Samsung’s pledge for R&D funding

Samsung yesterday pledged to spend 770.7 billion won ($682 million) on 4,539 enterprises in business partnerships with its 11 affiliates this year to help them boost their competitiveness. Most of the money will go to research and development, said Samsung.

At a meeting of dozens of executives from its 11 affiliates, Samsung’s business partners and officials from the Fair Trade Commission and other government bureaus, the company signed an agreement for “fair trade and mutual growth” at its headquarters in Seocho-dong, southern Seoul.

It also pledged to root out corruptive business practices such as bribery.

Samsung launched the program last year as the government promoted “shared growth” between large conglomerates and small- and medium-sized companies. The conglomerates were criticized for squeezing suppliers and subcontractors on prices.

Cheil Industries and Samsung Engineering joined the Samsung affiliates participating in the program this year. Existing members include Samsung Electronics, Samsung SDS, Samsung Techwin and Samsung Mobile Display.

By Seo Ji-eun [spring@joongang.co.kr]