Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Samsung, partner firms sign agreement for mutual growth
Samsung Electronics CEO Roh Tae-moon, front row left, Fair Trade Commission (FTC) Chairman Ju Biung-ghi, front row eighth from left, and other leaders of Samsung affiliates and their partner companies pose during a signing ceremony of a mutual growth agreement at Samsung Electronics headquarters in Suwon, Gyeonggi Province, Monday. Courtesy of Samsung Group
By Nam Hyun-woo
Samsung Group companies signed a comprehensive agreement with their partner companies to promote mutual growth, laying the foundation for more practical cooperation with vendors and a more resilient supply chain.
During a signing ceremony at Samsung Electronics’ headquarters in Suwon, Gyeonggi Province, leaders of 11 Samsung affiliates and their key partner firms promised to pursue mutual growth.
Participating Samsung firms include Samsung Electronics, Samsung Display, Samsung Electro-Mechanics, Samsung SDI, Samsung SDS, Samsung C&T, Samsung Heavy Industries, Samsung E&A, Cheil Worldwide, Shilla Hotel and Semes.
"Samsung could not have achieved its current standing without the hard work, dedication and commitment of its partner companies," Samsung Electronics CEO Roh Tae-moon said.
"As partners with a shared future, we will build a stronger partnership based on mutual growth and work to ensure its benefits extend to second- and third-tier suppliers."
Under the agreement, Samsung affiliates pledged to expand communication channels with partner companies and review the effectiveness of their support programs to deepen cooperation across financing, technology and workforce development and foster a healthier supply chain ecosystem.
Samsung affiliates and their partner companies also agreed to jointly explore ways to strengthen their global competitiveness, including supporting suppliers' overseas expansion and enhancing links with global supply chains.
Upon signing a wage agreement with its labor union last month, Samsung Electronics pledged a 5 trillion won ($3.24 billion) social contribution initiative, which includes support for second- and third-tier suppliers as well as the establishment of an industrial accident fund. The company said Monday's agreement incorporates those commitments as part of its efforts to pursue more responsible and sustainable cooperation with its partner companies.
The group said it expects the agreement to benefit 6,700 companies in Samsung’s supply chain.
Fair Trade Commission (FTC) Chairman Ju Biung-ghi speaks during a signing ceremony of a mutual growth agreement between Samsung Group affiliates and their partner companies at the Samsung Electronics headquarters in Suwon, Gyeonggi Province, Monday. Courtesy of FTC
“The agreement would lay the groundwork for a virtuous cycle that allows Samsung's mutual growth initiatives to reach smaller partner companies,” Fair Trade Commission Chairman Ju Biung-ghi said.
Kim Young-jae, head of Samsung Electronics partner companies’ council, better known as Hyupsunghoe, said he hopes the agreement will serve as a chance for the government, large companies and small- and medium-sized enterprises to renew their commitment for mutual growth.
Since 2010, Samsung Electronics has been operating a mutual growth fund to support partner companies to receive low-interest loans for facility investment and research and development. Since 2024, the company has also operated a separate environmental, social and governance fund to support workplace environmental and safety improvements. The combined size of the two funds currently stands at 3.5 trillion won.
Since 2015, Samsung Electronics has also made 2,500 of its patents available free of charge, allowing not only partner companies but also nonpartner firms to use its intellectual property.