Ju Byung-ki: "Samsung's win-win efforts will be a starting point for spreading across the entire supply chain"

[Financial News] The Korea Fair Trade Commission (KFTC) announced on the 29th that it held a signing ceremony for the "Samsung-1st, 2nd, and 3rd-tier Partner Win-win Agreement" with officials from 12 Samsung affiliates and partner companies in attendance.
The agreement was designed to ensure that win-win cooperation efforts extend beyond Samsung's first-tier partners to smaller second-tier suppliers as well.
Key measures include improved payment terms for Samsung and its first- and second-tier partners, as well as expanded financial and technical support for Samsung's first-, second-, and third-tier suppliers.
Samsung agreed to pay first-tier partners within 10 days after closing, while maintaining and complying with cash-equivalent payments and the Mutual Payment System. It also decided to make holiday payments earlier.
First- and second-tier partners also agreed to set payment deadlines for lower-tier suppliers within 30 days after closing and to make efforts to use cash-equivalent payments and the Mutual Payment System. This reflects the view that payment terms are the most important factor in ensuring stable liquidity for small and medium-sized suppliers.
Samsung also decided to expand its existing win-win support for first-tier partners and newly establish or broaden financial and technical assistance for second- and third-tier suppliers.
Samsung is currently operating a total of 3.5 trillion won in Win-Win Funds and ESG Funds. Through these funds, it plans to continue and expand financial support for partner companies' facility investment, technology development, and ESG transitions. In particular, Samsung Electronics included in this agreement its pledge from May to return 5 trillion won to society, including support for second- and third-tier suppliers and the creation and operation of an industrial accident fund.
Samsung also decided to proactively reflect fluctuations in energy costs and labor expenses in payments, even though they are not currently subject to subcontract payment linkage under the Subcontracting Act. It will also work to strengthen partner companies' competitiveness by providing environmental and safety management consulting for second- and third-tier suppliers.
KFTC Chairman Ju Byung-ki said, "Samsung's win-win efforts will flow seamlessly into the win-win efforts of its partners, and this will be a starting point for building a large forest of a healthy corporate ecosystem in which the achievements of large companies are distributed fairly not only to upper-tier partners but also to lower-tier suppliers." He added, "The KFTC will also provide firm support so that the efforts of Samsung and its partners can bear fruit."
The KFTC plans to award additional points in future Fair Trade Agreement implementation evaluations to companies that faithfully carry out this win-win agreement. It will also provide incentives, including selection as an exemplary subcontracting company for small and medium-sized enterprises.



hippo@fnnews.com Kim Chan-mi Reporter