SK Hynix said Friday that it held a general meeting with its suppliers at the chipmaker’s headquarters in Icheon, Gyeonggi Province aimed at further strengthening their business relations.
SK Hynix CEO Park Sung-wook met with 50 chief executives of its vendors to seek ways to boost mutual benefits and share incentives from brisk earnings.
“SK Hynix was able to post record earnings last year due to support from suppliers,” CEO Park said.
“We will aim to create value through mutual growth by increasing our communication with our partners.”
The chipmaker made a turnaround with its operating profit at 3.38 trillion won last year. It had sales of 14.16 trillion won in 2013, up 39 percent from a year earlier. It returned to a net profit of 2.87 trillion won in the same period.
Koh Suk-tae, CEO of KC Tech, a listed semiconductor equipment maker, was chosen to lead the group of SK Hynix’s suppliers for win-win partnerships.
“We will closely cooperate so that every one of SK Hynix’s partners can sustain growth,” Koh said.
The company said it will share business development plans and a technology roadmap with its vendors so that they can stay ahead in the market and better serve its customers.
SK Hynix will reward its vendors that have contributed to mutual growth, and plans to further assist its suppliers in technology development and patents.
The memory chip manufacturer will work with parent company SK Group’s committee promoting corporate partnerships to shorten the time it takes to settle financial transactions between SK Hynix and the suppliers.
SK Hynix said it will expand the program for its second-tier vendors, and hold business seminars for chief executives of its suppliers regularly.
SK Hynix disclosed in a regulatory filing on March 20 that Park will remain as the company’s chief executive as former SK chairman Chey Tae-won stepped down from the executive post.
SK Telecom, the largest shareholder of SK Hynix, meanwhile, disclosed last Wednesday that it reduced its stake in the chipmaker from 22.72 percent to 22.38 percent.
By Park Hyong-ki (email@example.com