SK Group expands shared-growth programs for subcontractors

SK Group announced on Thursday that its newest policies for shared-growth with its subcontractors went into effect.

One of the nation’s biggest conglomerates, SK Group came up with co-prosperity projects for medium-sized and smaller subcontractors in three sectors, education, finance and technology. The new policies are meant to be supportive of the retainable management growth of SK’s subcontractors, the conglomerate said. SK Group had established a shared-growth committee in the fall of 2008 to aid its subcontractors by “teaching them how to fish rather than giving them a fish,” SK Group said in a press release. 

For the education sector, SK Group will add a study-overseas program in China to the curriculum of SK Shared-growth Academy, the group’s training institution for staff of its subcontractors. The academy employs e-learning programs, CEO seminars and a management development program to train 120 middle management staff biannually.

For finance, the conglomerate’s new fund-aid policies include increasing the company’s revenue for its sub-partners.

“By this year, SK will more than double the amount of its ‘Win-win Fund’ to 321 billion won ($3 billion,) providing low-interest loans to SK’s medium-sized and smaller subcontractors. About 400 affiliates borrowed 182.6 billion won ($161.7 million) through the ‘Win-win Fund.’ They got the interest rate reduced by around 1.7 percent,” SK Group said.

Among the expanded financial policies for subcontractors is “Win-win Growth Insurance” to help prevent the bankruptcy of one subcontractor leading to a domino effect.

For technological support, the conglomerate revealed plans to establish a technology support center where middle-sized and smaller sub-partners can freely develop new IT technologies. The group will hand over more patented skills to these sub-partners free of charge and systematically assist them to protect their core technologies.

“This year’s shared-growth plans will focus on shedding light on not only our direct subcontractors but also the second and third-hand sub-partners,” said Lee Man-woo, executive director of public relations.

By Chung Joo-won (joowonc@heraldcorp.com)