Ruling Party's Euljiro Committee Launches "Social Dialogue" for Ascon and Paint Industries Amid Soaring Construction Material Prices

Launch of Social Dialogue Organizations on April 21

Plans to Discuss Prioritizing Domestic Supply and Abolishing Post-Settlement System

On April 21, the Democratic Party of Korea announced plans to develop win-win measures to minimize the damage to the asphalt concrete and paint industries, which are experiencing supply-demand instability due to the prolonged situation in the Middle East.

The Euljiro Committee of the Democratic Party launched separate social dialogue bodies for the asphalt concrete and paint industries on this day to address the crisis triggered by the Middle East conflict. The launch ceremony was attended by industry representatives as well as officials from the Ministry of Trade, Industry and Energy, the Ministry of Land, Infrastructure and Transport, the Fair Trade Commission, and the Public Procurement Service.

Min Byungduck, Chair of the Euljiro Committee of the Democratic Party of Korea, is delivering a greeting at the launch ceremony of the social dialogue body for the asphalt concrete and paint industries held at the National Assembly Members' Office Building on the 21st. Photo by Yonhap News

Key agenda items for the social dialogue in the asphalt concrete industry include: prioritizing domestic supply for part of the export volume, abolishing the post-settlement system, reducing sharp price increases, implementing the price indexation system for procurement payments in advance, and ensuring exemption from liquidated damages and extension of construction periods in the event of project suspensions.

The social dialogue for the paint industry will also discuss measures to stabilize prices, such as reducing sharp price increases, as well as strategies to expand the supply of paint and waterproofing materials.

Min Byungduck, the Democratic Party lawmaker who chairs the Euljiro Committee, said, "Our economy is facing severe supply disruptions across the entire supply chain due to unstable crude oil supply caused by the prolonged Middle East conflict, which is affecting not only oil and naphtha but also asphalt, a key material for road construction. The burden of soaring raw material prices is being passed down to the construction materials market, including paint and waterproofing materials, and ultimately to the specialized construction companies that use these materials."

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