LG Innotek, the leading components manufacturer in the LG Group, signed the 2024 Fair Trade and Win-win Growth Agreement and solidified its effort to collaborate with more than 100 partner companies. The agreement was finalized on 2024 Win-win Growth Partnership Day and it aims to co-prosper with partner companies and share in each other’s growth. In accordance with the agreement, LG Innotek set up a comprehensive support system that includes finance, education, technology, and management to protect partner companies. In finance, LG Innotek established a win-win growth fund worth 143 billion won this year alone. This fund is providing partner companies with capital which they can borrow at favorable interest rates in the market. These loans are expected to be a lifeline for small and medium-sized enterprises (SMEs) that are having a hard time borrowing from commercial banks.
At the same time, LG Innotek is strengthening the capabilities of each of its partner companies to help them stand on their own. In terms of education, it is opening the Partner Capability Enhancement Training Center to provide practical training and knowledge that it has on it to employees from partner companies. This will be aimed at improving their skills in the field and knowledge of the market so that they can be more competitive. In terms of technology, LG Innotek will partially support the cost associated with automation of partner companies’ facilities so that they can have better technological skills and increase their productivity to remain competitive.
This agreement further shows LG Innotek’s willingness for fair trade and its proactive stance on the continuing growth and stability of the partner network. By steadfastly backing the growth of its partner companies, it is creating a supply chain that is strong enough to handle any challenges coming up not too far down the road. In showing an example for taking the initiative on going for symbiotic growth with business partners, it may potentially lay the groundwork for entire industries to be able to grow and function in a sustainable fashion that aids their growth in the long term.
