Seoul, July 23 (Korea Bizwire) – Samsung Electronics announced that they would be providing their 103 semiconductor partners with incentives worth a total of 14.2 billion won for the first half of the year.
This is the largest incentive to be offered in the first half of the year, both in the number of target companies and in the amount of money.
Since 2010, Samsung Electronics has distributed incentives to its partners for coexistence and shared growth. From 2010 to 2014, the company provided 46 to 100 companies with amounts ranging from 5 billion won to 20.9 billion won.
During the past five years, the number of target companies has more than doubled (2.3 times), with payments now 5.6 times higher than they were at the launch of the incentive program.
It is expected to be the biggest incentive this year, considering the latter half has yet to be paid. There are a total of 10,451 employees currently working at the first half’s target companies. To help revitalize the domestic economy, Samsung decided to divide the payment of incentives in two terms, instead of disbursing the entire amount at the beginning of the year.
Incentives for the partners fall under two categories, a ‘Safety Incentive’ to diminish accidents in environmental security infrastructure, and an incentive to boost productivity and product quality.
Oh Se-ryong, the CEO of NanoOne Tech, one of Samsung’s partners, talked about the positive effects of the incentive, saying, “It makes us feel that we are an important part of the semiconductor industry.”
Samsung Electronics also manages other programs for coexistence and shared growth. From 2013, Samsung has sent outstanding employees to partnership companies for two years to support technical development. KC Tech, one of the semiconductor partner companies, has developed superior equipment to that found at overseas suppliers, resulting in an import-substituting effect of 30 billion won. In addition, Samsung supports key suppliers of chemical substances to receive advice for environmental security from global professional consulting firms.
By Franicne Jung (email@example.com)