Over 2,000 Companies Participating in the Delivery Payment Linkage System for Partner Firms

Green Light for Plan to Recruit 6,000 Companies by Year-End

The Ministry of SMEs and Startups (Minister Lee Young) announced that as of the 2nd, 2,034 companies are participating as partner companies in the Payment Price Linkage System, indicating that the on-site establishment of the Payment Price Linkage System is progressing smoothly.

Partner companies in the Payment Price Linkage System are those that voluntarily implement the system using the special agreement on payment price linkage from the Ministry of SMEs and Startups or the subcontract payment linkage contract from the Fair Trade Commission. The Ministry of SMEs and Startups plans to involve more than 6,000 companies as partner companies by the end of the year to ensure on-site establishment.

Minister Lee Young is speaking at the Task Force meeting on the linked payment system.
[Image source=Yonhap News]

In June, 434 companies applied to become partner companies, 653 companies in July, and already 320 companies applied within just two days in August, continuing a steep upward trend. The composition of partner companies is also showing positive changes. In the case of large corporations, applications are spreading from individual large corporations to group-affiliated companies applying collectively. Recently, five major affiliates of Hanwha Group simultaneously participated as partner companies.

First-tier subcontractors of large corporations are now participating as consignors, with second-tier subcontractors as consignees in the partner companies. For example, Company D, which participated as a consignee in the pilot operation last year, joined as a consignor along with seven subcontractors in May this year. Public enterprises such as Korea Midland Power, Korea Western Power, Korea Southern Power, Korea East-West Power, and Korea South-East Power are also participating as partner companies, expanding the application scope of the linkage system.

The preparation of subordinate laws for the 'Win-Win Cooperation Act' and the 'Subcontracting Act' and the establishment of support systems for the on-site establishment of the Payment Price Linkage System are also progressing smoothly. The legislative notice for the amendment of the Enforcement Decree of the Win-Win Cooperation Act was completed on the 2nd, and the Fair Trade Commission will issue a legislative notice for the amendment of the 'Enforcement Decree of the Subcontracting Act' by the 24th of this month. Support systems are also being operated, such as designating the Foundation for Large and Small Enterprises and Agriculture, Forestry and Fisheries Cooperation as the headquarters for spreading the payment price linkage system.

Jung Ki-hwan, Director of the Win-Win Cooperation Policy at the Ministry of SMEs and Startups, said, "By holding roadshows and recruiting 6,000 partner companies, we will achieve the primary goal of on-site establishment of the Payment Price Linkage System and strive to establish the system as a culture of win-win transactions between companies, fulfilling the 14-year wish of the small and medium business community."

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