Korea Hydro & Nuclear Power Co., the state-run nuclear power plant operator, recently announced a plan to accelerate sustainable growth.

The move is in line with the government’s ongoing efforts to promote shared growth with small-and medium-sized enterprises.

KHNP said it had started with reorganizing and expanding related departments and was working to enhance technical competence and reform its purchasing methods.

The company has come up with several measures to improve small firms’ cashflow. Last year, it provided around 140 billion won ($120 million) of advanced payments to SMEs to help them through financial difficulties and spent 250 billion won in total on liquidity assistance.

This year, the company has already deposited 20 billion won in a fund for low-interest loans for SMEs and plans to give financial support of more than 300 billion won.

In addition it makes 80 percent downpayments to small firms in the form of operating capital under the “Power Energy Loan” program.

“We believe that assisting joint research and development activities with SMEs will strengthen the competitiveness of domestic equipment as well as shorten the time of localizing foreign-made equipment to home-grown ones,” the company said in a press release. 

“Also, activities such as cooperating with other facilities, securing investment capital accounting for 30 billion won and organizing an upcoming exhibition, which will be held at the BEXCO in Busan, are all in a line with its efforts to rev up SMEs’ growth.”

To secure market penetration, KHNP plans to provide purchasing advisory services this year and around 315 businesses are expected to participate. Starting with the first exhibition on April 2, 59 SMEs participated and showed off their products in four exhibitions in April.

KHNP also helps businesses enter new overseas markets and lower export risks.

It has helped SMEs acquire American Society of Mechanical Engineers certification and assisting in product liability. It also helps them set up overseas branches with Korea Trade-Investment Promotion Agency.

KHNP has already acknowledged the SMEs’ strong ties with their subcontractors.

Around 400 SMEs work with subcontractors. Considering this, it has identified subcontractors’ capital limits as one of the difficulties to be solved.

KHNP has also worked to improve staff quality.

One of its efforts is providing in-service training for free. Last year, it educated 993 people through 27 different courses. It runs the “Techno Doctor” program, through which many retired experts are sent to SMEs to provide practical know-how.

It also has a mentor program called “Atom Mentor” in which technology experts help enhance SMEs’ technological competitiveness and renovate their management.

This year, the company plans to expand its educational support for SMEs.

For this, the firm opened “Shared Growth Academy” on April 1 to educate executives and workers from its subcontractors.

Company officials said KHNP is determined to take the lead in spreading shared growth culture by participating in government-led projects.

By Choi In-jeong (injeongchoi@heraldcorp.com)