Electronics has been opening its patents free of charge to domestic SMEs and venture companies. As of July this year, about 1,560 patents have been transferred. In 2013, Samsung Electronics launched the ‘Win-Win Cooperation Academy,’ a dedicated organization to transfer the technology and know-how it has acquired over the past 50 years to partner companies. The academy consists of a professional ‘Consulting Center,’ an ‘Education Center’ supporting courses such as innovation, job skills, technology, and leadership, and a ‘Youth Job Center’ supporting talent recruitment.

In addition, since 2015, Samsung Electronics has promoted a smart factory construction project that installs advanced processes to strengthen safety at SME manufacturing sites and improve work efficiency. For companies selected as support targets, Samsung dispatches manufacturing experts to provide consulting related to the project. By last year, Samsung Electronics had supported more than 2,500 companies in building smart factories.

Emphasis on ‘Social Contribution’ over Business Issues

Last month, Samsung Electronics announced a plan to strengthen investment in strategic businesses to prepare for changes expected after COVID-19, create employment and opportunities for future generations, and foster an ecosystem of shared growth. Since then, while investments in business issues such as semiconductors and bio are being carefully reviewed, bold decisions are being made in plans to expand domestic jobs and promote win-win growth.

Following a previous promise to hire 40,000 people over the next three years, the company announced a plan the day before to create an additional 30,000 youth jobs over three years. Vice Chairman Lee also chose the government’s youth job creation project site as his first official external activity after his parole on the 13th of last month.

Moreover, the safety and productivity incentive fund for excellent partner companies will be expanded to 240 billion KRW over three years, and the 20 billion KRW public-private R&D fund operated with the Ministry of SMEs and Startups will be increased to 30 billion KRW. A business community official said, “Since Vice Chairman Lee pledged to ‘become a Samsung that earns the trust of the people,’ Samsung is expected to put more effort into social contribution areas that meet this commitment.”

Meanwhile, 36 companies including Samsung Electronics, Kia, Naver, Nongshim, Daesang, Samsung Display, Samsung C&T (Construction Division), Samsung Engineering, Samsung SDS, Semes, Yuhan-Kimberly, Innocean, Cheil Worldwide, Paris Croissant, POSCO, Hyundai Construction, Hyundai Mobis, Hyundai Engineering, Hyundai Wia, Hyundai Motor Company, Hyundai Transys, CJ CheilJedang, DL E&C, GS Retail (GS25), KT, LG Display, LG Household & Health Care, LG Uplus, LG Innotek, LG Chem, LG CNS, SK Ecoplant (formerly SK Engineering & Construction), SK Holdings, SK Geocentric (formerly SK Global Chemical), SK Telecom, and SK Hynix received the highest grade in the 2020 Win-Win Growth Index evaluation.