Mutual Development Programs
We make efforts to make improvements together with participating companies and share the outcome on a 50:50 ratio. Through this system, participating companies can voluntarily seek corporate overhaul, while POSCO M-Tech can secure long-term competitiveness and improve quality of our products.
Benefit Sharing
We offer various programs, such as technological partnerships, development of new products with purchase conditions, and joint/investment development, to secure global competitiveness of our entire supply chain through improved technological competitiveness of SMEs.
How It Works
- Project
selection - agreement is
signed - Project
implementation - Performance
verification
and rewards
Eligibility
- - All suppliers currently working with the POSCO Group.
- - Unregistered suppliers can participate after conducting a fact-finding survey.
Incentives Provided to Participating Companies
If they have earned financial profit by implementing a project, they will be compensated in cash for 50% of the amount reduced and offered a long-term contract for three to five-year deals.
Patent Support Programs
A program designed to help SMEs use intellectual property rights including patents.
Joint Technological Development for New Technology/Products
oint development by combining POSCO M-Tech’s technology and know-how with SME’s technology.
(We examine potential joint development and investment opportunities based on proposals from SMEs.)
(We examine potential joint development and investment opportunities based on proposals from SMEs.)
Joint Patent Application with POSCO M-Tech and SMEs
We support costs incurred from joint patent application with POSCO M-Tech.
Technical Data Deposit System
A system that protects the technology of partner companies in trade between large companies and SMEs by depositing important technical data into a third party, Large and Small Business Cooperation Foundation. Large conglomerates that are supplied with products can ensure a stable supply and maintenance service even when the supplier closes business due to bankruptcy.
System Overview
| Coverage | Support Provided |
|---|---|
| Technological information (Facility and product blueprint, how to produce or manufacture products.) |
Support for deposit costs to alleviate the financial burden of SMEs. (KRW 300,000/case, one year) |
| Management information (Confidential documents related to the operation and management of the company.) |
Application Process
- Trilateral contract
(developer, user, foundation)) - Technological data is deposited
(developer → foundation) - Technological data is issued
(as needed)
We run diverse programs to help SMEs recover from financial strain and improve liquidity with financial support programs and network loans.
Cash Payment for Full Purchase
We pay with cash in full for the products delivered for improved liquidity for SMEs.
Payment Terms
| Category | Payment Standards | Payment Cycle |
|---|---|---|
| Materials/Cooperation Equipment/Construction cost |
- SMEs : Full cash payment - Large conglomerates, etc : Cash payment for KRW 30 million, promissory note for excess payment for 60 days (based on issuance of tax invoice). * As for subcontracts, we comply with relevant laws and regulations by applying the payment standards of the primary contractor. * Where there are separate standards by SMEs or in the contract, we apply the payment terms for large conglomerates if the company is a member of a conglomerate with limited access to mutual investment. |
Twice a week (Tuesdays and Fridays) |
| Resource/product Purchase cost |
- Costs for supplementary materials for steel (excluding domestic and foreign scrap). In Korea : Payment in cash (when all products have been warehoused one day before the withdrawal date). Abroad: Payed based on contract terms |
POSCO Group
Loan Support Fund
Loan Support Fund
We have a Special Fund for Mutually Beneficial Cooperation and Partner Support Fund aimed at relieving financial pressure of SMEs.
Special Fund for Mutually Beneficial Cooperation
Banks offering the fund: Industrial Bank of Korea, Woori Bank, Korea Development Bank.
Loan rate: Cheaper than the general interest rate of the company applying for the loan by 0.8% or higher.
Eligibility: Partners of the POSCO Group and subcontracting SMEs.
Loan rate: Cheaper than the general interest rate of the company applying for the loan by 0.8% or higher.
Eligibility: Partners of the POSCO Group and subcontracting SMEs.
Partner Support Fund
Banks offering the fund: Daegu Bank
Loan rate: Cheaper than the general interest rate of the company applying for the loan by between 0.5% and 1.0%.
Loan limit: 1/3 of sales for working capital, within 80% of the facility fund required.
Eligibility: Partners of the POSCO Group and subcontracting SMEs.
Loan rate: Cheaper than the general interest rate of the company applying for the loan by between 0.5% and 1.0%.
Loan limit: 1/3 of sales for working capital, within 80% of the facility fund required.
Eligibility: Partners of the POSCO Group and subcontracting SMEs.
Advance Payment for Equipment Purchased and Interim Payment
We provide advance and interim payments to improve liquidity of funds by SMEs because of the long period required to produce the equipment ordered by POSCO M-Tech.
Payment Standards
| Category | Advance Payment | Interim Payment |
|---|---|---|
| Payment Rate | 20% | Based on the progress made |
| Eligibility | Companies with a contract amount of KRW 30 million or higher. | Companies with a contract amount of KRW 30 million or higher. / Companies with a contract period of 90 days or longer. |
We offer programs, such as Benefit Sharing, QSS Consulting, and Management Consulting, based on trust with SMEs.
Innovative Growth Support Group
We support innovative growth of SMEs through support activities where our employees participate in using the capabilities and infrastructure of each division.
Support target
Cooperating SMEs (suppliers, subcontractors)
Support Areas
Financial accounting, safety, environment, innovation, business ethics, fair trade, etc. All fields where there is a need for suppliers
How to apply
Experts in the relevant field for each department of POSCO M-Tech provide support in the form of consulting, one-day training, etc.
Application process
- SMEs
Application
for participation - Task
effectiveness
Review - Support
group-small business
Matching - On-site support
Activities
Supporting SMEs to Enter the Global Market
We take part in events, such as trade fairs, with partner SMEs to help them enter the overseas market.
We provide opportunities to learn to SME employees and their families free of charge based on the POSCO Group’s exceptional human resources.
Support Project for Smart Factories of the POSCO Group
We seek to revamp SMEs and advance productivity by eliminating waste through the adoption of intelligent technology and optimization of the entire production process using information and communication technology, such as IT, SW and IoT.
Eligibility
Partners of the POSCO Group, customers, suppliers
Support Period
Six months
Support Provided
On-site diagnosis and consultation by professional consultants.
Areas of Support:
Energy Efficiency Management System: Reduces power, improves energy efficiency, performs diagnosis on combustion efficiency
Production Line Automation System: Remote control of production lines, alarm feature for supporting duties, automatic feeding system
Work Order On-Line Management: Bar Code, RFID, drawings, etc.
Production Line Automation System: Remote control of production lines, alarm feature for supporting duties, automatic feeding system
Work Order On-Line Management: Bar Code, RFID, drawings, etc.
Cost
Covered by POSCO (no payment required by SMEs).
Customized Consulting by the POSCO Group
Under this program, which seeks mutual growth with SMES, POSCO employees with professional capabilities provide consulting to address vulnerabilities or chronic issues of SMEs to support them in improving their essential capabilities and competitiveness.
Coverage
SMEs working with the POSCO Group as primary and secondary contractors.
Areas of Support:
Safety, energy, IT and other areas as needed.
How to Apply
POSCO’s working level professionals visit SMEs that have applied for consulting to conduct detailed diagnoses and provide improvement measures.
- Confirmation of
consulting target
/Identification of needs - Precision
Diagnosis - Benchmarking
/training
(if needed) - Improvement and
Monitoring
POSCO Group SME Consortium
A program designed to strengthen the job capacity of employees of SMEs that lack educational infrastructure and train key experts using POSCO’s training facilities, manpower and system.
Target Trainees
Candidate SMEs for Companies for Priority Support, with 500 employees or less in manufacturing sector and 300 employees or less for other sectors.
Areas of Training
Group classes and eLearning to train SME employees and develop their job competency (e.g. leadership, technical courses).
How to Apply
- Online site
Access - Click the Open
menu on the left side
of the homepage - 「Guide to
group education」
「Guide to e-learning」
Access - The desired
education
Apply
Opportunities to Join In-House Training Programs
SMEs are given a chance to participate in training programs currently offered at the Company.
We offer various programs, including medical support and the ombudsman center, to support SMEs in many areas.
Job Matching of Corporate Citizens at the POSCO Group
We provide job training to young job seekers and match them with our partner companies who need new workers, along with other support.
How It Works
We match graduates of POSCO’s training courses with partner companies who are hiring high school or college graduates.
How to Apply
- Partner companies
Recruitment
demand survey - Matching trainees /
Connecting partners - Interview and
final selection
Mutual Development Support Group
The management visits our key partner companies to listen to their voices and complaints to seek ways to improve the situation.
Activities
We visit production sites, encourage workers and listen to their needs for improvement.
Mutual Development Meeting
We hold regular meetings for information exchange and increased communication with partner companies (semi-annual meeting).
Packing Material Suppliers
We share information on the quality and delivery of packing materials (e.g. non-conforming process).
Outsourcing Partners
We share SRM evaluation standards and quality of products produced in joint projects. We also listen to the voice of customers in relation to the partnership.
Partners Day
An annual festival of partnership where we share and communicate the outcome of joint projects that have contributed to mutual development.
Event Overview
Date: Every November
Chaired by: POSCO M-Tech CEO
Participants: Representatives of major trading partners.
Chaired by: POSCO M-Tech CEO
Participants: Representatives of major trading partners.
Event Information
An awards ceremony for outstanding partners, an agreement ceremony for practicing fair trade and mutual growth.