Dongseo Power, Waives Liquidated Damages for Suppliers Delayed Due to COVID-19

Partner Company Exempt from 11 Million Won Monthly Compensation Liability

[Asia Economy Reporter Moon Chaeseok] Korea East-West Power has decided to exempt delay penalties for partner companies whose deliveries were delayed due to the novel coronavirus infection (COVID-19). Partner companies will not have to pay delay penalties amounting to 11 million KRW per month.

On the 24th, East-West Power held the 1st Special Subcommittee on Contract Affairs and resolved not to impose delay penalties on the supplier of the drone detection system for the Dangjin Thermal Power Plant, whose delivery was delayed due to COVID-19, until the situation is resolved.

Delay penalties are compensations paid when a contracting party fails to fulfill contractual obligations within the deadline without justifiable reasons.

Earlier, on the 28th of last month, East-West Power established special guidelines containing the basis and procedures for exempting delay penalties to ensure that partner companies do not suffer disadvantages due to delivery delays caused by work difficulties and parts supply disruptions amid the COVID-19 crisis, as part of comprehensive support measures to overcome COVID-19 damage.

An East-West Power official stated, "We will continue to make efforts through proactive and reasonable deliberations to minimize losses for partner companies caused by COVID-19."