First Meeting Between Large and Small-Medium Enterprises to Resolve 'Napum Danga' Issue

Minister Lee Young, Ministry of SMEs and Startups [Photo by Yonhap News]

[Asia Economy Reporter Donghyun Choi] On the 17th, the Ministry of SMEs and Startups announced that it held the ‘Delivery Price Linkage Task Force (TF) Meeting between Large and Small-Medium Enterprises’ at the Win-Win Growth Committee in Jung-gu, Seoul, with participation from both large corporations and small and medium-sized enterprises (SMEs).

This meeting was convened under the chairmanship of Minister Lee Young of the Ministry of SMEs and Startups to collect on-site, practical opinions from the industry regarding the delivery price linkage system. It is highly significant that both large corporations and SMEs came together to resolve the long-standing issue of the delivery price linkage system, which has been a key concern for the SME sector.

In his opening remarks, Minister Lee said, "For the past 14 years, the SME sector has continuously raised the necessity of the delivery price linkage system, but discussions have not progressed and have only stalled. Now is the time to open the door to mutual growth together, and the Ministry of SMEs and Startups will take the lead."

He also emphasized, "A win-win model must be established where neither large corporations nor SMEs have to sacrifice, and the delivery price linkage system should not become an unnecessary regulation."

Representatives of SMEs, heavily affected by the sharp rise in raw material prices such as ready-mixed concrete, steel, and plastics, participated in the meeting to present the current status and difficulties faced by the industry. Attendees from large corporations including Samsung Electronics, Hyundai Motor Company, Hyundai Heavy Industries, POSCO, and LG Electronics shared cases of delivery price linkage they are implementing with their partner companies and exchanged opinions.

Starting with this meeting, the Ministry of SMEs and Startups plans to hold expert participation TF meetings to precisely design the delivery price linkage system by gathering field opinions. Additionally, before amending the Win-Win Cooperation Act to introduce the delivery price linkage system, the ministry will prepare and distribute a standard contract and guidebook containing delivery price linkage clauses for companies to utilize.

A ministry official stated, "We plan to pilot the delivery price linkage system from the second half of this year to promote case expansion, and also consider incentive measures for companies that introduce and operate the delivery price linkage system. Based on the outcomes of the delivery price linkage TF, we will prepare an introduction plan for the system and actively participate in discussions on recently proposed legislative amendments related to the delivery price linkage system to reflect the opinions of the industry and field."

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