Seobu Power Alleviates Management Burden for Partner SMEs... Implements 'Zero Performance Bond Cost' Policy

Signed Business Agreement with Capital Goods Deduction Association on the 28th
Minimizing Economic and Administrative Burdens in Business Contracts

Korea Western Power Headquarters Building

[Asia Economy Reporter Kim Bo-kyung] Korea Western Power signed a business agreement on the 28th for the 'Zero Implementation Guarantee Cost Project,' which alleviates the contract fulfillment burden for partner small and medium-sized enterprises (SMEs) in cooperation with the Capital Goods Mutual Aid Association.

This agreement was promoted to reduce the economic and administrative burdens on partner SMEs struggling due to the COVID-19 pandemic.

SMEs that win service contracts must incur costs such as stamp duty and premiums for contract, advance payment, and defect implementation guarantee insurance to guarantee contract fulfillment.

In particular, although the advance payment implementation guarantee insurance was introduced to improve SMEs' cash liquidity, it is true that the economic burden is significant because the full amount of the advance payment must be guaranteed.

Korea Western Power decided to fully reimburse the issuance costs of contract, advance payment, and defect implementation guarantee insurance for SMEs affiliated with the Capital Goods Mutual Aid Association that signed contracts after September 1 to minimize these burdens on partner companies.

A Korea Western Power official said, "We believe this project will be a great support to the management environment of SMEs," adding, "We will continue to listen carefully to voices from the field and promote effective win-win growth projects from the perspective of companies."

Meanwhile, Korea Western Power, together with IBK Industrial Bank of Korea, established a 75 billion KRW win-win growth cooperation loan fund in 2017 to support micro-enterprises with low-interest loans to ease the burden on partner SMEs and local small business owners.

This year, to help micro-enterprises recover from damages, financial procurement costs totaling 200 million KRW were supported for 73 partner companies and small business owners located in Taean.

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