Public Procurement Service Eases Burden of Credit Sales and Rentals for Stockpiled Supplies

The burden of credit sales and rental of stockpiled materials will be eased. On the 26th, the Public Procurement Service announced that it will uniformly reduce the interest rate by 0.3%p and lower the rental release guarantee rate by 10%p to reduce the burden on companies from credit sales and rental of stockpiled materials.

Until recently, the interest rates for credit sales and rental releases ranged from 2.0% per annum (small enterprises) to 5.4% (large enterprises), and the rental release guarantee rate was applied at 120%.

However, following the Public Procurement Service's measures to ease the burden of credit sales and rental of stockpiled materials, the interest rates will be lowered to 1.7% to 5.1% per annum, and the guarantee rate will be reduced to 110%.

Currently, the Public Procurement Service stocks six types of non-ferrous metals?aluminum, nickel, copper, zinc, tin, lead?and economic security items such as urea to respond to supply chain crises, while regularly releasing non-ferrous metals to help stabilize domestic prices and ensure smooth supply of raw materials.

In particular, the credit sales and rental release system is operated for small and medium-sized enterprises facing financial difficulties. Users can purchase stockpiled materials on credit for up to 1.5 billion KRW annually for a maximum of 15 months, or use the stockpiled materials first for up to 9 months and then repay in kind.

Lim Gi-geun, Administrator of the Public Procurement Service, said, “Last year, the usage of credit sales and rental release of stockpiled materials was active, reaching up to 100 billion KRW,” and added, “The reduction in interest rates and guarantee rates is expected to serve as an incentive for small and medium-sized enterprises to actively participate in public stockpiling, which is a key means of supply chain management.”

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