Posco earns top marks for shared growth with SMEs

South Korean steel giant Posco Group said Monday that it has received the highest grade in the 2023 Shared Growth Index Evaluation for five consecutive years.

Earlier this month, the 80th Korea Commission for Corporate Partnership released the win-win index for 218 large-sized companies. The index encourages shared growth within the industry by measuring large enterprises’ efforts to make room for small and medium-sized enterprises.

Posco scored highly for its clear and fair transaction practices and for fostering cooperation with business partners. The company has implemented eight shared growth programs to strengthen its supply chain and promote the sustainable growth of SMEs.

One key initiative is Posco’s benefit-sharing system, where conglomerates and SMEs jointly manage tasks and outcomes. This collaboration enhances the profitability and technological capabilities of SMEs while Posco secures high-quality products. Until last year, Posco had completed 5,521 projects with 2,316 SMEs across various sectors, paying 803 billion won ($579 million) for their contribution.

Posco has also helped SMEs bring innovation and introduce the Smart Factory system. Since 2013, the company has invested 39.3 billion won to support 2,234 enterprises, enhancing their profitability and shortening lead times.

Since 2021, Posco’s shared growth team has assisted SMEs in improving production facilities, developing technologies and addressing environmental, social and governance issues. The company said nearly a hundred SMEs have participated in 300 projects, generating a financial benefit of 33.9 billion won.

“We believe that building a sustainable supply chain is integral to strengthening the Korean steel industry. We will continue our projects to support the SMEs with their management, product quality and productivity,” said a Posco official.