Samsung Group, South Korea's top family-controlled conglomerate, said Wednesday it will grant its 5,200 contractors financial support and allow them to use its patents free of charge.
The move comes amid calls from the government that the country's family-owned conglomerates, known as chaebol, should share "excess" profit and seek mutual growth with their contractors that are usually small and medium enterprises.
Samsung earmarked 610 billion won ($562 million) to create a fund to give low-interest loans to contractors and to help finance their research and development budgets.
The group's contractors and subcontractors will also be able to share the tens of thousands of patents that belong to Samsung's affiliates. Samsung has about 60 affiliates under its wing, including Samsung Electronics Co., and hires some 270,000 workers.
"Patents were previously granted to a limited number of contractors but we will open them up so that any contractors in related fields can share," said a group official.
The plan was announced during a signing ceremony among officials from Samsung affiliates, the group's contractors and subcontractors, who together pledged to pursue fair business practices and mutual growth.
Samsung is the latest conglomerate to announce such measures after Hyundai Motor Group said last month it will spend 420 billion won to assist its contractors. (Yonhap)