Samsung to spend $1 bil. for 'shared growth'
Won Ki-chan, left, executive vice president of Samsung Electronics, speaks during a news conference at the company’s main office in southern Seoul, Wednesday, about its plan to support “shared growth.” / Courtesy of Samsung Electronics
By Kim Yoo-chul
Samsung will invest 1.2 trillion won ($1.07 billion) by 2017 to help its first- and second-tier suppliers and partners, the group said Wednesday.
The decision came as part of efforts to support the government’s initiative to ensure shared growth and establish a “creative economy.” This year alone, it will spend 327 billion won on the co-prosperity scheme, it said.
The group also decided to allow local third party developers, partners and start-ups to use more of its patents in line with the company’s vision to become an “innovative company.”
“Samsung hopes to create eco-systems by expanding our financial and educational programs to our top- and second-tier contractors, and even firms that currently don’t have any business with us,” said Choi Byung-seok, executive vice president of the Samsung Mutual Cooperation Center, in a press conference, Wednesday.
Choi stressed that the investment wasn’t aimed at supporting Samsung partners; instead it will be used to share Samsung technologies and business know-how.
“When the competiveness of local small and medium enterprise (SMEs) improves, our partners will get better and that will boost the competitiveness of Samsung Electronics. That’s why we are aiming to create whole new eco-systems,” the executive told reporters.
The group will run joint programs with its suppliers and partners for employee training and technology development.
“Samsung will set up a Mutual Cooperation Academy in Suwon, near Samsung’s technology compound by the end of next year,” Choi said.
The executive said efforts toward co-prosperity will continue over the next decade.
“Samsung has 780 top-tier partners, and the number of our second-tier partners is 3,400 in Korea. Samsung has the goal of helping some 50 local partners rise as internationally-competitive players by 2015,” said Choi.
The group’s 11 affiliates will create a 177 billion won fund with Samsung Display investing 77 billion won, followed by Samsung Electronics with 42 billion won, Samsung SDS with 19 billion won, Samsung Heavy with 15 billion won and Samsung Electro-Mechanics with 11 billion won, it said.
He added that the firm will grant complete access to some of its patents to individual developers, start-ups and local SMEs that are having a hard time developing new products due to the lack of related patents.
It has so far granted access to 1,752 out of its total 200,000 patents to local partners without charging royalties.
Of them, 613 patents are related to visual displays, 372 to telecommunications and 295 to semiconductors. Samsung has also allowed the use of 276 home appliance and 122 printer related patents, according to the statement.
“Samsung will expand the number of patents that will be used by third parties without any financial burden from this year and we will open those patents to
,” said Choi.
Samsung officials said patents are a good source of innovation and added the firm is spending more to strengthen its patent portfolio.
On a related note, Samsung Display recently established a new firm in the United States ― Intellectual Keystone Technology ― specializing in trading and developing patents.
The new firm acquired display-related patents earlier owned by Japan’s Seiko Epson on 30 April 2013, including ones related to LCD displays and OLEDs, which are used in smartphones, tablets and televisions.