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“Partner companies are POSCO’s competitiveness”… POSCO Group expands win-win cooperation with 5,300 partners
🇰🇷 South Korea /Economy & Trade

“Partner companies are POSCO’s competitiveness”… POSCO Group expands win-win cooperation with 5,300 partners

From Dong-A Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • POSCO Group signed a "win-win" agreement with 5,300 partner companies to expand mutual growth initiatives beyond first-tier suppliers.
  • The agreement focuses on improving payment terms, activating a mutual payment system, and supporting the competitiveness of second and third-tier suppliers.
  • The Fair Trade Commission praised the initiative as a crucial step towards a more innovative industrial ecosystem, moving away from a price-reduction-centric growth model.

POSCO Group has formalized a significant "win-win" agreement aimed at fostering mutual growth across its extensive supply chain, encompassing approximately 5,300 partner companies. The initiative extends support beyond traditional first-tier suppliers to include second and third-tier partners, marking a strategic shift in how the group engages with its collaborators.

The name of the partner company is precisely the competitiveness, growth engine, and future of POSCO Group.

— Lee Ju-taePOSCO Holdings President emphasized the critical role of partners in the group's success during the agreement ceremony.

The core of the agreement lies in four key action items: improving payment conditions, activating a mutual payment system, incentivizing first-tier partners who engage in win-win cooperation, and actively supporting the enhancement of partner companies' competitiveness. POSCO Group commits to paying partners in cash or cash equivalents within an average of 10 days, and will encourage first-tier partners to do the same for their second-tier counterparts, and so on, within 30 days.

In the face of an unstable supply chain and immense industrial change, sustainable growth and future competitiveness cannot be guaranteed without robust win-win cooperation. We will further advance win-win cooperation starting from this agreement.

— Lee Ju-taePOSCO Holdings President highlighted the necessity of collaboration for future growth and competitiveness.

Presiding over the signing ceremony, Fair Trade Commission Chairman Joo Byung-ki lauded the agreement as more than just a support measure. He described it as a pivotal starting point for transforming the market system and industrial competitiveness, advocating for a move away from a growth model solely focused on price reductions towards one that fosters innovation and creativity. Joo emphasized that such win-win cooperation is not merely a cost but an investment in POSCO Group's sustained innovation and a catalyst for elevating the entire industrial ecosystem.

The win-win agreement is not simply a support measure for partner companies, but a starting point for transforming the market system and industrial competitiveness.

— Joo Byung-kiThe Fair Trade Commission Chairman praised the agreement's strategic importance for the industry.
DistantNews Editorial

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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