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| Employees of Korea Gas Corp. and its suppliers are in discussion in this file photo. Courtesy of Korea Gas Corp. |
By Nam Hyun-woo
Korea Gas Corp. (KOGAS) is providing financial and technological support for small- and medium-sized enterprises (SMEs) under its initiative to seek mutual growth with them, the state-run gas firm said Tuesday.
KOGAS said in a statement that it has provided 100.3 billion won in low-rate loans to 387 SMEs from a 120 billion won ($10 million) fund it set up with the Industrial Bank of Korea (IBK) in 2015.
The firm is also providing consultations and information on overseas patents and licensing to SMEs, as well as providing spaces for them at international exhibitions.
Last June, KOGAS set up a booth at the 27th World Gas Conference in Washington, D.C., and provided spaces for SMEs so they could have meetings with overseas buyers.
Another pillar of KOGAS' efforts for mutual growth is cooperation with SMEs for technology development, so the gas firm can localize its facilities and equipment.
KOGAS lowered the barrier in its requirements for suppliers' track record, so more domestic SMEs can ink deals with KOGAS.
"So far KOGAS has been demanding complicated track records of suppliers, which hampered new companies from being KOGAS suppliers," a company official said. "To address that, we have come up with a new credibility test which can replace five years of supplying records for SMEs."
For credibility testing, KOGAS has set up testing facilities at its six supply maintenance centers, so SMEs can test their products more conveniently.
Following such efforts, KOGAS said it plans to expand its purchase of domestic products. Currently, 61 percent of KOGAS facility products are made in Korea, and the firm is seeking to raise this to 81 percent by 2022, which would cut imports worth 105 billion won.
"Without the growth of small- and medium-sized partner companies' growth, KOGAS cannot guarantee sustainable growth," KOGAS Acting President Kim Young-doo said. "We will continue efforts to improve our cooperation scheme so both KOGAS and smaller partner firms can grow together."
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