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SK Incheon Petrochem to donate 2-3% salary to suppliers

Collected: 2017.06.29

Distributed: 2017.06.30

Source: Go Direct

Employees of SK Incheon Petrochem Co., Incheon-based petrochemical unit of South Korea’s SK Group, have agreed to put aside 2 to 3 percent of their annual salary this year to save 200 million won ($175,546) and give it to underpaid counterparts of suppliers.

President and Chief Executive Choi Nam-kyu signed an agreement on the project dubbed “Happiness Sharing” on Wednesday with Lee Dong-yong, head of the labor union, and partner companies.

Under the goodwill program, every SK Incheon Petrochem employee would leave a portion of their salaries to save 200 million won this year that would give about 700,000 won each to 286 workers of subcontractors.

The company said it will keep up the program beyond this year.

It becomes the second SK company to initiate a bona fide offer aimed to share profits with suppliers.

In 2015, chipmaker SK Hynix Inc. donated 10 percent of their salary increases that year to deliver 6.6 billion won to subcontractors.

At the same time, SK Incheon Petrochem is offering various aid programs to its business partners in the Incheon region including incentives for new technologies and strong performance.

To enhance its social responsibility, it will expand donations for senior and welfare centers in Incheon.

SK Incheon Petrochem was formed after SK Group acquired Incheon Petroleum in 2006.

By Jung Wook

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