LG Group, the fourth-largest conglomerate in South Korea, said Wednesday it would provide about 29,000 of its patents to small companies in an effort to help them find new business opportunities.
The conglomerate revealed the plan during the opening of its Creative Economy Innovation Center in Cheongju, North Chuncheong Province, which group officials said will conduct research and development in a broad range of sectors including in cosmetics, biotechnology and energy.
The company said it would operate funds of 150 billion won ($137 million) to support venture companies and nurture start-ups.
Running support programs for female workers, and opening 29,000 patents of LG affiliates to SMEs for free or with some fees will also be part of LG’s initiatives to promote the creative economy, according to the conglomerate.
The opening ceremony of the center was attended by President Park Geun-hye, ICT minister Choi Yang-hee, Justice Minister Hwang Gyo-an, LG Group chairman Koo Bon-moo and officials from local governments and research agencies.
“The innovation center will play a key role in connecting R&D and the financial capabilities of conglomerates with the bioindustry infrastructure in the province and converging the ideas of small firms,” Park said in the opening ceremony.
At the so-called IP Support Zone of the center, companies can receive consultation from patent experts and use the open patents in a wide array of fields including electronics, chemical and telecommunications.
The business group is planning to join hands with the Ministry of Science, ICT and Future Planning, and the Korea Intellectual Property Office to support SMEs to develop technology and products with its patents and those owned by government agencies.
With the rising popularity of Korean cosmetics brands especially in Asia thanks to hallyu, LG will also pour resources to develop raw materials for makeup utilizing herbs grown in the province.
The conglomerate’s medicine and cosmetics business LG Household & Healthcare will also set up test labs which will help fledgling cosmetics firms right from the development stage to production. It will also evaluate the quality and effectiveness of cosmetics materials.
On the energy front, LG affiliates including LG Chem will invest a total of 1.6 trillion won over the next three years in the province to develop energy efficient products including solar energy modules and energy saving systems.
