Leading Business Groups Spend 1.7 Trillion Won for Joint Growth with Partner Firms

The 30 major business groups in Korea, including Samsung, Hyundai Motor, SK, LG, POSCO, Lotte, Hanwha, and GS, spent 1.7161 trillion won (US$1.6475 billion) this year for the purpose of joint growth with their partner firms.

The amount increased by 7.6 percent, or 121.9 billion won (US$116.9 million), compared to the previous year. They are planning to utilize their financial resources mainly to help the firms make inroads abroad so that they can turn themselves into global players. 

On April 7, the Federation of Korean Industries (FKI) and the National Commission for Corporate Partnership (NCCP) held a meeting at the FKI building in Yeouido, Seoul to announce the plans. The conference was attended by FKI Chairman Heo Chang-soo, Minister of Trade, Industry & Energy Yoon Sang-jik, NCCP Chairman Yoo Jang-hee, and over 150 CEOs and executive members in the corporate sector. 

The leading business groups are going to provide 559.2 billion won (US$536.8 million) for sale and purchase support, 452.7 billion won (US$434.4 million) for partner firms’ productivity enhancement, and 285.5 billion won (US$273.9 million) for R&D assistance. The amount for overseas market penetration was increased by 16.5 percent year-on-year, and that for payment and loan guarantee and employee training were stepped up as well by 11.5 percent and 10.5 percent, respectively.