300 billion won disbursed through co-growth fund

Support spans finance, production innovation, ESG and AI

LG Innotek President Moon Hyuk-soo. [LG Innotek]
LG Innotek President Moon Hyuk-soo. [LG Innotek]

LG Innotek announced Wednesday that it received the top rating in the 2025 Co-growth Index evaluation, earning the distinction for the 10th consecutive year.

The Co-growth Index, compiled by the Commission for Co-growth between Large and Small Enterprises, measures companies' efforts to foster mutual growth with their suppliers and is graded on a five-tier scale: outstanding, excellent, average, poor and very poor.

LG Innotek has held the outstanding rating every year since 2016. The company was recognized particularly for broadening its supplier support beyond financial assistance and production innovation to encompass smart factory development, ESG management, on-site professional training, AI, industrial safety and technology protection.

The company operates a 143 billion won ($106 million) co-growth fund that provides financing to suppliers at rates below those offered by commercial banks. To date, the fund has disbursed a cumulative 304 billion won to 130 companies.

LG Innotek also helps suppliers struggling with factory automation build smart manufacturing systems. Last year, it introduced AI training programs to strengthen on-site capabilities.

This year, the company expanded its support into industrial safety and technology protection. New initiatives include specialized training for workplace risk-assessment personnel and comprehensive health screenings for employees at partner companies and small and medium-sized enterprises in surrounding communities.

To safeguard suppliers' core technologies, LG Innotek works in conjunction with government technology-protection programs to help partners participate in anti-leak system installations and technology-protection voucher schemes. The effort aims to strengthen suppliers' ability to protect proprietary technologies and trade secrets while reducing technology-leak risk across the supply chain.

LG Innotek has also deepened communication with suppliers through its "Co-growth Camp," a forum where it gathers supplier feedback through a Voice of Supplier channel and shares management issues and best practices. The company holds an annual "Co-growth Academy" that provides information on global economic and market trends, supply chain carbon neutrality and AI transformation.

"Being named the top company for 10 consecutive years is the fruit of our efforts to strengthen competitiveness and achieve mutual growth through close collaboration with our suppliers," President Moon Hyuk-soo said. "We will continue to lead the way in building a healthy industrial ecosystem and a virtuous cycle by reinforcing a partnership-driven management approach that delivers real, practical benefits to our suppliers."


joze@heraldcorp.com