Korea Federation of SMEs Guides on Utilizing Supply Price Indexation System: "Minimizing Impact of Middle East Conflict"

The Korea Federation of SMEs has introduced ways for small and medium-sized manufacturing companies, which are currently facing sharp increases in raw material prices due to the recent Middle East conflict, to utilize the supply price indexation system.

Exterior view of the Korea Federation of Small and Medium Business in Yeongdeungpo-gu, Seoul. Korea Federation of Small and Medium Business

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On the 17th, the Korea Federation of SMEs announced that it held a 'Seminar on Strategies for Utilizing the Supply Price Indexation System' at its headquarters in Yeongdeungpo-gu, Seoul, for staff members of cooperatives and small and medium-sized enterprises.

The seminar covered the following topics in order: strategies for utilizing the supply price indexation system and an explanation of the system, practical steps for concluding indexation agreements, and guidance on support programs for the supply price indexation system.

As the 'Supply Price Indexation Expansion Support Headquarters' designated by the Ministry of SMEs and Startups, the Korea Federation of SMEs is working to promote and establish the system in the field through a range of initiatives, including this seminar, on-site briefings, and consulting support for the indexation system.

Yang Chanhoi, Executive Director of the Korea Federation of SMEs, stated, "Due to the prolonged Middle East conflict, the prices of key raw materials such as naphtha have surged in a short period of time, increasing cost burdens for SMEs. We will continue to provide guidance and promote the supply price indexation system to ensure its swift adoption in the field, and we will also actively support indexation agreement consulting, including verification of major raw materials."

The Korea Federation of SMEs is continuously recruiting companies to participate in the 'Support Project for the Conclusion of Indexation Agreements, Including Verification of Major Raw Materials' in order to assist with the conclusion of supply price indexation agreements. More details can be found on the official website of the Korea Federation of SMEs.

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