Kim Hobin, President of Jungbu Power, "Early Establishment of Payment Linked System"

Kim Ho-bin, President of Korea Midland Power (sixth from the left), and Oh Ki-woong, Vice Minister of the Ministry of SMEs and Startups (seventh from the left), are taking a commemorative photo with representatives of partner SMEs and government officials after concluding an on-site meeting on the 29th of last month.

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Kim Hobin, President of Korea Midland Power Co., is actively working to establish a new win-win growth model, including being the first public institution to introduce the 'Delivery Payment Linkage System.'

The Delivery Payment Linkage System is a system in which the consignor company, when entrusting the manufacture, construction, processing, or repair of goods to the consignee company, records the delivery payment linkage-related matters in the agreement and adjusts and pays the payment accordingly.

A representative from Korea Midland Power stated on the 25th, "Korea Midland Power was the first public institution to participate in this system, which was first introduced as a pilot in June last year, and is working with 338 consignee companies to promote the early adoption of the Delivery Payment Linkage System and improve the transaction environment."

At the initial stage of the system's introduction, participation by small and medium-sized enterprises (SMEs) was sluggish due to concerns about its effectiveness, but Korea Midland Power contributed to the spread of the system by participating as the first public enterprise. On the 29th of last month, Korea Midland Power held an on-site meeting for the Delivery Payment Linkage System attended by Oh Ki-woong, Vice Minister of the Ministry of SMEs and Startups, to discuss the current status of the system's implementation and listen to difficulties in establishing the system.

At this meeting, cooperating SMEs requested the government’s support and thorough management supervision, suggesting the provision of standard indicator information for various raw materials, guaranteeing sufficient consultation periods when concluding linkage agreements, and continuous supplementation of the system to eliminate blind spots.

President Kim emphasized, "We will do our best together with partner SMEs for the success of the Delivery Payment Linkage System, which is an important first step to improve the transaction conditions of SMEs and activate fair trade."

Before implementing the linkage system, Korea Midland Power had been operating a delivery payment adjustment consultation system by reflecting the increase in supply costs of cooperating SMEs in the bidding announcement since December 2021. According to this standard, which was introduced for the first time by a public enterprise, partner companies have recently received an additional delivery payment increase of about 12.8 billion KRW over the past three years.

In particular, Korea Midland Power was recognized for early stabilization of the Delivery Payment Linkage System through the introduction of the adjustment consultation system and received a commendation from the Minister of SMEs and Startups as an 'Excellent Company for Delivery Payment Linkage in 2023' at the end of last year.

President Kim said, "I take pride in contributing to the establishment of a new win-win growth model through the early introduction and effective operation of the Delivery Payment Linkage System." He added, "We will continue to do our best to spread the culture of shared growth and fair trade together with our partner companies."

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