Progress Direction of Accompanied Growth
SK hynix qualitatively improves mutual technological competitiveness through constant cooperation with cooperative firms based on a company culture of fair trade, safety, security and ethical management and strives to sincerely make an effort together to solve social problems.
Win-Win
Develop global competitiveness
Create shared value through mutual qualitative improvements to technological competitiveness
Social contributions
Foster social enterprises(Build a sustainable business environment)
Fully establish a fair trade culture
Fully establish a fundamental culture(Ethics management, environmental safety, industrial security)
Programs to Support Shared Growth
Technical Support
Technical improvements of suppliers are directly connected to the performance of products that we supply to our customers. In addition to providing support for technology development, we proactively share our technologies with suppliers to identify and foster SMEs with growth potential and thus help them further strengthen their technological competitiveness.
Technical Support Programs
| Program | Details | Performance (Accumulated figures since 2011 to 2017) |
|---|---|---|
| Diversification | Reduce cost through joint technology development; technological innovation; and help suppliers increase sales | Counter purchase worth KRW 103.8 billion |
| Free patent transfer | Transfer SK hynix’s intellectual property (IP) to suppliers at no cost to support their technological competitiveness | Completed the transfer of 111 IPs |
| Patent consulting | Improve suppliers’ IP management capabilities through consultations provided by SK hynix patent experts and outside experts, such as patent attorneys | 22 suppliers |
| Technology escrow | Protect suppliers’ technology materials by having them stored at a third organization – Win-Win Growth Foundation | 19 cases |
| Performance sharing system | Share the outcome of joint innovation activities carried out by SK hynix and suppliers based upon pre-agreed measures | 10 suppliers, 22 tasks, purchasesupport of KRW 5.2 billion |
| Pattern wafer support | Provide suppliers with fine-patterned wafers, which are produced using SK hynix’s process equipment, as development samples | 3,064 sheets |
| Technological development fund | Directly support through technological development fund at no interest for a next-generation technology development project which is expected to generate synergy with SK hynix | KRW 1 billion for 2 suppliers |
| Technology innovation partners | Choose SMEs with technological potential as ‘technology innovation partners’ and provide support | 3 suppliers |
Financial Support
SK hynix operates financial support programs for suppliers that are experiencing difficulties in fund management. Efficient fund management of suppliers serves as a basis for shared growth and can also reduce potential risks of SK hynix.
Financial Support Programs
| Program | Details | Performance (Accumulated figures since 2011 to 2017) |
|---|---|---|
| Shared Growth Fund(1st-tier) | Lend capital for management and facility to suppliers at low interest rates (1-1.5% compared to market interest rate) |
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| Shared Growth Fund (2nd-tier and 3rd-tier) | Lend capital for management and facility to suppliers at low interest rates (1.5-1.8% compared to market interest rate) |
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| Shared Growth Insurance | Financial support program for 2nd-tier suppliers through which collects bonds and provides loans when a 1st-tier supplier goes bankrupt |
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| Semiconductor Fund | Equity investments in promising small and medium-sized semiconductor companies with fund size of KRW 200 billion |
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| Network Loan | Determine the credit line based on the performances and provide loans without any material evidence |
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| Payment Support Fund | Zero-interest loans provided to 1st-tier and 2nd-tier suppliers in order to improve payment conditions |
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Management Support
SK hynix has been contributing to increased competitiveness of suppliers by focusing on personnel management, such as providing training to SME employees who lacked such opportunities.
Management Support Programs
| Program | Details | Performance (Accumulated figures since 2011 to 2017) |
|---|---|---|
| Win-Win Academy | Training programs aimed at helping supplier employees develop their competencies, including job training, leadership training and e-learning | 6,673 suppliers |
| Supplier CEO Seminar | Special lectures, given by well-known people on various subjects, including business administration, economy, humanities and society, to CEOs of suppliers and executives in charge of SK Group affiliates | 187 persons for 1st-tier suppliers 29 persons for 2nd-tier suppliers |
| MBA for Mid-level Managers | Competency enhancement trainings for mid-level managers at suppliers in such fields as strategy, accounting, finance, marketing, HR and organization | 120 suppliers |
| Industrial Revolution Movement | Consultation to support innovation activities of 2nd-tier suppliers to improve their productivity (Plan to contribute an annual KRW 700 million from 2013 to 2017) | KRW 3.5 billion |
| Job Fair | Jointly attend job fairs to help suppliers hire outstanding talent | 5 persons |
| SK Employment Foundation | Public-private partnership program to offer job trainings and internships to youths, while providing suppliers with outstanding personnel | 404 persons for 213 companies |
| Win-Win Payment System | Monitor the payment status of suppliers and encourage them to make improvements in an effort to improve payment conditions (cash) between 1st-tier and 2nd-tier suppliers | Participated by 47 of 1st-tier suppliers and 35 of 2nd-tier suppliers |
| Introductory Training on Semiconductor Technologies | Provide semiconductor process and equipment training to entry-level employees at suppliers – job experience of no more than six years | 197 persons from Class 1 through Class 5 |
