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| POSCO's resort complex for employees at Alpensia Resort in PyeongChang County, Gangwon Province / Courtesy of POSCO |
By Nam Hyun-woo
Hyundai Motor Group and POSCO each announced programs to support their respective partner companies, in a bid to promote the value of mutual growth, the conglomerates said, Thursday.
According to Hyundai Motor Group, the carmaker will launch a support program worth 1.7 trillion won ($1.5 billion) for its partner companies.
The program is highlighted by an early payment scheme for R&D costs for suppliers. So far, the carmaker has been paying R&D costs for suppliers when an R&D project is finished, but the fresh program will pay half of the cost at the start of the project and the remainder after the project.
Also, Hyundai Motor Group will pay mass production costs in a lump sum after a part's mass production starts, in order to alleviate the early stage financial burden of suppliers.
The company expects that the benefit suppliers can enjoy in the next five years will be valued at 1.46 trillion won.
Also, the company will set up a future growth fund worth 140 billion won, which is aimed at stabilizing suppliers' management and supporting their R&D projects.
Along with the financial support, Hyundai Motor pledged a series of education programs for its partner companies so they can successfully adapt to the changes in the automobile industry.
"Hyundai Motor will continue making tangible support for suppliers so they can actually feel the advantage and successfully cope with the industry's paradigm shift," a Hyundai Motor official said.
On the same day, steel giant POSCO also said it will share its resorts and other vacation facilities for its employees with 33,000 employees at group affiliates and partner companies.
For this reason, the company purchased modular buildings in Alpensia Resort in PyeongChang County, Gangwon Province, which were used as the Media Village for the 2018 PyeongChang Olympic Games across the province.
"By securing more resorts, employees at not only POSCO but also its affiliates and partner companies can use them together," a POSCO official said. "This will improve employee welfare as well as promote the corporate value of mutual growth between conglomerates and small- and medium-sized enterprises."
