HD Hyundai Expands Mutual Growth Support to Second- and Third-Tier Partners, With 7,500 Companies Expected to Benefit

[Financial News] HD Hyundai is working to build a sustainable supply chain by expanding its mutual growth cooperation beyond first-tier partner companies to include second- and third-tier partners.
HD Hyundai announced on the 10th that it had signed a “joint agreement for mutual growth cooperation” with first-, second- and third-tier partner companies at the HD Hyundai Heavy Industries Ulsan shipyard.
About 100 people attended the signing ceremony, including Korea Fair Trade Commission Chairman Joo Byung-ki; Geum Seok-ho, CEO of HD Hyundai Heavy Industries; Kim Jae-eul, CEO of HD Hyundai Samho; Kim Seong-jun, CEO of HD Hyundai Marine Solution; Young-Kee Kim, CEO of HD Hyundai Electric; Kim Jong-cheol, head of the management division at HD Construction Equipment; and representatives of partner companies.
Five HD Hyundai affiliates from the shipbuilding, power equipment and construction equipment sectors participated in the agreement. HD Hyundai plans to establish a fair trading order and strengthen the competitiveness of partner companies through support in finance, productivity, safety and technology. In particular, the support will be expanded to second- and third-tier partner companies, with approximately 7,500 companies expected to benefit.
The five HD Hyundai affiliates will pay all amounts owed to partner companies in cash or through cash-equivalent methods. They will operate financial support programs to help stabilize the partners’ management and support improvements to workplace conditions. They will also provide training and equipment to improve productivity and safety. In addition, they will help protect partners’ technological assets through measures such as the technology escrow system and work to strengthen their cybersecurity capabilities.
Partner companies will also join efforts to extend the benefits of mutual growth cooperation throughout the supply chain. First- and second-tier partners will each improve payment terms for their second- and third-tier partners and expand use of the mutual-growth payment system. They will cooperate to ensure that HD Hyundai’s financial, technological and management support reaches lower-tier partner companies.
An HD Hyundai official said, “Partner companies are partners in sustainable growth as we build a shared ecosystem together.” The official added, “We plan to provide a wide range of cooperation and support to promote mutual growth with our partner companies.”[email protected] Reporter Jeong Won-il