To mark Samsung’s 50th anniversary, Vice Chairman Lee Jae-yong shared the company’s vision for togetherness by saying that, “sharing and achieving growth together is how we become the world’s greatest.” That’s why in addition to investing in future technology, new businesses and Environmental, Social, and Governance (ESG), Samsung continues to value social responsibility. And as part of these efforts, we operate a wide range of programs that foster partner growth, including the Semiconductor Partner Incentive Program. Twice a year, in February and July, we give tens of billions Korean won in incentives to partners that reach their productivity and safety goals.
Since 2010, Samsung has been making incentive payments to promote our partners’ growth in size and quality,
and the total amount paid for nearly 12 years through the first half of 2021 is KRW 456.1 billion. In 2018, we extended the incentive
program from first-tier suppliers to include second-tier suppliers and paid a total of KRW 82.1 billion. That’s more
than 16 times the amount we first paid in 2010. And in 2021, as the COVID-19 pandemic continues, we plan to
expand our payments to KRW 88 billion by the second half of the year.
In fact, Samsung is steadily awarding more partners and more
partner employees with bigger incentives.
Seokang E&C employee Kim Hyeonseok
Hwasung Engineering CEO Ryu Seongmok
Both Kim Hyeonseok and Ryu Seongmok received incentives in 2020. Kim Hyeonseok, who was awarded for his outstanding work in plumbing construction on Samsung’s Hwaseong campus, shared his joy at getting an incentive and said he would continue to focus on increasing productivity while practicing safety. Ryu Seongmok, who leads piping and duct maintenance company Hwaseong Engineering, thanked Samsung for the incentives and added that the partnership with Samsung had laid the foundation for his company’s growth.
The Semiconductor Partner Incentive Program awards partner companies and their employees who rank high in productivity and safety evaluations. Partners that oversee production, quality, etc. are rewarded with Productivity Incentives, while partners that provide environmental safety and expertise are rewarded with Safety Incentives. The incentive program for our partners is an indication of Samsung’s commitment to fostering growth among partners for a healthy and sustainable supply chain.
| Year | No of partners |
Incentive amount (unit: KRW billion) |
No of partner employees |
|---|---|---|---|
| 2010 | 46 | 5.06 | 4,865 |
| 2011 | 46 | 6.1 | 5,861 |
| 2012 | 47 | 6.83 | 6,370 |
| 2013 | 89 | 18.09 | 8,852 |
| 2014 | 95 | 20.9 | 10,174 |
| 2015 | 98 | 32.43 | 20,948 |
| 2016 | 122 | 36.83 | 22,137 |
| 2017 | 143 | 65.27 | 46,022 |
| 2018 | 224 | 82.07 | 54,027 |
| 2019 | 271 | 74.07 | 41,111 |
| 2020 | 297 | 77.72 | 46,981 |
| First half of 2021 |
294 | 30.79 | 24,120 |
From 2010 through the first half of 2021, Samsung has steadily increased the number of partners that were given incentives, and a total of KRW 456.1 billion was awarded to 291,468 partner employees during a nearly 12-year period..
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