"Spread of Proper Payment Culture for Large and Medium-Sized Enterprises' Delivery Fees" (Comprehensive)

The 32nd Small and Medium Business Week Opens
Launch of the Delivery Price Adjustment Committee
Kim Ki-moon, Chairman of the Korea Federation of SMEs
"Expecting a Win-Win Role Between Large and Small Businesses"

Kim Ki-moon, President of the Korea Federation of SMEs (fifth from the left in the front row), and Park Young-sun, Minister of SMEs and Startups (sixth from the left in the front row), are attending the launch ceremony of the Large and Small Business Supply Price Adjustment Committee held at the Korea Federation of SMEs in Yeouido, Seoul, on the 11th, posing for a commemorative photo with related personnel.

[Asia Economy Reporter Kim Daeseop] The festival for small and medium-sized enterprises (SMEs), 'SME Week,' opened on the 11th at the Korea Federation of SMEs in Yeouido, Seoul. Marking its 32nd year, a total of 43 events will be held across 17 cities and provinces nationwide until the 15th. The Korea Federation of SMEs held the 'Large and Small-Medium Enterprise Delivery Price Adjustment Committee Inauguration Ceremony' as the first event of the opening ceremony.

This year's SME Week is held under the slogan "A Brighter Tomorrow for SMEs, a Happy Future for Korea." It is hosted by 16 SME organizations, organized by 17 related SME institutions, and supported by 10 central administrative agencies and 15 metropolitan local governments.

In particular, considering the social atmosphere due to the novel coronavirus infection (COVID-19), large-scale crowded events and event-type activities have been minimized. Only key events aimed at overcoming the SME crisis and revitalizing the regional economy are being conducted.

The Large and Small-Medium Enterprise Delivery Price Adjustment Committee, launched through SME Week, was established following the government's push to grant the Korea Federation of SMEs the authority to negotiate delivery price adjustments. The committee is an organization created to establish an internal review process tailored to on-site delivery price adjustments and to specify detailed implementation plans. It consists of 17 private members, including representatives from SME sectors and various experts. Seo Byung-moon, Chairman of the Korea Foundry Industry Cooperative, was appointed as the chairman.

Chairman Seo said, "It is not easy for SMEs, who are thoroughly in the weaker position in contractual relationships, to demand delivery price increases from large corporations themselves," adding, "We will actively strive through the committee to spread a culture of appropriate delivery price payments."

Korea Federation of SMEs Chairman Kim Ki-moon emphasized, "In a situation where the gap between large and small-medium enterprises is widening day by day, the problem of delivery price undercutting must be eradicated," and added, "I hope the Large and Small-Medium Enterprise Delivery Price Adjustment Committee will serve as a catalyst not only to resolve delivery price issues but also to foster win-win cooperation between large corporations and SMEs."

Kim Ki-moon, President of the Korea Federation of SMEs (second from right), and Seo Byung-moon, Chairman of the Large and Small Business Supply Price Adjustment Committee (third from right), are attending the committee appointment ceremony held on the 11th at the Federation of SMEs in Yeouido, Seoul, discussing the activities of the adjustment committee with related personnel.

Chairman Kim said, "The Federation established a Standard Cost Center last year and is currently calculating standard prices by industry, which will be provided as reliable data during the delivery price adjustment process with large corporations. Unfair trading practices must now be broken. We should not only comply with laws and regulations but also emphasize voluntary win-win cooperation."

The inauguration ceremony was attended by Chairman Kim Ki-moon, Minister Park Young-sun of the Ministry of SMEs and Startups, Vice Chairman Ji Cheol-ho of the Fair Trade Commission, Chairman Jo Jeong-sik of the Democratic Party Policy Committee, and Chairman Kim Dong-myeong of the Korean Confederation of Trade Unions, among others.

Minister Park Young-sun said, "If the Korea Federation of SMEs takes the lead in adjustment negotiations on behalf of SMEs, more realistic negotiation results can be achieved," and urged, "Since amending the Win-Win Cooperation Act is necessary to grant the Federation the authority to negotiate adjustments, special attention and cooperation from SME entrepreneurs are required."

Following the inauguration ceremony, events such as the "SME Cooperative Forum: The Power of Connection Among SMEs" on the 13th and the "Discussion on Overcoming the COVID-19 SME Crisis and Sustainable Growth" on the 14th will be held.

The Korea Federation of SMEs and other SME organizations and support institutions have voluntarily designated and operated the third week of May as 'SME Week' annually since 1989. Since July 2011, it has been codified under Article 26 of the Framework Act on Small and Medium Enterprises and Article 17 of its Enforcement Decree, operating as a statutory week.