Published : Feb. 26, 2012 - 20:25
GS Caltex Corp. is continuing its support of smaller partner companies this year through payments in cash and flexibility in readjusting costs.
The nation’s second-largest oil refiner received top marks for seeking mutual growth with suppliers in an evaluation by the Commission on Shared Growth for Large and Small Companies in December 2010.
Last year, GS Caltex paid its suppliers entirely in cash, which amounted to 420.5 billion won ($374 million), as part of liquidity support.
The average time it took for payment was reduced from 5.2 days in 2010 to 4.4 days after receiving the tax invoice. It took around 10 days before 2010.
GS Caltex also allowed the suppliers to raise their delivery prices by a total of 5.45 billion won as costs rose due to currency exchange rate changes, a raw material price hike and inflation.
The refiner even pays attention to the training and welfare of its partner companies’ staff.
GS Caltex has run a variety of technical education programs for employees of suppliers since 2010.
Workers from GS Caltex and a supplier give a “thumbs up” to demonstrate their bilateral cooperation. (GS Caltex)
Jang Young, chief executive Hi-Tech Engineering Co. which has worked with GS Caltex since 1994, said such technical education was greatly helping his company’s engineers improve their job performances.
As the small suppliers lag behind in employee welfare, GS Caltex opened its three holiday resorts to them.
The refiner’s support of suppliers applies online as well.
Superb partner companies and their products have been publicized through the GS Caltex website since the second half of last year to assist the marketing of small firms that don’t have their own websites or are lesser known.
By Kim So-hyun (
sophie@heraldcorp.com)