[Sponsored Report] Conglomerates and SMEs work for win-win partnerships

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[Sponsored Report] Conglomerates and SMEs work for win-win partnerships

From joint work to open up new markets to cooperation in green management, conglomerates and small and medium companies are working together in new ways. Unlike in the past, when conglomerates helped but perhaps not enough, relationships are changing to cooperative efforts to raise productivity and find new markets.

This is partly in preparation for a government assessment next year of win-win business partner relationships at Korea’s conglomerates. Those scoring high will be exempt from some taxes and fair trade investigations. Subcontractors, therefore, have high hopes that the trend toward these mutual assistance schemes will continue.

Samsung has announced plans to spend 610 billion won in several areas, including R&D, with its smaller partners, and will allow some subcontractors to use some Samsung patents at no charge.

Hyundai Motor Company has similar plans, and is staking 420 billion won, for example, to purchase raw materials for its subcontractors.

LG and Lotte have also announced plans to cooperate with their subcontractors, and the financial industry is busy with such co-development schemes.

Environmental industries are also involved. On April 26, the Ministry of Environment hosted a rally to promote conglomerate cooperation with smaller partners.

The Ministry of Environment has set aside a special R&D fund for participating companies, and will provide additional incentives and priority handling when participants seek overseas business permits.

By Lee Ji-hyun [concordia@joongang.co.kr]
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