Samsung Electronics said Wednesday it planned to pay a combined 14.2 billion won ($12.3 million) in incentives to its 103 chip suppliers in the first half of this year.
The Korean tech giant said it was the highest ever amount going to the largest ever number of recipient companies.
The company has offered suppliers incentives every year since 2010 as part of its shared-growth efforts with small and medium-sized firms. The recipient companies are decided based on their performance in production, quality and safety issues.
From this year, the company has also decided to pay out incentives twice a year in order to help boost the sluggish domestic economy.
Samsung has carried out diverse programs to support suppliers.
The company dispatched its own engineer to work at a chip supplier for two years and share its business know-how. It also offers consultations on environment and safety regulations to prevent accidents at workplaces.
By Lee Ji-yoon (jylee@heraldcorp.com)
