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LG announces mutual growth schemeBy Cho Ji-hyun
Published : May 12, 2011 - 19:04
LG Electronics said Thursday that it will invest 40 billion won ($36.86 million) in research and development with its subcontractors for the next five years as part of its mutual growth plan.
In a meeting with about 200 subcontractors at its R&D Center in southern Seoul, the company’s vice chairman Koo Bon-joon said they were all in the same boat to jointly rise as the No. 1 industrial player.
“Through this opportunity, we, together with the subcontractors, will become a strong firm that does not falter,” he said.
They signed an agreement that indicated they would make further moves to achieve mutual growth at the event.
Five outlined factors of LG’s mutual growth plan are strengthening its competitiveness, developing next-generation technologies, giving financial support, supporting firms with educational training and human resources and enabling process innovation.
As an initial step, it will form a consortium that focuses on a productivity enhancement partnership with the Ministry of Knowledge Economy and small- and mid-sized firms, according to company officials. The consortium will offer support on different stages of manufacturing, producing, shipping and productivity management, they said.
The flagship unit of LG Group will also make efforts to target overseas markets with its smaller partners by increasing the scale of operation funding and legal advice support.
In the sector of developing next-generation technologies, it will provide a five-year support ― 8 billion won in funding ― to tackle mid- and long-term projects involving light-emitting diode and solar power with the company’s subcontractors beginning this year.
The firm’s partners will be able to pitch in innovative and new project ideas by making use of an open innovation portal site (www.collaborateandinnovate.com), said company officials.
A total of 51.5 billion won will be provided as direct financial funding for this year and 275 billion won will be available as indirect support.
For educational training, the company will hold a job fair for its subcontractors and dispatch its own people to their companies to offer consulting services.
By Cho Ji-hyun (email@example.com)
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