POSCO introduces 'purchase preferential system for social-friendly companies'
POSCO introduces 'purchase preferential system for social-friendly companies'
  • Jung Jun-ho
  • 승인 2019.12.02 10:25
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POSCO will introduce a "purchase preferential system for social-friendly companies," starting on Dec. 2, the first of its kind by a private company in Korea.

To support the self-reliance of vulnerable groups beyond economic profit-making and join in solving social problems, POSCO will expand transactions with social-friendly companies, such as disabled people’s companies, social enterprises and social cooperatives, and give incentives to those companies.

First of all, POSCO will lower the threshold of trading by easing the minimum pass score for social-friendly companies when evaluating the registration of new suppliers.

It will also give incentives of 5 percent to those companies when they participate in POSCO's bid to purchase facilities and materials. For example, if the bid is 100 won, POSCO evaluates it to 95 won and contracts it at 100 won if it wins.

POSCO expects the introduction of the system will allow social-friendly companies to secure stable profits and expand sales by taking part in bids to make it easier to register with suppliers and reflect proper margins.

"We hope that POSCO will take the lead in creating a culture in which social-friendly companies are respected, and further grow with them so that the value of co-prosperity will spread to society," said Choi Jung-woo, chairman of POSCO.

Meanwhile, POSCO abolished the minimum price bidding system last year, becoming the first large company in Korea.

This year, it has been strengthening the industrial ecosystem with its business partners through various mutual growth activities, including the introduction of a sub-contract win-win settlement system, which directly pays sub-contract payments to secondary suppliers through deposit accounts.


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