SVSocial Value

SOCIAL VALUEAccompanied Growth

Progress Direction of Accompanied Growth

SK hynix qualitatively improves mutual technological competitiveness through constant cooperation with cooperative firms based on a company culture of fair trade, safety, security and ethical management and strives to sincerely make an effort together to solve social problems.

Programs to Support Shared Growth

Technical Support

Technical improvements of suppliers are directly connected to the performance of products that we supply to our customers. In addition to providing support for technology development, we proactively share our technologies with suppliers to identify and foster SMEs with growth potential and thus help them further strengthen their technological competitiveness.

Technical Support Programs

Technical Support Programs
Program Details Performance
(Accumulated figures since 2011 to 2017)
Diversification Reduce cost through joint technology development; technological innovation; and help suppliers increase sales Counter purchase worth KRW 103.8 billion
Free patent transfer Transfer SK hynix’s intellectual property (IP) to suppliers at no cost to support their technological competitiveness Completed the transfer of 111 IPs
Patent consulting Improve suppliers’ IP management capabilities through consultations provided by SK hynix patent experts and outside experts, such as patent attorneys 22 suppliers
Technology escrow Protect suppliers’ technology materials by having them stored at a third organization – Win-Win Growth Foundation 19 cases
Performance sharing system Share the outcome of joint innovation activities carried out by SK hynix and suppliers based upon pre-agreed measures 10 suppliers, 22 tasks, purchasesupport of KRW 5.2 billion
Pattern wafer support Provide suppliers with fine-patterned wafers, which are produced using SK hynix’s process equipment, as development samples 3,064 sheets
Technological development fund Directly support through technological development fund at no interest for a next-generation technology development project which is expected to generate synergy with SK hynix KRW 1 billion for 2 suppliers
Technology innovation partners Choose SMEs with technological potential as ‘technology innovation partners’ and provide support 3 suppliers

Financial Support

SK hynix operates financial support programs for suppliers that are experiencing difficulties in fund management. Efficient fund management of suppliers serves as a basis for shared growth and can also reduce potential risks of SK hynix.

Financial Support Programs

Financial Support Programs
Program Details Performance
(Accumulated figures since 2011 to 2017)
Shared Growth Fund(1st-tier) Lend capital for management and facility to suppliers at low interest rates (1-1.5% compared to market interest rate)
  • Fund size: KRW 139.4 billion
  • Loans provided: KRW 98.7 billion
Shared Growth Fund (2nd-tier and 3rd-tier) Lend capital for management and facility to suppliers at low interest rates (1.5-1.8% compared to market interest rate)
  • Fund size: KRW 60.2 billion
Shared Growth Insurance Financial support program for 2nd-tier suppliers through which collects bonds and provides loans when a 1st-tier supplier goes bankrupt
  • Fund size: KRW 9.6 billion
  • Loans provided: KRW 1.8 billion
Semiconductor Fund Equity investments in promising small and medium-sized semiconductor companies with fund size of KRW 200 billion
  • Size of investment: KRW 25 billion
  • Actual investment: KRW 17.5 billion
Network Loan Determine the credit line based on the performances and provide loans without any material evidence
  • Loans provided: KRW 4.8 billion
Payment Support Fund Zero-interest loans provided to 1st-tier and 2nd-tier suppliers in order to improve payment conditions
  • Fund size: KRW 100 billion

Management Support

SK hynix has been contributing to increased competitiveness of suppliers by focusing on personnel management, such as providing training to SME employees who lacked such opportunities.

Management Support Programs

Management Support Programs
Program Details Performance
(Accumulated figures since 2011 to 2017)
Win-Win Academy Training programs aimed at helping supplier employees develop their competencies, including job training, leadership training and e-learning 6,673 suppliers
Supplier CEO Seminar Special lectures, given by well-known people on various subjects, including business administration, economy, humanities and society, to CEOs of suppliers and executives in charge of SK Group affiliates 187 persons for 1st-tier suppliers
29 persons for 2nd-tier suppliers
MBA for Mid-level Managers Competency enhancement trainings for mid-level managers at suppliers in such fields as strategy, accounting, finance, marketing, HR and organization 120 suppliers
Industrial Revolution Movement Consultation to support innovation activities of 2nd-tier suppliers to improve their productivity (Plan to contribute an annual KRW 700 million from 2013 to 2017) KRW 3.5 billion
Job Fair Jointly attend job fairs to help suppliers hire outstanding talent 5 persons
SK Employment Foundation Public-private partnership program to offer job trainings and internships to youths, while providing suppliers with outstanding personnel 404 persons for 213 companies
Win-Win Payment System Monitor the payment status of suppliers and encourage them to make improvements in an effort to improve payment conditions (cash) between 1st-tier and 2nd-tier suppliers Participated by 47 of 1st-tier suppliers and 35 of 2nd-tier suppliers
Introductory Training on Semiconductor Technologies Provide semiconductor process and equipment training to entry-level employees at suppliers – job experience of no more than six years 197 persons from Class 1 through Class 5