Three-Party Agreement on the 24th Among FSC, Samsung, and 5 Major Financial Holding Companies
Samsung Establishes 1 Trillion Won Fund... Interest-Free Loans for Partners
Targeting First-Tier Partners of Samsung Electronics and Samsung Display
Funds for Workplace Environment and Safety Improvements
Up to 2 Billion Won, Extension Possible for Up to 3 Years
On the 24th, Samsung Electronics signed a business agreement at the Bankers Hall in Myeongdong, Seoul, with the Financial Supervisory Service, the five major financial holding companies, and domestic partner companies to establish a 'Partner Company ESG Fund' supporting ESG (Environmental, Social, and Governance) management. The fund size reaches approximately 1 trillion KRW.
Through this agreement, Samsung will deposit 1 trillion KRW with the five major banks, enabling small and medium-sized partner companies to receive interest-free loans by utilizing the deposit interest and reduced interest rates. This is a case where large corporations and financial institutions have joined hands to support SMEs struggling with ESG management, and it is expected to serve as an opportunity to spread a culture of mutual growth in the future.
In particular, Samsung Electronics and Samsung Display are actively creating the 1 trillion KRW fund and supporting first-tier partner companies with interest-free loans to ensure no difficulties in transitioning to ESG management. Samsung Electronics contributed 800 billion KRW, and Samsung Display contributed 200 billion KRW. The fund will be implemented from October and used as capital for building ESG management foundations for partner companies over the next six years.
When a partner company establishes an ESG investment plan such as improving workplace environment and safety or reducing energy usage and applies for a loan, Samsung Electronics and the banks review whether the fund’s purpose aligns with ESG management before deciding on support. Based on the review, companies can receive interest-free loans for up to 2 billion KRW per company for a maximum of three years. After the initial loan, extensions can be applied for up to twice annually. By utilizing the interest from the 1 trillion KRW fund deposited by Samsung with the five major banks and additional interest rate reductions provided by the five banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) that signed the agreement, partner companies can now access interest-free loans.
Vice Chairman Han Jong-hee stated, "Although everyone is facing difficulties due to an uncertain business environment, it is necessary for not only large corporations but also small and medium-sized partner companies to participate in ESG management for the sustainable growth of the entire supply chain." He added, "Samsung Electronics will spare no effort in providing various support such as funding, workforce development, and technology to help partner companies establish an ESG management foundation."
Meanwhile, Samsung plans to continue efforts to practice a 'sustainable win-win cooperation' model that grows together with partner companies. As part of this, under the CSR vision 'Together to the Future! Enabling People,' Samsung continues social contribution activities focused on youth education and win-win cooperation.
Youth education-centered activities include programs such as Samsung Youth SW Academy, Samsung Hope Bridge, Samsung Dream Class, Samsung Blue Elephant, and Skills Olympics Technical Training, designed to maximize the potential of young people. Additionally, Samsung supports win-win cooperation programs such as assisting SMEs in transitioning to smart factories, C-Lab (Inside/Outside), establishing win-win funds and ESG funds, providing incentives to partner companies, Samsung Future Technology Development Project, Samsung Guide Dog Project, Sharing Kiosk, Samsung Multicultural Youth Support Project, and Samsung Elderly Support Project.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
