Lotte Chemical Supports Polarization Resolution of Partner SMEs with 326 Billion KRW Collaboration over 3 Years

[Asia Economy Reporter Kim Bo-kyung] Lotte Chemical will support a win-win cooperation model with partner small and medium-sized enterprises (SMEs) worth a total of 326 billion KRW over three years.

The Win-Win Growth Committee and Lotte Chemical signed the "Polarization Resolution Voluntary Agreement" once again on the 8th at Lotte World Tower in Songpa-gu, Seoul, together with partner SMEs, following the initial agreement in 2019.

In 2019, Lotte Chemical signed the "Innovation-Driven Wage Gap Resolution Agreement" to resolve wage disparities between large and small-medium enterprises and promote win-win growth. As the three-year agreement period expires this year, the polarization resolution voluntary agreement has been renewed.

They plan to provide support across various areas including joint research and development (R&D) with partner SMEs, productivity improvement, overseas market development, and sustainable management.

First, they agreed to strive to comply with the three principles of proper payment in cooperative transactions such as subcontracting, consignment, delivery, and services. In particular, they will operate an adjustment consultation system to reflect factors causing changes in delivery prices, reviewing and adjusting raw material variable costs upon subcontractors’ requests.

From this year, they will support a polarization resolution win-win cooperation model worth a total of 326 billion KRW over three years, tailored to the characteristics of the petrochemical industry. SMEs will endeavor to △strengthen innovation efforts such as R&D and productivity improvement △improve product and service quality and enhance price competitiveness △improve employee working conditions and expand new employment.

The Win-Win Growth Committee will actively cooperate to ensure that polarization resolution and win-win growth activities between Lotte Chemical and partner SMEs are implemented by △providing opportunities for technology and purchasing consultations △deriving and promoting best practices.

Oh Young-gyo, Chairman of the Win-Win Growth Committee, stated, "Through win-win growth with partner SMEs, we hope to strengthen the overall competitiveness of the industry and for Lotte Chemical to leap forward as a global integrated chemical company."