Korea Federation of SMEs Designates 'Payment Price Linkage Expansion Support Headquarters'

Establishing On-Site Implementation of Payment Linkage System
Performing Support Tasks for Small and Medium Enterprises

The Korea Federation of SMEs announced on the 29th that it has been designated as the Payment Price Linkage Expansion Support Headquarters (hereinafter referred to as the ‘Linkage Support Headquarters’) following the review and resolution by the Ministry of SMEs and Startups.

The Linkage Support Headquarters is a specialized institution established to support the expansion of the payment price linkage system under Article 22-4 of the Act on the Promotion of Mutual Cooperation between Large Enterprises and SMEs (Mutual Cooperation Act). It carries out necessary support projects for system expansion, including ▲providing information on raw material prices and price indices ▲education and consultation on payment price linkage ▲discovering best practices, with the designation period lasting two years from the date of designation.

The Korea Federation of SMEs has actively participated in discussions on the legalization of the payment price linkage system, proposing SME opinions to the government, and after legalization, has worked to expand the system by participating in the Payment Price Linkage On-site Settlement Promotion Committee chaired by the Minister of SMEs and Startups, holding linkage system roadshows, and supporting cost analysis for member companies.

Key plans include providing raw material price information, holding sector- and region-specific briefings, and conducting contract conclusion education to enable SMEs to easily utilize the payment price linkage system.

In particular, through the operation of the ‘Payment Price Linkage and Adjustment Consultation Support System,’ it will support SMEs with a self-verification service for supply cost fluctuation rates and provide raw material price information published by professional price survey institutions free of charge. Additionally, it plans to support smooth linkage contract conclusion for SMEs by offering legal advice related to payment price linkage contract conclusion and supporting cost analysis of SMEs’ own products.

Yang Chan-hoe, Head of the Innovation Growth Headquarters at the Korea Federation of SMEs, said, “The SME sector has great expectations for the payment price linkage system, which took 14 years to legalize,” adding, “Going forward, as the Linkage Support Headquarters, the Korea Federation of SMEs will systematically support SMEs so that they face no difficulties in concluding linkage contracts and will quickly establish the system on the ground.”

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