The Win-Win Mediation Committee Supports a Total of 20 Mediation and Arbitration Cases This Year

7th Meeting of the Win-Win Adjustment Committee Held on the 28th

On the 28th, Minister Park Young-sun is delivering the opening remarks at the 7th Win-Win Adjustment Committee meeting.

[Asia Economy Reporter Kim Cheolhyun] The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) announced on the 28th that it held the 7th meeting of the Win-Win Mediation Committee at the Fair Trade Commission's main conference room in Sejong City. This 7th meeting, the last quarterly meeting of the Win-Win Mediation Committee this year, reviewed four agenda items including the status of mediation and arbitration of unfair cases and the activation plan for dispute mediation linked between the prosecution and the Ministry this year.

First, nine additional unfair cases that were successfully mediated since the 6th meeting were reported. This is the highest number of mediation cases reported since the launch of the Win-Win Mediation Committee, and combined with the 11 cases reported up to the 6th meeting, the total number of mediation and arbitration cases reported to the committee reaches 20.

Looking at major cases of successful mediation, contracted company A, a specialized company in disassembling and subcontracting used home appliances, applied for dispute mediation with the Ministry because the commissioning company B partially withheld payment for delivered goods. Initially, the difference in the settlement amounts proposed by both parties was large, making mediation difficult, and the business relationship was expected to be severed due to the dispute. The Ministry, after several fact-checking sessions, considered that if the business relationship between the two companies was severed, commissioning company B would find it difficult to immediately find a replacement service provider for A, and A would inevitably face difficulties in securing cash liquidity. Therefore, the Ministry included a 'contract renewal clause' in the mediation recommendation to lead the parties to an agreement. Also, contracted company C, a civil engineering construction company, applied for dispute mediation with the Ministry because commissioning company D partially withheld payment for construction work. Although there were significant disagreements between the parties in this case as well, continuous mediation by the Ministry led to an agreement where D paid the full amount of the unpaid delivery fees.

At the 2nd Win-Win Mediation Committee meeting, it was decided to link prosecution cases to the Ministry’s mediation procedures for the prompt relief of victim companies. So far, a total of 10 cases have been linked, with 2 cases resolved through mediation. Based on these achievements, the Ministry and the prosecution reported at the 7th meeting the 2021 activation plan for dispute mediation linked between the prosecution and the Ministry, which includes expanding linked mediation cases and shortening processing deadlines. With the implementation of the activation plan, the number of local prosecution offices and branch offices linking prosecution investigation cases to the Ministry’s mediation will increase from 11 to 20, and cases where prosecutors decide to link mediation will have simplified required documents, allowing mediation procedures to start immediately, unlike general mediation cases. Accordingly, the processing period of about one month previously needed for parties to prepare documents is expected to be shortened.

The Ministry also compiled a white paper summarizing the progress and achievements of the Win-Win Mediation Committee and reported it to the committee. The white paper was produced to faithfully record all major matters within the scope of disclosure for each meeting, while emphasizing the committee’s key achievements by grouping them into a separate chapter. From the 29th, it will be available for free download on the Comprehensive Portal for Consignment Transactions and the Ministry’s website.

Minister Park Young-sun of the Ministry said, "This year marks the institutional establishment of the Win-Win Mediation Committee and the year when related ministries and organizations joined forces to actively start mediation and arbitration." "On June 30, the regulations on the establishment and operation of the Win-Win Mediation Committee were enforced, legalizing the committee. Cooperation among ministries, such as linking cases with the prosecution, technical judgment support from the Korean Intellectual Property Office, and sharing case handling know-how with the Fair Trade Commission and the National Police Agency, was concretely and practically implemented, enabling the resolution of 20 cases through mediation," she emphasized. Minister Park added, "Next year, with the determination to start Season 2 of the Win-Win Mediation Committee, we will promote various measures to resolve more unfair cases through mediation and arbitration and further activate the committee."

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