Samsung sets up a $445 million fund for small suppliers

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Samsung Electronics has announced that it’s setting up a $445 million fund to help small suppliers. It’s the biggest South Korean company to announce this step after the country’s new President Moon Jae-in said that more needs to be done to protect small businesses in South Korea.

President Moon Jae-in took office earlier this month after his predecessor was impeached following a corruption probe that has ensnared Samsung as well. The company is alleged to have paid bribes to win the government’s support. Samsung Electronics vice chairman and heir apparent Lee Jae-yong remains behind bars since he was indicted on multiple charges which include bribery and embezzlement.

The company said in a statement that it decided to set up this fund after meeting with suppliers late last year. Samsung explains that the purpose of this fund is to enable small suppliers to borrow cash interest-free for a year so that they can pay their subcontractors promptly. Samsung is going to run this fund until May 2020.

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