[Asia Economy Reporter Junhyung Lee] Gongyoung Home Shopping is fully implementing the Win-Win Payment System.
Gongyoung Home Shopping announced on the 8th that, in accordance with the National Contract Act and the Act on the Promotion of Mutual Cooperation between Large and Small-Medium Enterprises, it will mandate the Win-Win Payment System for all departments' purchases of goods, construction, and service bids. The Win-Win Payment System guarantees partner companies cash payment on the settlement date. Partner companies can also convert payments to cash in advance before the settlement date. It is a system that ensures payment to subcontractors by the contracting party.
From this month, all bid announcements and private contracts will be required to apply the Win-Win Payment System. According to Gongyoung Home Shopping, the scale of Win-Win Payments is estimated to exceed 20 billion KRW annually. Using the Win-Win Payment System offers advantages such as ▲financial income from interest on early payment ▲guarantee of payment stability ▲eligibility for tax credits based on issuance performance.
Previously, Gongyoung Home Shopping introduced the Win-Win Payment System last year. To operate the system, it promoted and encouraged participation among partner companies. However, since the use of the system was left to the discretion of the contracting parties, actual participation was minimal. Gongyoung Home Shopping explained that the mandatory implementation was carried out to revitalize the Win-Win Payment System.
A Gongyoung Home Shopping official said, "The Win-Win Payment System is a rational system that eliminates the harms and unfair cases of existing subcontract contracts," adding, "We will take the lead in ensuring this system is introduced and spread across many institutions."
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