LOTTE Chemical-Korea Commission for Corporate Partnership Enters

‘Voluntary MOU for Relieving Bipolarization’

█ Entered tri-party MOU of LOTTE Chemical, Korea Commission for Corporate Partnership, and cooperating SMEs…

    Agreed to strengthen competitiveness of partner companies and to work on relieving bipolarization between conglomerates and SMEs

█ LOTTE Chemical and Korea Commission for Corporate Partnership invests in the mutual growth fund and supports credit guarantee

    and technological innovation to operate a mutual growth program worth 326 billion KRW over the next three years

█ LOTTE Chemical Vice Chairman Kim Gyo-hyun, "We will contribute to strengthening the competitiveness of partner companies,

    improving welfare, and establishing a fair trading order through a voluntary MOU for relieving bipolarization”

█ Korea Commission for Corporate Partnership Chairman Oh Young-gyo, "We thank LOTTE Chemical for participating in this MOU

    and its efforts to reinforcing mutual growth of partner companies”

LOTTE Chemical (CEO and Vice Chairman Kim Gyo-hyun) announced on the 8th that it entered a ‘voluntary MOU for relieving bipolarization’ together with the Korea Commission for Corporate Partnership (KCCP) and cooperating SMEs.

This work MOU was provided as plans to support strengthening the competitiveness of cooperating SMEs and to relieve the bipolarization between conglomerates and SMEs. At this MOU, appreciation plaques were given to four companies such as Wonlim, Yongho Mechanical Technology, Daeheung Corporation, and Koch that were selected as outstanding participating partners of the LOTTE Chemical mutual growth program. 

In 2019, LOTTE Chemical entered a ‘innovation-leading wage gap relief MOU’ with the goal of relieving wage gaps and mutual growth between conglomerates and SMEs together with KCCP. As the three-year MOU is slated to expire this year, the two institutes entered a ‘voluntary MOU for relieving bipolarization.’

According to this agreement, LOTTE Chemical plans to invest in the mutual growth fund for cooperating SMEs, provide credit guarantee support, while also supporting the pioneering of overseas sales channels and technological innovation to operate a mutual cooperation program worth a total of 326 billion KRW over three years.

Furthermore, it reaffirmed that it would abide by the ‘3 rules for proper payment’ for cooperating transactions (subcontracting, consigning/consignment, delivery, service, etc.) and operate the ‘supply cost adjustment negotiation system’ to promptly review and mutually discuss applications by cooperating companies for adjusting prices due to changes such as supply costs during transaction periods.

Cooperating SMEs agreed to △step up innovation efforts such as in R&D and improving productivity, △enhancing product and service quality and price competitiveness, and △improving work conditions for employees and creating more new jobs.

KCCP will provide a window to provide consulting on technology and purchasing in order to relieve bipolarization and practice mutual growth activities between LOTTE Chemical and cooperating SMEs, while finding and promoting outstanding cases.

LOTTE Chemical Vice Chairman Kim Gyo-hyun commented, “In the recent low-growth trends and economic uncertainties, cooperation among companies has become essential. We will continue to strengthen competitiveness of partner companies and contribute to improving welfare of members and in establishing a fair trade order.”

KCCP Chairman Oh Young-gyo stated, “LOTTE Chemical reinforced mutual growth the cooperating SMEs amidst uncertainties of the global economy. I would like to thank LOTTE Chemical for joining this MOU again after the one in ‘19.” He added, “I hope that through mutual growth with cooperating SMEs, we will be able to strengthen the competitiveness of the entire industry, and hope that LOTTE Chemical will leap into becoming a global general chemical company.”