With "Proposal of Party Bill for Delivery Price Linkage System on 10-11th"... Mandatory Entry in Agreement Document

On the 9th, Civil, Party, and Government Council Meeting on Delivery Price Linkage System Held at the National Assembly

Sung Il-jong, Policy Committee Chairman of the People Power Party (center), is giving a greeting at the public-private council meeting on the introduction of the delivery price linkage system held at the National Assembly in Yeouido, Seoul, on the 9th. (Photo by Yonhap News)

[Asia Economy Reporter Kum Boryeong] The People Power Party plans to submit a bill introducing the 'Delivery Price Linkage System' to the National Assembly as a party resolution as early as the 10th.

Seong Il-jong, the Policy Committee Chair of the People Power Party, told reporters after a public-private-government consultation on the delivery price linkage system held at the National Assembly on the afternoon of the 9th, "We plan to submit the bill to the National Assembly tomorrow (the 10th) or the day after."

The delivery price linkage system allows the increase in raw material prices to be reflected in the delivery price in transactions between primary contractors and subcontractors. Chair Seong explained, "I believe it is very meaningful that a basis has been established for small and medium enterprises to proactively prepare and respond to changing environments in the future."

He added, "This bill is one that no previous government has been able to enact," and said, "It is highly significant that it is the first bill submitted by the Yoon Seok-yeol administration for small and medium enterprises and the vulnerable. When this bill passes, our party will actively support small and medium business owners to conduct predictable management and foster many mid-sized companies like unicorn companies."

The delivery price linkage system was one of President Yoon Seok-yeol's campaign pledges.

The bill on the delivery price linkage system, which the People Power Party will submit as a party resolution, includes a provision requiring mandatory inclusion of delivery price linkage details in contracts. However, if the commissioning company is a small enterprise and both parties, the primary and subcontractor, agree not to link delivery prices, an exception applies.

Chair Seong said, "The bill includes a clause that clearly holds accountable those who abuse their superior bargaining position due to the tyranny of the primary contractor."

Additionally, the bill plans to include a provision allowing the Minister of SMEs and Startups to conduct ex officio investigations of companies in the position of the primary contractor. It also prepares a legal basis for the Minister of SMEs and Startups to review disputes related to delivery price linkage and issue corrective recommendations or orders.

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