LG Innotek (CEO Ung-Beom Lee) held a signing ceremony for the 2013 “fair trade and shared growth” agreement at the Parts and Materials Research Center in Ansan, Gyeonggi Province on February 26.

With CEO Ung-beom Lee and presidents of 34 partner companies including New Flex CEO Woo-hyun Lim in attendance, the Company signed an agreement to lay the foundation for fair trade and shared-growth.

LG Innotek promised that it will continue engaging in fair trade by following “four guidelines to establish order in subcontract transactions between conglomerates and small and medium-sized enterprises” as set by the Fair Trade Commission.

The Company also announced that it will provide assistance to enhance financial soundness of partner firms, including improvement of payment conditions for supplies, and operation of a cooperative fund for shared growth. It is set to reduce the duration of time required for settlement to make payment to suppliers early on, and has more than doubled the size of its cooperative fund for co-growth from last year to 37 billion won. 

LG Innotek will also expand the operation of a system to share achievements, which it introduced last year to maximize the effect of joint innovation campaigns. The system to share achievements refers to a program, in which a conglomerate jointly implements improvement of production process to cut costs, and development of new technologies with subcontractors, and then share achievements from such cooperative activities. The Company operated the system with 25 firms last year, and has expanded partners to 34 this year.

Through the system to share achievements, LG Innotek plans to create success stories to secure win-win situations by proactively supporting joint innovation projects.

At the signing ceremony, CEO Ung-beom Lee stressed, “In order to achieve business success, enhancing competiveness of partner companies is a prerequisite,” adding, “We will make all-out effort to establish a system to achieve sustainable co-growth again in 2013, and thereby proactively assist partner firms to boost their global competitiveness.”

Meanwhile, LG Innotek will continue to strengthen its conventional programs to support partner firms, including the management doctor program, and the independent research group, as well as R&D assistance, education and training, and communication activities.
 

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[Photo caption]

Executives and staff members from LG Innotek and CEO of the Company’s partner firms pose for a commemorative photo, and renew their commitment for shared growth, after signing an agreement on shared-growth on February 26. (CEO Ung-beom Lee of LG Innotek is seen fifth from left, front row; and CEO Woo-hyun Lim of New Flex fourth from left, front row)