Lotte Chemical and Win-Win Growth Committee Sign 'Autonomous Agreement to Resolve Polarization'

Operation of a 3-Year Win-Win Growth Program Worth 326 Billion KRW Including Contributions to the Win-Win Growth Fund and Credit Guarantee Support for Technological Innovation

(From left) Kim Gyo-hyun, Vice Chairman of Lotte Chemical; Oh Young-kyo, Chairman of the Shared Growth Committee; Wonrim Shin Sung-yeop, CEO. Photo by Lotte Chemical

[Asia Economy Reporter Choi Seoyoon] Lotte Chemical announced on the 8th that it has signed the 'Polarization Resolution Voluntary Agreement' together with the Win-Win Growth Committee and partner small and medium-sized enterprises (SMEs).

This business agreement was established to support the competitiveness of partner SMEs and to resolve polarization between large corporations and SMEs. At the signing ceremony, a plaque of appreciation was presented to four companies?Wonlim, Yongho Machinery Technology, Daheung Industrial, and Kots?selected as excellent partners in Lotte Chemical's Win-Win Growth Program.

In 2019, Lotte Chemical signed the 'Innovation-Driven Wage Gap Resolution Agreement' with the Win-Win Growth Committee to address wage disparities and promote win-win growth between large and small-medium enterprises. As the three-year agreement period expires this year, the two organizations have re-signed the 'Polarization Resolution Voluntary Agreement.'

According to the agreement, Lotte Chemical plans to operate a win-win cooperation program worth a total of 326 billion KRW over three years, including contributions to the Win-Win Growth Fund, credit guarantee support for partner SMEs, overseas market development, and technological innovation support.

Additionally, in cooperative transactions (subcontracting, consignment, supply, services, etc.), Lotte Chemical will adhere to the 'Three Principles of Proper Payment' and operate a 'Delivery Price Adjustment Consultation System.' If partner companies request adjustments due to changes in delivery prices or other factors during the transaction period, the company will promptly review and conduct mutual consultations.

Partner SMEs have committed to ▲strengthening innovation efforts such as research and development (R&D) and productivity improvement, ▲improving product and service quality and enhancing price competitiveness, and ▲improving employee working conditions and expanding new employment.

The Win-Win Growth Committee will provide opportunities for technical and purchasing consultations to ensure the implementation of polarization resolution and win-win growth activities between Lotte Chemical and partner SMEs, as well as discover and promote best practices.

Kim Kyohyun, Vice Chairman of Lotte Chemical, said, "In the current environment of low growth and economic uncertainty, cooperation between companies has become an essential condition. We will continue to contribute to strengthening our partners' competitiveness, improving the welfare of our members, and establishing a fair trade order."

Oh Younggyo, Chairman of the Win-Win Growth Committee, stated, "Through win-win growth with partner SMEs, we hope to strengthen the overall competitiveness of the industry and see Lotte Chemical leap forward as a global integrated chemical company."

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