- Samsung hosts “Win-Win Cooperation Agreement” signing ceremony with 1st, 2nd, and 3rd-tier suppliers -
- Expanding supplier support through improved payment terms and 3.5 trillion KRW in financial assistance -
June 29, 2026
On June 29 (Monday), the Korea Fair Trade Commission (KFTC) held a "Win-Win Cooperation Agreement Signing Ceremony" at Samsung Digital City, with representatives from 12 Samsung Group affiliates and their suppliers in attendance.
Participating Samsung affiliates: Samsung Electronics, Samsung Display, Samsung SDI, Samsung Electro-Mechanics, Samsung SDS, Samsung Heavy Industries, Samsung E&A, Samsung C&T (Engineering & Construction), Samsung C&T (Fashion), Hotel Shilla, Cheil Worldwide, and SEMES.
This agreement was established to extend the culture of mutual growth beyond the 1st-tier suppliers within Samsung’s transaction network to include 2nd and 3rd-tier suppliers. The goal is to ensure that the benefits of Samsung’s cooperation efforts reach smaller, secondary, and tertiary partners without obstruction.
The agreement, formulated through voluntary consultations between Samsung and its suppliers, focuses on two main pillars: improving payment conditions across the supply chain and expanding financial and technological support for 1st, 2nd, and 3rd-tier suppliers.
Key Content of the Agreement
1. Improvement of Payment Terms
Samsung and its 1st and 2nd-tier suppliers have agreed to improve payment conditions for their respective partners. Recognizing that payment terms are the most critical factor for small and medium-sized suppliers to secure stable liquidity, the following measures were adopted:
Samsung's Commitment: Samsung Electronics will pay its 1st-tier suppliers within 10 days of the closing date, significantly earlier than the statutory 60-day limit. Furthermore, Samsung will maintain its policy of payment through cash or the "Win-Win Payment System" and will ensure early payment for the holiday season.
1st and 2nd-Tier Suppliers' Commitment: These suppliers have committed to establishing reasonable payment terms—such as within 30 days of the closing date—for their own partners, and will strive to utilize cash or the "Win-Win Payment System." This commitment by 1st and 2nd-tier SMEs is highly significant, as their participation is essential for the benefits of Samsung's payment improvements to reach the 2nd and 3rd-tier suppliers.
Simultaneously, Samsung will provide various support programs to suppliers that join these payment improvement initiatives, encouraging more active participation.
2. Expansion of Financial and Technological Support
Samsung will expand its existing support for 1st-tier suppliers while significantly creating and increasing financial and technological assistance for 2nd and 3rd-tier suppliers.
Financial Aid: Samsung will continue to operate and expand a 3.5 trillion KRW "Win-Win Fund" and "ESG Fund" to support facility investment, R&D, and ESG transition for its suppliers.
Social Contribution: Samsung Electronics has officially included its "Support for 2nd and 3rd-tier suppliers and creation of an industrial accident fund"—part of the 5 trillion KRW social contribution plan announced last May—in this agreement, demonstrating a more responsible approach to mutual growth.
Competitiveness Enhancement: Samsung has proactively decided to link "energy costs" and "labor cost" fluctuations to subcontract payments—items currently not subject to the Subcontracting Act's payment-linkage mandate—and will provide environmental safety management consulting to 2nd and 3rd-tier suppliers.
This agreement is expected to benefit approximately 6,700 suppliers within Samsung's supply chain. Samsung has pledged to incorporate the core principles of this agreement into the "Fair Trade Agreements" to be signed early next year, ensuring long-term compliance.
KFTC Chairman Joo Byung-ki stated, "For South Korea to leap forward as a technology leader, win-win cooperation between large enterprises and SMEs is essential." He emphasized, "While strong institutional reform to eradicate exploitative practices is necessary, the voluntary efforts of Korea’s representative companies to spread new norms of mutual growth are crucial for these reforms to succeed."
He added, "Through this agreement, Samsung’s cooperation efforts will flow seamlessly into those of its suppliers. This will serve as a starting point for establishing a healthy corporate ecosystem where the achievements of large enterprises are fairly distributed not only to the top of the supply chain but also to the lower-tier suppliers. The KFTC will firmly support Samsung and its suppliers so that these efforts can bear fruit."
The KFTC plans to support the successful implementation of this agreement by providing incentives to compliant companies, such as granting bonus points in future Fair Trade Agreement evaluations and selecting model subcontractors. Going forward, the KFTC intends to actively induce the signing of such win-win cooperation agreements between large enterprises and their suppliers to foster a culture of mutual growth across the entire industrial ecosystem.