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Samsung pays out 35.4 billion won in incentives to suppliers

Samsung pays out 35.4 billion won in incentives to suppliers

Posted July. 23, 2020 07:49,   

Updated July. 23, 2020 07:49


Samsung Electronics announced on Wednesday that it will be paying out a total of 36.53 billion won of incentives to employees at leading semiconductor suppliers for the first half of the year. It will be the largest of its kind paid out for the first half of a year. The company hopes that the incentives will help boost the domestic economy, which has been struggling due to COVID-19.

The incentives will be paid out to some 23,000 employees at 297 leading semiconductor suppliers that have achieved “productivity” and “safety” targets. The amount is 4.2 billion won larger than the first half of last year, which was 32.33 billion won. Samsung Electronics pays out safety incentives twice a year to manufacturing and quality suppliers as well as vendors supplying environmental safety and infrastructure equipment. The amount of incentives paid out by Samsung Electronics since 2010 amounts to 380 billion won.

“This will be the first time I’ve earned the incentive after getting my first job. I plan to spend it on a family trip” said Kim Hyun-seok, a employee at Seogang E&C in charge of pipe construction at Samsung’s Hwaseong Production Plant. “I will put more focus on work performance and safety and aim to get incentives every year.”

“The company’s sales and workforce have grown by 20 times every year since working with Samsung Electronics in 1993,” said CEO Ryu Seong-mok of Hwaseong Engineering. “Partnership with Samsung has been the foundation of our growth.”

This year, Samsung Electronics has established a safety framework called “Pace Maker” with five suppliers including Edward Korea and Doowon E&G to reinforce safety cooperation. The suppliers will work together to boost capabilities on safety, running a regular consultative organization with Samsung Electronics.

Dong-Il Seo dong@donga.com