Value context and insight. lkm@koreatimes.co.kr
LG Innotek seeks mutual growth with SMEs, promotes ESG goals
LG Innotek CEO Jeong Cheol-dong, fourth from left in the front, raises his fist with other CEOs of partner firms at LG Science Park in Magok, Seoul, Thursday. LG Innotek
By Lee Kyung-min
By Lee Kyung-min
LG Innotek held an event promoting mutual growth with its small partner firms at LG Science Park in Magok, Seoul, Thursday, the electronic components manufacturing affiliate of LG Group said Friday.
About 50 people attended the event, including CEO Jeong Cheol-dong and other management officials. They discussed ways to foster long-term business relationships to benefit both sides.
“A variety of activities that promote sustainable mutual growth with our partner firms are the most important foundation for creating unmatched customer value,” Jeong said at the event.
“We will support environmental, social and corporate governance (ESG) management activities for us both to become sustainable entities.”
The LG affiliate introduced a program whereby the firm and its partners will be able to seek cooperation across the financial, technological advancement, management and education sectors. The efforts will be underpinned by a memorandum of understanding for 2023 signed by over 100 partner firms.
LG Innotek will establish a mutual growth fund of 143 billion won ($109 million) this year, an increase of 40 billion won compared to 2022.
The fund will assist the partner firm's ESG management activities by offering borrowing rates far lower than market rates.
Jeong plans to pay a visit to major partner companies this year to better address and resolve their difficulties, thereby establishing a strong partnership.
The firm also plans to organize a “growth camp” before the year's end to share knowledge and recommendations to advance practical solutions for sustainable growth and strengthen open and frequent communication.
Over 100 of its partner firms will attend an academic session in November organized by the LG affiliate, where participants will be trained to hone their leadership skills and broaden their understanding of humanities. The annual event has drawn positive reviews from the participants over the past few years.