POSCO supports small companies

By Yi Whan-woo

POSCO is stepping up efforts to support small- and medium-sized enterprises (SMEs) through a program that provides financial support and mentoring.

The POSCO venture partner program aims to help financially-strapped SMEs that have creative business plans. The worlds fourth-largest steelmaker has helped 22 firms in the last two years by making direct investments or introducing them to other potential investors. In April, POSCO announced it would support 16 new companies.

POSCO believes its program helps the government effort to create more jobs and nurture SMEs.

Since the program started in 2010, employment has increased by 15.2 percent at the 22 companies POSCO has helped.

Were confident that our program is creating a favorable business environment for venture companies, POSCO CEO Chung Joon-yang said. We are on the forefront in generating more jobs and helping innovative firms, and well continue our efforts to raise employment rates.

Under the program, the steel manufacturer reviews business ideas from troubled companies and selects candidates to participate in a three-day event designed to find ways to make their ideas a reality.

The qualified companies then undergo extensive one-on-one consultation with experts for the next 10 weeks before they are given a chance to demonstrate their plans at the Idea Marketplace, a fair arranged by POSCO for the companies to find investors.

Investments have so far totaled 7.3 billion won, 4.2 billion won from POSCO, and 3.1 billion won from other investors including the government-affiliated Small and Medium Business Corporation (SBC).

The countrys largest steelmaker is also supporting subcontractors of SMEs, by paying cash for their purchases.

Such a payment system is a very unique way to help SMEs in terms of their finances, POSCO said.

The conglomerate is also sharing its business knowledge.

Researchers and engineers at POSCO have discussed business plans with troubled firms and allowed them to use the firms testing facilities for free.

POSCO has also held a business management session for employees of its SMEs to help them better understand their jobs and the steel industry.