First- and second-tier suppliers of Samsung Electronics inked an agreement on Friday to promote fair trade and shared growth by using standard contract terms and improving payment means and conditions.

Twenty-five first-tier suppliers and 589 smaller firms that supply components to them also agreed to be reasonable when adjusting prices, have staff to assist partner firms and introduce a legal compliance system.

The suppliers’ manifest of commitment to shared growth comes after Samsung Group said it would invest 1.2 trillion won over the next five years to back its first- and second-tier suppliers.

Representatives of the suppliers said they would establish a foothold for mutual growth through technological development and innovation.

“The agreement will help build a sound and voluntary partnership among first- and second-tier suppliers,” said Kim Seok-ho, chief of corporate cooperation at the Fair Trade Commission, who attended the signing ceremony on Friday.

“The FTC will spare no support.”

By Kim So-hyun (sophie@heraldcorp.com)