LG Chem seeks mutual growth with partners

Officials of social enterprises joining LG Chem's social fellow festival program pose in this April 26, 2018, file photo. / Courtesy of LG Chem

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LG Chem is stepping up efforts to achieve mutual growth with its partner firms by offering various kinds of support, the chemical and energy arm of LG Group said Wednesday.

To seek mutual growth with its subcontractors, LG Chem has set five strategic goals ― pursuing fair business transactions; providing financial support; helping subcontractors establish safer working environments; operating education programs to improve employee capabilities of the partner firms; and strengthening communication.

LG Chem's efforts for shared growth have been recognized nationwide as the company received the very best grade from the Korea Commission for Corporate Partnership (KCCP) for three straight years from 2015 to 2017.

The KCCP started to score mutual growth rates in 2011 in a bid to pursue mutual growth between large companies and their subcontractors.

To help its subcontractors fund their operations, LG Chem has offered various financial support programs such as direct financial support, a shared growth fund and family loan programs, raising a fund of 62.9 billion won ($53.2 million).

Its partner firms receive loans through the direct financial support program when they try to make new investments. The shared growth fund is a low-interest loan fund designed to resolve financial difficulties of its suppliers.

To foster social enterprises in the eco-friendly sector, LG Chem also has been operating LG Social Campus program together with LG Electronics.

Through the program, LG Chem has offered financial support, interest-free loans, workspaces and a talent nurturing program. More than 160 social enterprises have received 13 billion won in financial support over the past eight years.

This year, LG Chem plans to sign a mutual growth agreement with its 64 first vendors and a trilateral agreement for mutual growth with its first and second vendors.

For the partner firms who have experienced difficulties in improving energy efficiency while operating their businesses, LG Chem also has provided support for the development of the energy-saving management system. It has formed a “green” fund, which amounts to 4 billion won.

To help its suppliers secure sustainability, LG Chem has also provided education programs for employees of its partner firms. Those employees can attend LG Chem's polymer processing school (PPS) to learn about polymer processing technology, which is the manufacturing activity of converting raw materials into finished products.

They can also learn about the general principles of management, and take language courses and other education courses online. Since 2013, 1,190 employees from 254 partner firms have completed the online courses.