"Endure Together, Grow Together"... Electronics Industry Breaks a Sweat for Win-Win with Partners

[Asia Economy Reporter Ki-min Lee] Amid the worsening economic situation caused by the COVID-19 pandemic, major domestic electronics companies are taking the lead in fostering mutual growth with small and medium-sized enterprises (SMEs).

According to the industry on the 23rd, leading Korean electronics companies such as Samsung Electronics, SK Hynix, and LG Electronics are actively supporting and protecting SME technologies to build an industrial ecosystem and enhance competitiveness.

First, Samsung Electronics has been introducing the company's advanced technologies and disclosing patents since 2015 to improve the competitiveness of its partners and small and medium-sized enterprises. At a recent online technology briefing session, consultations were held regarding the transfer of a total of 8,000 patents in fields such as semiconductors, mobile, and home appliances that Samsung Electronics has opened. Additionally, Samsung Electronics started a smart factory construction support project in 2018 and plans to support more than 2,500 companies by 2022. So far, the project has been carried out for about 1,070 companies.

SK Hynix has also been selecting and supporting technology innovation companies among small and medium-sized enterprises with high potential for localization in the materials, parts, and equipment (SoBuJang) sector every year since 2017. For companies selected as technology innovation companies, SK Hynix jointly develops products for two years, experimentally applies them to SK Hynix production lines to evaluate performance, provides interest-free loans for technology development funds, and purchases a certain amount of the developed products.

LG Electronics has fully supported the deposit of 1,088 cases of partner companies' technical data from 2013 to last year to protect partners' trade secrets and core technologies. The deposit of technical data is a system that reduces the risk of technology leakage by storing partners' core technologies with the Korea Foundation for SMEs and Startups and the Korea Federation of SMEs. This allows partners to invest in technology development with peace of mind and guarantees the right to use core technologies even if they go bankrupt or close down. LG Electronics plans to support about 200 cases of technical data deposits this year as well. Since 2018, LG Electronics has also supported the construction of smart factory solutions to automate partners' production lines. Furthermore, it implements various support policies for mutual growth, including ▲manufacturing innovation consulting support ▲interest-free and low-interest loans ▲new parts development support ▲free training support.

Moreover, these companies are addressing partners' financial difficulties by advancing payment of delivery fees or shortening payment cycles. In the case of LG Electronics, through the Win-Win Payment System, it has expanded early cash conversion based on the credit of large corporations not only to first-tier partners but also to second-tier partners. According to LG Electronics, the payment amount settled with first-tier partners increased more than twofold from the 20 trillion won range in 2015 to the 40 trillion won range last year.

This content was produced with the assistance of AI translation services.