POSCO Performance Sharing System 20 Years... 825.5 Billion KRW Support to 2,344 Partner Companies

First Introduction of Performance Sharing System in Korea in 2004
"Established as the Standard Model for Win-Win Growth with SMEs"

POSCO announced on the 8th that it has paid a total of 825.5 billion KRW over 20 years as compensation to 2,344 partner companies that carried out industrial site improvement tasks such as cost reduction through the performance-sharing system.

POSCO introduced the performance-sharing system in 2004 to promote win-win growth between large and small-medium enterprises. It is a system where partner companies and industrial sites jointly carry out necessary improvement tasks and share the results. When financial performance is generated through task implementation, POSCO compensates 50% of the savings to the participating companies and provides various incentives.

From July 2004, right after the introduction of the performance-sharing system, until June this year, POSCO has carried out a total of 5,565 improvement tasks in various areas such as localization, cost reduction, safety and environment, and sales expansion with 2,344 companies. Participating companies can secure technological capabilities and improve profitability, while POSCO can receive products from companies with expertise and capabilities, thereby strengthening mutual competitiveness in the long term.

POSCO announced on the 8th that through the performance-sharing system introduced in 2004, it has jointly carried out a total of 5,565 improvement tasks with 2,344 consigned companies and paid approximately 825.5 billion KRW in performance rewards. From the left in the photo are the hydrogen sulfide purification facility jointly developed and installed by POSCO and Hyunbosan Industry, the zinc removal equipment jointly developed by POSCO and Taeyoung ENG, and the stainless steel filler jointly developed by POSCO, Hanatech, and ENM.
[Photo by POSCO]

The POSCO-type performance-sharing system has been recognized as a model case of win-win growth between large and small-medium enterprises, leading the government to enact the “Act on the Promotion of Mutual Growth between Large Enterprises and Small and Medium Enterprises” in 2006 and contributing to the spread of the performance-sharing system throughout the industry. Currently, 593 companies, including domestic large corporations and public enterprises, operate the performance-sharing system.

Through the performance-sharing system, POSCO developed hydrogen sulfide refining equipment with Hyunbo Industry to improve profitability, succeeded in mechanizing tank pig iron removal work with Taeyoung ENG, and accumulated various success cases such as applying stainless steel fillers in the hot rolling water treatment process together with Hanatech and ENM.

POSCO stated, "We will continue to provide a foundation for partner companies to grow through the performance-sharing system and strengthen mutual competitiveness," adding, "We will coexist with small and medium enterprises by operating various win-win growth programs such as smart factory construction support projects, Steel ESG Win-Win Fund, Win-Win Growth Support Group, and venture support."

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