LG Chem, Awarded Best Company at “Joint Growth Index” for 5 Consecutive Year2020.09.08
■ Made facility and R&D investments via KRW 250 Bn low-interest and interest-free loan funds.
■ Granted incentives to innovate productivity and encourage employment to enhance self-sufficiency of partner enterprises.
LG Chem announced it awarded the “best” grade in “2019 Joint Growth Index” for 5 consecutive years according to the Commission on Shared Growth for Large and Small Companies on this Sep. 8th.
The Joint Growth Index annually run by the KCCP is an index of measuring how large corporations treat their medium and small subcontractors and of evaluating their performance in fair trade agreement, divided into the 5 grades(best, good, fine, average, unsatisfactory).
This year, 35 enterprises among 200 candidates received the best grade. LG Chem has even maintained its position as the “Best Honorary Company” only given to those winning the best grade for 3 consecutive years.
LG Chem said it has proactively contributed to increasing the competitiveness of its partner companies via financial support, productivity enhancement support, and others, resulting in receiving the best grade this year.
More specifically, LG Chem has been providing the partner enterprises with KRW 250 Bn financial support for smooth cash flow.
LG Chem has run operating funds for its subcontractors by raising “Win-win Fund” of KRW 62.9 Bn low-interest loan programs in 2010. In 2019, it launched KRW 43.2 Bn interest-free loan programs to support key R&D projects and others run by its subcontracting companies. It also established “Investment Support Fund” of KRW 150 Bn low-interest loan programs with Korea Development Bank(KDB) to lessen the burden of facility investment cost for its subcontractors along with intensive support.
Furthermore, LG Chem has provided its partner companies with consulting service for productivity enhancement, support for building of smart factory, and incidental expenses required for export to bolster their self-sufficiency while continually expanding the support in employment incentives to lighten their labor costs and secure talented personnel.
Besides the abovementioned supports, LG Chem also launched an energy partnership projects with its partner enterprises experiencing difficulty in improving energy efficiency due to the shortage of professionals and funds. It discovered approximately 340 energy saving items(around KRW 4.8 Bn) by implementing energy diagnosis on its partner companies from 2012 to 2019.
LG Chem’s Vice President Jun Sung Park of Corporate Affairs Department said, “we have expanded our support for our partner companies to increase their competitiveness by establishing a fair trade culture, and we will focus more on activities improving sustainable growth with them in the economic, societal, and environmental aspects.”