LG Electronics (www.lge.co.kr) reinforces the foundation for mutual growth and coexistence with partners. We have been operating a win-win cooperation fund for primary and secondary suppliers, and from this year onward, we will expand the target of support so that tertiary suppliers can also utilize the fund.Since 2010, LG Electronics has been operating a win-win partnership fund worth 200 billion won with IBK and Korea Development Bank. Suppliers can use the win-win partnership fund to receive low-interest loans when they need funds.
Until last year, the first and second-tier suppliers that signed a fair trade agreement with LG Electronics were the targets of support, but from this year, third-tier suppliers can also receive loans using the Win-Win Cooperation Fund when they need funds. In particular, LG Electronics plans to provide priority support when a partner who is suffering from Corona 19 applies for a loan.
There are about 1,000 suppliers that can use the win-win cooperation fund, an increase of more than 20% from last year. The limit of support is 1 billion won for primary partners and 500 million won for secondary and tertiary partners. In the case of a’cooperation association’ member companies formed for close exchange and mutual development by partner companies, they can apply for up to 2 billion won.
LG Electronics expects that expanding the targets of the Win-Win Cooperation Fund will help partner companies in need and build a healthy ecosystem for shared growth.
LG Electronics will provide an interest-free fund of 40 billion won next month, one month ahead of last year. Interest-free funds are used to build automation solutions, improve old facilities, and develop new technologies to increase the productivity of partners.
In addition, LG Electronics is operating a win-win payment system so that primary, secondary, and tertiary partners can receive cash early on the payment date of delivery payments based on credit from large companies to secure liquidity. The amount paid by LG Electronics’ primary partner to secondary partner companies through the win-win payment system was about 530 billion won last year, the largest among domestic companies.
LG Electronics provides various support for win-win cooperation such as △ development of parts applying new technology and new construction methods △ consulting for manufacturing innovation △ free education so that suppliers can incorporate various innovative technologies into overall management.
Lee Si-yong, head of LG Electronics Purchasing/SCM Management Center, said, “We are looking for various ways to actively support and grow together with suppliers who are experiencing difficulties.” We will make every effort to lead to secondary suppliers.”