POSCO Introduces its Shared Growth Support System
OREANDA-NEWS. December 05, 2013. POSCO introduced the `POSCO WinC` shared growth support system to spread the culture of shared growth and fair trade, and will lead support of fund liquidity of primary and secondary cooperating companies.
POSCO signed an agreement with the Industrial Bank of Korea (IBK), Kookmin Bank (KB), and corporate credit evaluator Nice D&B to carry out support activities for primary•secondary cooperating companies.
POSCO WinC is a system that guarantees fund liquidity to primary•secondary cooperating companies, where secondary cooperating companies can generate sales bonds based on executed agreements even before primary cooperating companies complete delivery to POSCO.
Secondary cooperating companies can invoice primary cooperating companies through the system anytime after they have delivered goods to the primary cooperating companies, and primary cooperating companies which receive payment requests from secondary cooperating companies then immediately transfer cash funds to the account linked to the WinC system.
When cash payment is difficult, sales bonds must be generated to the Industrial Bank of Korea (IBK) and Kookmin Bank (KB). In this case, both banks support funds without additional financial costs such as credit fees or collateral to primary cooperating companies, and POSCO immediately pays for the sales bonds held by secondary cooperating companies.
This creates the same effect as POSCO paying secondary cooperating companies immediately, with expectations of settling through a system that can satisfy both primary and secondary cooperating companies.
In addition, POSCO WinC includes functions to monitor payments between primary and secondary cooperating companies, as well as having a self-management evaluation system allowing cooperating companies to check their management status and a client monitoring system to manage suppliers and sales clients, which are expected to contribute to management stabilization of cooperating companies.
POSCO will have cooperating companies and shared growth agreement companies register in WinC this year, and expand this in the following year.
Further, shared growth agreements with primary and secondary cooperating companies and goods price adjustments done on paper will also be executed via the WinC system.
POSCO expects to form a win-win corporate ecosystem between large companies and primary-secondary cooperating companies with the establishment of the WinC shared growth support system, and strengthen corporate competitiveness by securing fund liquidity for primary and secondary cooperating companies.