Pilot Operation of 'Delivery Unit Price Linkage System' Receives Applications from 335 Companies... Lee Young Says "Exceeded Expectations"

Lee Young, Minister of SMEs and Startups.

[Asia Economy Reporter Donghyun Choi] The Ministry of SMEs and Startups announced on the 4th that a total of 335 companies applied to participate in the pilot operation of the 'Delivery Price Linkage System,' including 41 consignor companies and 294 consignee companies that can sign linkage agreements.

Minister Lee Young of the Ministry of SMEs and Startups said on the day, "We are grateful for the active participation of large and medium-sized enterprises that exceeded expectations," adding, "Now, we have taken a historic step forward by encouraging each other."

Looking at the application status for the pilot operation, based on 41 consignor companies, 29 large enterprises, 7 medium-sized enterprises, and 5 small enterprises applied.

By industry, there are 13 companies in machinery, automobile, and shipbuilding industries; 10 in electrical and electronics; 7 in chemical, metal, and non-metal industries; 4 in food manufacturing; 3 in telecommunications; 2 in construction; and 2 in services.

By region, 17 companies are from Seoul, 11 from Gyeonggi, 2 each from Incheon, Ulsan, Gyeongnam, and Gyeongbuk, and 1 each from Busan, Gwangju, Jeonnam, Chungbuk, and Jeju.

Many companies submitted applications regardless of company size, industry, or region, reflecting the market's expectations for the linkage system and the growing corporate interest in win-win cooperation. During the recruitment process for pilot operation participants, many large companies such as Samsung Electronics, Hyundai Motor Company, POSCO, LG Electronics, Hyundai Heavy Industries, and KT, who discussed the pilot operation plan with the Ministry of SMEs and Startups, played an active role.

Also, eight medium and small enterprises, which are first-tier partners of large companies, applied as consignor companies, raising expectations that the positive effects of the linkage system will be delivered to second- and third-tier partners as well.

Consignor and consignee companies participating in the pilot operation will autonomously conclude mutual delivery price linkage agreements using the special delivery price linkage agreement prepared by the Ministry of SMEs and Startups.

It is also possible to partially modify the contents of the special delivery price linkage agreement or use the subcontract price linkage contract form of the Fair Trade Commission.

The Ministry of SMEs and Startups and the Fair Trade Commission will provide incentives based on the linkage performance of participating companies. Incentives include awarding ministerial commendations, reflecting in the Win-Win Growth Index and Fair Trade Agreement compliance evaluation, preferential treatment in government awards, reduction of penalty points under the Subcontracting Act, exemption from regular subcontract transaction surveys, and additional points when selecting exemplary subcontracting companies.

This pilot operation is significant in that it standardizes the linkage method, which was previously applied mainly by large companies to some raw materials on a monthly or quarterly basis according to a pre-determined method, into a special delivery price linkage agreement or subcontract price linkage contract form, enabling actual use and spread in the field.

Additionally, the Ministry of SMEs and Startups plans to continuously monitor the process of concluding special agreements and adjusting raw material price fluctuations by company size, industry, and consignor-consignee status for companies participating in the pilot operation. Furthermore, it will carefully review the effects and side effects of the pilot operation and actively reflect them in measures to ensure the linkage system is established and spread in the field.

The Ministry of SMEs and Startups and the Foundation for Large and Small Enterprises and Agricultural and Fisheries Cooperation will select the final participating companies by evaluating the appropriateness of the pilot operation plan through a selection evaluation committee. The Ministry plans to hold a 'Delivery Price Linkage System Voluntary Promotion Agreement Ceremony' on the 14th to declare the official start of the delivery price linkage system together with the finally selected participating companies.

Although the application for the pilot operation closed on the 2nd, from the 5th onward, it will switch to a continuous application system, allowing companies wishing to participate in the linkage system to join at any time. Companies participating through continuous applications can also receive incentives provided by the Ministry of SMEs and Startups and the Fair Trade Commission based on their linkage performance.

Jung Ki-hwan, Director of the Win-Win Cooperation Policy Division at the Ministry of SMEs and Startups, said, "With many companies actively participating in the pilot operation of the linkage system, we expect the burden of raw material price increases, which small businesses have shouldered alone, to be alleviated," adding, "We will thoroughly analyze the pilot operation process and spare no support necessary to ensure the linkage system takes root in the market."

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