Samsung Electronics, the South Korean electronics giant has said that it will set up a fund of a whopping 500 billion won, i.e. U.S. $445 million to help the small suppliers, as reported by Reuters. Samsung Electronics is the highest profile company that has unveiled such steps in the wake of the new President’s call. The new President, Moon Jae-in had called to protect the small businesses of South Korea, which the company is doing with its Samsung 500 billion fund.
Samsung 500 Billion Fund for Small Businesses
The fund provided by this electronics giant will allow the suppliers of the company to borrow money, i.e. cash on an interest-free basis for one year. This way, the suppliers’ sub-contractors will be paid on a prompt basis. This scheme will run till May 2020.
In a statement, Samsung Electronics said that it took the decision to establish this fund after having meetings with its suppliers during late last year. After these meetings, the company has finally unveiled this step to create the Samsung 500 billion fund.
President Moon Jae-in: The ‘Jobs President’
Moon came in the power this month, and he promises to rein in the conglomerates that are family-owned, dominating the Asia’s 4th largest economy, as reported on Venture Beat. The new President, Moon Jae-in calls himself the ‘Jobs President’.
Notably, Moon Jae-in has said that he wants to raise the minimum wages, and also reduce the number of working hours. Not only this, he has also said that he wants to discourage the system of contract jobs.
Samsung Electronics is Not Alone
The South Korean tech giant is not alone in supporting the small businesses. Many South Korean firms have made some significant moves recently; supporting the small jobs and businesses.
The National Agricultural Co-operative Federation is South Korea’s largest co-operative of agriculture. It employs over 35,000 workers, both part-time and full-time. This employment includes employees at around dozens of its affiliate companies. The affiliate companies of this large co-operative also include a hypermarket chain and a bank.
The co-operative federation has recently said that it will consider making almost 5,245 of its temporary workers into regular employees.
Not only this, SK Broadband is also taking considerate steps towards the new President, Moon Jae-in’s call. SK Broadband is an affiliate of the nation’s largest telecom company- SK Telecom. SK Broadband plans to set up a service subsidiary which will make almost 5,200 workers who are currently on contracts into regular employees; as mentioned by Yonhap news agency. But according to the report by Reuters, an SK spokesperson could not be reached immediately for comment.
Future of Small Businesses
We don’t know how such moves will affect the future of small businesses and suppliers of South Korea. But the Samsung 500 billion fund is certainly a positive step towards the betterment of small businesses, jobs, and suppliers. Such considerate moves by Samsung Electronics and other companies have the potential to develop the small businesses at a large level.