SEOUL, Aug. 31 (Korea Bizwire) — Samsung Electronics said Monday it has agreed with the commerce ministry to provide smaller firms with more efficient production facilities in line with government efforts to promote shared growth between big businesses and them.
Under the plan, the two will invest 15 billion won (US$12.6 million) each to share various production solutions and promote what they call “smart factories,” which are defined as facilities where all procedures are done in the most efficient way.
Samsung said it plans to improve production facilities at some 600 small and medium enterprises (SMEs) by 2017, hoping the project will become an example of shared growth.
The tech giant added it will open up an academy dedicated to promoting the smart factories, and provide technology and know-how related to the development.
The Ministry of Trade, Industry, and Energy said it plans to build around 10,000 units of smart factories by 2020, adding that it also plans to ask other conglomerates to join the move.
Local conglomerates, including Samsung Group, have been making efforts to expand support to smaller companies, apparently in line with the government’s push to promote such collaboration amid the slowing local economy.
Samsung also said earlier this year that it will invest 90 billion won to build a startup support center in Daegu, 302 kilometers southeast of Seoul.
SK Group, South Korea’s No. 3 conglomerate, also said earlier this month that the business group will provide various support to foster startups. This is seen as an apparent move to follow the government’s bid to promote “the creative economy policy,” which aims to integrate various industries to create new opportunities.