Song Young-gil, "Application of Seoul City Supply Price Linkage System and Expansion of Public Purchase of SME Products by 500 Billion Won"

On the 16th, Announcement of Livelihood Recovery Fast Track Policy Pledge No. 2
Immediate Application of Delivery Price Linkage System Starting with Seoul City Public Procurement Projects
Immediate Expansion of Public Purchase of SME Products up to 500 Billion Won to Revive Domestic Demand

[Asia Economy Reporter Oh Ju-yeon] Song Young-gil, the Democratic Party of Korea's candidate for Seoul mayor, promised on the 16th that he would implement a delivery price linkage system for public procurement projects immediately upon taking office and expand public purchases from small and medium-sized enterprises (SMEs) to boost domestic demand recovery.

[Image source=Yonhap News]

That afternoon, Candidate Song held a policy announcement press conference at the National Assembly and announced the 'Livelihood Recovery Fast Track (MINT) No. 2' pledge, stating this commitment.

The delivery price linkage system automatically reflects cost increases due to rising raw material prices in the delivery price, a promise made by both major presidential candidates in the last election.

Candidate Song said, "In a situation where recovery from COVID-19 damage is insufficient, recent sharp rises in raw material prices and global supply chain disruptions continue to worsen business conditions for companies. However, the Yoon Seok-yeol administration says it will prioritize market autonomy instead of introducing the delivery price linkage system promised to SMEs. This is essentially giving the decision-making power over delivery prices to large corporations," criticizing the government.

According to Candidate Song's camp, the core of the 'Immediate Implementation of the Delivery Price Linkage System for Seoul City Public Procurement Projects' is to introduce the delivery price linkage system in projects ordered by Seoul City and local public institutions, which account for 22.1% (38.9 trillion KRW in 2020) of the total public procurement contract amount of local governments nationwide. This aims to reduce the burden on SMEs caused by rising raw material prices and foster a fair and cooperative ecosystem to promote domestic demand recovery.

Candidate Song stated, "Starting with Seoul City and public institutions, we will take a leading role in introducing the delivery price linkage system to resolve difficulties SMEs face due to rising raw material prices, and spread a culture of coexistence to large corporations and the private sector, creating an environment where SMEs receive fair compensation for their hard work."

Additionally, to support the recovery of sales channels for SMEs, he pledged to raise Seoul City's purchase rate of SME products to 100% and increase the purchase rate of affiliated local public enterprises to an average of 80%, thereby increasing new purchases from SMEs by 500 billion KRW.

Currently, Seoul City Hall's purchase amount is 2.9 trillion KRW with a 96% purchase rate of SME products, but the purchase rate of SME products by affiliated public enterprises such as SH Corporation is only about 64% on average.

He also promised to significantly reduce the burden on business owners in making SMEs safe workplaces in accordance with the enforcement of the Serious Accident Punishment Act.

Candidate Song emphasized, "We must open a fast track for domestic demand recovery by introducing the Seoul-type delivery price linkage system and immediately expanding public purchases of SME products. We will properly activate the green light of coexistence and recovery to create a Seoul where SME owners feel encouraged."

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