Namyang Dairy Products to Pay 290 Million KRW 'Win-Win Cooperation Fund' to Dealerships This Year

Delivered to 419 Branches Nationwide
Cumulative Support of 760 Million KRW Since 2020

Namyang Dairy Products announced on the 24th that it has paid approximately 290 million KRW in mutual growth cooperation funds to 419 dealerships nationwide this year through the 'Profit Sharing System for Cooperation,' which it first introduced in the industry in 2020.

Kim Seung-eon, CEO of Namyang Dairy Products (left), is taking a commemorative photo with Cho Hong-seon, Vice Chairman of the Fair Trade Commission, after being selected as a 'Franchise Partner Company' by the Fair Trade Commission last year.
[Photo by Namyang Dairy Products]

The Profit Sharing System for Cooperation, promoted by Namyang Dairy Products as part of its ESG (Environmental, Social, and Governance) management, involves sharing profits generated during transactions with dealerships. It operates by paying an amount equivalent to 5% of the net operating profit generated from deliveries to NongHyup to the supplying dealerships. The cumulative amount paid to date reaches approximately 760 million KRW.

Namyang Dairy Products is also committed to dealership welfare through various programs. Notably, since 2013, it has operated the 'Family Scholarship' to support the education of dealership owners' children, providing scholarships totaling about 1.4 billion KRW to 1,050 recipients so far.

Additionally, it runs programs such as ▲awards for long-term operating dealerships ▲support with infant formula and childcare products upon the birth of dealership owners' children or grandchildren ▲interest-free emergency living fund loans for dealerships facing sudden crises due to illness or injury.

Thanks to these efforts, Namyang Dairy Products received an excellent rating in the Fair Trade Commission's 2022 evaluation of fair trade agreement compliance in the dealership sector. Last year, based on the establishment of fair trade-related regulations, signing of standard dealership transaction agreements, support for sales activities, and operation of various welfare and reward programs, it was selected as a 'Fair Trade Companion Company' by the Fair Trade Commission.

A Namyang Dairy Products representative stated, "We continue to implement systems that help strengthen and operate cooperative relationships with dealerships, even if only a little." They added, "We will continue to expand communication with dealership owners to create meaningful achievements for mutual growth management in the future."