Kwak Yeon-soo is a digital editor at The Korea Times creating, editing and curating digital content for the newspaper’s website, mobile app and social media. She previously covered a diverse array of cultural, political and business topics.
Renault Samsung seeks 'mutual growth' with subcontractors
By Kwak Yeon-soo
Renault Samsung Motors CEO Dominique Signora speaks at the Supplier Convention 2019 in Seoul, March 7. / Courtesy of Renault Samsung Motors
By Kwak Yeon-soo
Renault Samsung Motors is stepping up efforts to achieve mutual growth with partner firms by offering various support, the company said Thursday.
The carmaker's efforts for shared growth have been recognized nationwide, receiving good grades from the Korea Commission for Corporate Partnership (KCCP) for five consecutive years ― from 2014 to 2018.
The KCCP started to score the efforts in 2011 in a bid to drive mutual growth between large companies and their subcontractors.
The committee evaluates contract fairness, prevention of law violations, efforts to comply with the law and support for win-win cooperation.
Renault Samsung has pledged to promote fair trade with its subcontractors, carrying out activities such as operating education programs to foster mutual growth, providing financial support and strengthening communication.
Renault Samsung paid 9.1 billion won ($7.5 million) in advance to its 69 suppliers before the Chuseok holiday in September. It also put aside 14.6 billion to help its subcontractors fund their operations before the start of the Lunar New Year holiday.
In 2018, the company signed a fair trade agreement with 70 first-tier partners and 246 second-tier partners, and since has been increasing partner numbers.
The company was the first carmaker to form a shared growth fund designed to resolve the financial difficulties of its suppliers.
It raised 10 billion won, in cooperation with the Ministry of SMEs and Startups, to foster research and development and technical cooperation with small business partners.
“Based on mutual growth, we will continue to roll out cars that meet customer satisfaction,” a Renault Samsung official said.