<기사>Deputy Minister of SMEs and Startups: "Five Major Companies Applied for the Pilot Project of the Delivery Price Linkage System"

[Image source=Yonhap News]

[Asia Economy Reporters Kim Bo-kyung, Lee Hyun-joo] It has been revealed that only five large companies have applied to participate in the pilot project for the delivery price linkage system promoted by the Ministry of SMEs and Startups.

At the 3rd meeting of the National Assembly's Special Committee on Livelihood Economy Stabilization held on the 29th, Rep. Cho Eun-hee of the People Power Party asked, "It was decided to conduct a pilot project and about 30 companies were to be selected. I am curious about how many have expressed their intention to participate so far." Deputy Minister Cho Joo-hyun of the Ministry of SMEs and Startups replied, "There are five companies," adding, "It is difficult to disclose the company names."

Originally, the Ministry of SMEs and Startups announced that it would select around 30 large companies for the pilot project of the delivery price linkage system to be implemented from next month. The selection would be based on voluntary participation by large and small-medium enterprises, considering the number of subcontractors (partner SMEs), industries, and regions.

Based on this, the Ministry plans to evaluate the results after six months and prepare a reasonable legislative plan for the linkage system. Recently, together with the Fair Trade Commission, they established a special agreement (linkage contract) to promote the spread of the linkage system, presenting standards for linking delivery payments, and also held related joint briefings. However, only five companies have officially expressed their intention to participate so far.

Deputy Minister Cho said, "(The Ministry of SMEs and Startups) is actively encouraging participation, and (companies) are also expressing their willingness to participate actively," adding, "There are quite a few companies that have said they have not made a final decision."

Many SMEs are experiencing management difficulties because, despite the sharp rise in major raw material prices due to COVID-19 and the Ukraine invasion, they have not been able to properly reflect these price increases in their delivery payments. The delivery price linkage system reflects the increase in raw material prices in delivery payments, and since 2008, there have been discussions on introducing a system linking raw material prices and delivery prices.

In 2009, instead of the linkage system, the 'Delivery Price Adjustment Consultation System,' which relies on private sector autonomy, was introduced. However, it remains ineffective as SMEs are reluctant to enter consultations fearing disadvantages during contract renewals with large companies.

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