Thursday, July 16, 2026
The Korea Fair Trade Commission (KFTC, Chairperson Biung-Ghi Ju) held the 'POSCO Win-Win Cooperation Agreement Signing Ceremony' on Thursday, July 16, at the POSCO Center, attended by representatives from five POSCO Group affiliates and their business partners. The five participating affiliates were POSCO, POSCO International, POSCO E&C, POSCO Future M, and POSCO DX.
The agreement was designed to ensure that the benefits of win-win cooperation extend beyond POSCO's first-tier suppliers to second-tier and lower-tier SME suppliers throughout its supply chain. Following Samsung, SK, LG, and Hyundai Motor Group, POSCO became the fifth large business group to conclude such an agreement.
The agreement mainly covers improvements to payment terms between POSCO and its first- and second-tier suppliers, the expansion of benefit-sharing programs to lower-tier suppliers, and enhanced management support to improve industrial safety standards. These measures were developed through voluntary consultations between POSCO and its business partners.
First, POSCO and its first- and second-tier suppliers agreed to improve payment conditions for their respective lower-tier suppliers. This reflects the recognition that payment timing and payment methods are critical to ensuring stable cash flow, improving business conditions, and securing future investment capacity for SME suppliers.
POSCO committed to paying its first-tier suppliers within 10 days of receiving the contracted goods or services and to maintaining its principle of making 100 percent of payments through cash or cash-equivalent methods. The company also agreed to make active use of the Shared Growth Payment System.
The first- and second-tier suppliers likewise agreed to make efforts to pay their lower-tier SME suppliers within 30 days after receiving the contracted goods or services, increase the proportion of cash-equivalent payments, and actively utilize the Shared Growth Payment System. At the same time, POSCO will provide various support measures for suppliers that faithfully participate in the agreement, thereby encouraging first- and second-tier SME suppliers to take a more active role in improving payment conditions.
In addition, POSCO pledged to share the benefits of its business performance with SME suppliers rather than retaining them exclusively and to take more proactive steps to improve industrial safety standards among SME suppliers in order to better protect workers' lives and health.
Specifically, POSCO will expand its existing Benefit-Sharing Program, which had previously been available only to first-tier suppliers, to include second-tier and lower-tier SME suppliers. This initiative is expected to enhance the competitiveness of both POSCO and its SME partners by ensuring that the benefits generated through technological development and process improvements are shared rather than concentrated within large corporations.
Furthermore, POSCO plans to strengthen industrial safety at SME suppliers by providing consulting services for establishing safety management systems and supporting the introduction of safety equipment, thereby contributing to better protection of workers' lives and health.
The agreement is expected to benefit approximately 5,300 suppliers across POSCO's supply chain. POSCO also announced that it will incorporate the key provisions of this agreement into the Fair Trade Agreements to be signed with its suppliers early next year, demonstrating its commitment to embedding the principles of win-win cooperation into its business practices.
Chairperson Ju stated, "Innovation and prosperity can be sustained only on the foundation of a fair and inclusive market system built upon the principles of win-win cooperation." He added, "Win-win cooperation between large corporations and their business partners serves as social capital that strengthens the global competitiveness of large corporations while driving the sustainable growth of our economy." He further noted, "The KFTC will also stand as a reliable partner in supporting this meaningful agreement between POSCO and its business partners."
The KFTC plans to closely monitor the implementation of the agreement through its evaluation of Fair Trade Agreements and other follow-up measures. It will actively support the successful implementation of the agreement by providing incentives to companies demonstrating exemplary performance and encouraging the continued spread of a culture of win-win cooperation.
etc/English