Sungwook Cho: "From This Year, Fair Trade Agreement Bonus Points Will Be Granted When Supporting COVID-19 Affected Partner Companies"

Chairman Jo Sung-wook of the Fair Trade Commission (file photo) [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Joo Sang-don] On the 19th, Cho Sung-wook, Chairman of the Fair Trade Commission, announced, "Starting this year, we will immediately grant additional points in the Fair Trade Agreement evaluation to companies that support partner companies struggling due to the COVID-19 pandemic, in order to encourage companies' efforts for win-win cooperation."

On this day, Chairman Cho visited Yura Corporation, an automobile parts manufacturer located in Chungbuk, and urged efforts to overcome the industry's crisis related to COVID-19 and to promote win-win cooperation.

Yura Corporation, as a mid-sized company, has been participating in the Fair Trade Agreement evaluation since 2015 and has been actively striving for win-win cooperation by paying cash and using standard contracts when dealing with partner companies.

Chairman Cho emphasized, "Please continue to make efforts so that the culture of coexistence with subcontractors does not regress even in difficult situations," and added, "These efforts should also spread to other fields."

At this event, Chairman Cho introduced the standard subcontract agreements prepared and distributed by the Fair Trade Commission in 46 sectors, including the electronics and automobile industries, to induce exemplary transaction practices between businesses. In particular, he introduced the standard subcontract agreement in the automobile manufacturing sector, which stipulates that delay penalties should not be imposed on subcontractors who fail to meet delivery deadlines due to force majeure reasons such as typhoons, floods, fires, and quarantine measures, urging the industry to actively utilize this to prevent subcontractors in relatively disadvantaged positions from suffering disadvantages due to reasons beyond their control.

Meanwhile, Hyundai Motor Company, which participated in the on-site visit, introduced multifaceted efforts to overcome difficulties together with small and medium parts partner companies. Hyundai Motor is providing 300 billion KRW in interest-free management funds and early payment of 700 billion KRW in delivery payments to partner companies. Additionally, it is encouraging first-tier partners to advance payment of delivery fees to second- and third-tier partners.

This content was produced with the assistance of AI translation services.