Ministry of SMEs and Startups, First Government Agency to Implement Win-Win Payment System

Function to Directly Pay Delivery Fees to Subcontractors
Utilized for Win-Win Payment Budget Disbursement

Minister Lee Young of the Ministry of SMEs and Startups is demonstrating the win-win payment system.

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Lee Young) announced on the 4th that it has made the first-ever payment using Win-Win Payment among government agencies. With the Ministry of SMEs and Startups making payments through Win-Win Payment for office supplies, individual business owners supplying office goods can reliably receive cash from the Ministry within the payment date (within 60 days after delivery), and if funds are needed earlier, they can secure cash in advance by discounting with the Ministry of SMEs and Startups' credit.

Since July, the Ministry of SMEs and Startups has prepared for Win-Win Payment disbursements by signing an agreement with NongHyup Bank and guiding office supplies suppliers on how to use Win-Win Payment, undergoing a pilot operation process. During the pilot operation period, it was confirmed that office supplies suppliers who received Win-Win Payment paid 90% of the received Win-Win Payment amount as delivery payments to individual business owners supplying stationery.

Win-Win Payment is a payment system that directly pays transaction amounts to lower-tier partners and supports discounts based on transaction details. In particular, when discounted through Win-Win Payment, unlike promissory notes, the discount is based on the credit of the Ministry of SMEs and Startups rather than the lower-tier partners, so even if a default occurs, repayment claims cannot be exercised against the lower-tier partners, preventing chain defaults. Furthermore, if a company receiving Win-Win Payment pays delivery amounts to other companies such as lower-tier partners through Win-Win Payment, benefits such as 0.1~0.5% tax support on Win-Win Payment usage, additional points when applying for Win-Win type smart factory projects, a 0.2% reduction in technology guarantee fees, and increased policy fund loan limits are also provided.

So far, Win-Win Payment has steadily grown in the private sector. By the end of July this year, a cumulative total of 762.2623 trillion KRW had been paid, and especially for the past four consecutive years since 2018, the annual payment performance has exceeded 100 trillion KRW. To expand Win-Win Payment, which had been limited to the private sector, into the public sector, the Win-Win Cooperation Act amendment was implemented in October last year. Until now, no government ministries or local governments had used Win-Win Payment, but with the Ministry of SMEs and Startups starting to make payments through Win-Win Payment, the path to expanding into the public sector has been opened. It is expected that if Win-Win Payment spreads to all government agencies and even 10% of payments for goods, services, and construction are made through Win-Win Payment, it will newly supply more than 2.2 trillion KRW annually in liquidity to small and medium enterprises.

Minister Lee Young of the Ministry of SMEs and Startups stated, "If the government and local governments use Win-Win Payment, it will be easier for companies supplying to the state and their partner companies to secure cash, and the flow of funds will become transparent, improving the efficiency of budget execution," adding, "As the responsible department, the Ministry of SMEs and Startups will take the lead in introducing Win-Win Payment, actively sharing operational know-how with related ministries and local governments, and cooperating to ensure that Win-Win Payment spreads throughout the budget execution of national institutions."

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