The South Korean government will motivate more big businesses to share the benefits of cost reduction and technology development with their smaller subcontractors under the so-called benefit sharing program.
The program launched in 2008 seeks joint efforts between big and smaller companies to cut costs and deliver technological breakthroughs and encourages the benefits to be shared before they are excess profit to conglomerates.
The expansion of this program is a major focus of the fourth three-year basic plan for the 2017-2019 period announced on Wednesday by the Ministry of Trade, Industry and Energy as part of efforts to make its shared growth vision into a reality.
Under the latest plan, the government will increase the number of companies involved in the benefit sharing program from the current 270 companies to 320, upping the number of benefit sharing projects from 3,305 cases to 4,200 in total.
By Ko Jae-man
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]