LG Chem going aggressive in investments for partner firms
An employee at Buseung Chemical in Ulsan packs the company's finalized products using a portable wrapper provided by LG Chem in this May photo. Courtesy of LG Chem
LG Chem has established five key strategies for shared growth with partner firms to foster a fair trading culture and strengthen partner capabilities, implementing detailed initiatives under each strategy.
To promote a fair and transparent trading culture, LG Chem has adopted industry-specific standard subcontracting agreements and key compliance principles recommended by the Fair Trade Commission.
To support smooth financial operations of its partners, LG Chem is providing financial assistance totaling 206 billion won ($136 million) as of 2025. This includes the Win-Win Fund, a low-interest loan program worth 106 billion won that supports partners’ working capitals. To financially support environmental, social and governance (ESG) initiatives, LG Chem has partnered with Shinhan Bank to establish a 100 billion won ESG Shared Growth Fund.
The company has also continuously improved payment terms for subcontractors. Currently, payments are settled three times per month and paid 100 percent in cash within 10 days after closing.
To strengthen capabilities of small- and medium-size partner companies that lack sufficient budget and manpower, LG Chem contributes 1 billion won annually to a shared growth cooperation fund which supports various management capability enhancement programs free of charge.
In the area of energy efficiency, LG Chem has been identifying energy-saving opportunities and providing carbon reduction equipment to partner companies for free since 2012.
To help partner companies achieve long-term self-sustainability and grow into globally competitive firms, LG Chem operates various programs including technical support and technology protection. LG Chem Research Institute and CS Center provide some 4,000 cases of analysis and testing services annually free of charge, helping partners overcome limitations due to a lack of testing equipment.
LG Chem supports partner companies in improving productivity by identifying tailored initiatives in areas such as products, processes and organizational innovation. Through LG Academy, the company offers foreign language training programs and operates a dedicated online education platform providing free courses in business, IT, financial management, humanities and leadership.
LG Chem received the highest “excellent” rating for 10 consecutive years in the 2024 Shared Growth Index evaluation announced by the Korea Commission for Corporate Partnership. (Advertorial)