Hyundai Motor (005380.KS) and Kia (000270.KS) are regarded as leading Korean companies in win-win cooperation. This is thanks to their all-around support, ranging from low-interest loans to research and development (R&D) and global expansion, which has produced shared growth results with some 8,000 suppliers. Going forward, Hyundai Motor plans to continue expanding the scope of its support to lower-tier suppliers, strengthening the competitiveness of the entire supply chain and securing a competitive edge in the global auto market.
Jung Hee-sub, executive director and head of Hyundai Motor's win-win cooperation office, spoke at the "2026 Korea Win-Win Cooperation Conference" held at the Shilla Hotel in Jung-gu, Seoul, on the 9th. "Shared growth with suppliers is the source of a carmaker's competitiveness," he said. "We are making great efforts to grow together, all the way down to second- and third-tier suppliers."
A representative example is the export marketing support program using the shared growth fund. "Even when technologically excellent small and mid-sized suppliers take part in exhibitions to expand overseas, they sometimes fail to draw attention because of their low profile," Jung said. "We are stepping up support to address this." In fact, since 2018 Hyundai Motor has supported various costs for second- and third-tier suppliers participating in exhibitions to develop overseas sales channels. The number of companies supported through this year is 632, with contributions reaching 7 billion won.
The company is also running a work environment improvement support program that provides up to 36 million won to help small and mid-sized suppliers improve their facilities and environment. "There are cases where employees at second- and third-tier suppliers quit within a year after seeing the company's environment and facilities," Jung said. "Over the past two years, we have provided 13.4 billion won (including government subsidies) to 678 companies." In addition, from 2022 through last year, the company provided a total of 6 billion won in R&D funding to suppliers.
Hyundai Motor Group is also operating the "Win-Win Cooperation 5 Star" program to foster a culture of shared growth. Under the system, the win-win cooperation activities of first-tier suppliers are evaluated both quantitatively and qualitatively for shared growth, and the results are reflected in the next round of bidding. "To grow together with second- and third-tier suppliers, Hyundai Motor Group cannot do it alone," Jung said. "We are encouraging the cooperation of first-tier suppliers to build a culture of shared growth."
In closing, he said, "We are well aware that the growth and development of our suppliers is our own growth and development." He added, "We will create a virtuous cycle in which the growth of Hyundai Motor and Kia leads to the growth of suppliers, and the growth of suppliers in turn leads back to our own growth."
