Two Additional Settlement Agreements Reached in Delivery Payment Disputes Between Consignor and Consignee Companies

Ministry of SMEs and Startups Holds 6th Win-Win Adjustment Committee Meeting

On the 23rd, Park Young-sun, Minister of SMEs and Startups, is delivering a greeting at the 6th Win-Win Mediation Committee held at the Supreme Prosecutors' Office.

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) announced on the 23rd that it held the 6th meeting of the Win-Win Mediation Committee at the Grand Conference Room of the Supreme Prosecutors' Office. This meeting was the first held since the enforcement of the 'Regulations on the Establishment and Operation of the Win-Win Mediation Committee (Presidential Decree)' in June, which legalized the committee.

At the meeting, additional mediation agreements on payment disputes between consignors and consignees were reached, and five agenda items, including the Korea Federation of SMEs' establishment of the 'Standard Joint Technology Development Contract,' were reviewed. First, two additional payment dispute cases that were mediated after the 5th meeting were reported. Consignee company A, an electronic components manufacturer, applied for dispute mediation to the Ministry because consignor company B had not increased payment since 2011. Although there was initially a significant difference in opinions between the parties, the Ministry's repeated fact-checking and active mediation led to a voluntary agreement and mediation was established. Also, consignee company C, an automotive parts design company, applied for dispute mediation because consignor company D only paid part of the originally contracted amount, and similarly, mediation was established through the Ministry's continuous mediation. As a result, a total of 11 mediation agreements have been reported since the establishment of the Win-Win Mediation Committee.

At this Win-Win Mediation Committee meeting, the Korea Federation of SMEs' proposal for the 'Standard Joint Technology Development Contract' was also reported. This is intended to allow SMEs to participate in joint technology development with large companies without worrying about technology leakage. Initially, the Federation reported the standard joint technology development contract at the 5th Win-Win Mediation Committee meeting, but the committee requested supplementation due to the absence of clauses related to the technology data escrow system and methods for sharing profits from jointly developed outcomes. Accordingly, the Federation revised and supplemented the contract by gathering opinions from participating institutions and committee members of the Win-Win Mediation Committee. The committee agreed that the revised contract would enhance SMEs' ability to respond in case of disputes such as technology leakage.

Minister Park Young-sun of the Ministry emphasized, "As the number of Win-Win Mediation Committee meetings increases, the number of mediation cases also rises, and tangible results are emerging in the field." "Consequently, interest and expectations surrounding the Win-Win Mediation Committee have grown, and with those expectations comes a heavy responsibility. The committee must strive to ensure that smaller companies no longer shed tears due to the unfair practices of large corporations."