Ministry of SMEs and Startups Launches Pilot Project for Delivery Price Linkage System
335 Companies Including 41 Consigned Firms Apply
"Initially Expected 20-30... Grateful and Hopeful"
Minister Lee Young of the Ministry of SMEs and Startups is speaking at the traditional goods delivery ceremony held at Gwangjang Market in Jongno-gu, Seoul, ahead of the Chuseok holiday on the 5th. [Image source=Yonhap News]
[Asia Economy Reporter Kim Bo-kyung] Lee Young, Minister of the Ministry of SMEs and Startups, stated on the 5th, "I believe that a culture of voluntary implementation of the delivery price linkage system can take root in the market."
Minister Lee made this remark during a meeting with reporters at Gwangjang Market in Jongno-gu, Seoul, regarding the pilot project for the delivery price linkage system being promoted by the Ministry of SMEs and Startups, which received applications from 41 commissioning companies.
The Ministry announced the day before that from the recruitment period of the pilot project, which ran from the 12th of last month to the 2nd of this month, a total of 41 companies including Samsung Electronics, Hyundai Motor Company, and POSCO applied. The number of subcontracting companies that can enter into linkage agreements with these commissioning companies reaches a total of 294.
The Ministry initially planned to select about 30 companies from those recruited between the 12th and 26th of last month to participate in the pilot operation, but since only five companies had applied as of the 28th of last month, the application period was extended once until the 2nd of this month.
Minister Lee said, "As I continue to communicate and meet on-site, I feel the impact. We had expected about 20 to 30 companies to apply."
He added, "There comes a point when the barriers between large and small-to-medium enterprises break down. At first, large companies were cautious and in a standoff, but then they decided to 'try to do well together.' Forty-one commissioning companies applied, and including subcontracting companies, the total exceeded 300," reporting on the application status.
Minister Lee expressed his thoughts, saying, "I believe that a culture of voluntary implementation of the delivery price linkage system can take root in the market. I am grateful and hopeful."
Earlier that day, Minister Lee appeared on KBS Radio's 'Choi Kyung-young's Strong Current Affairs' and explained regarding the delivery price linkage system, "Small and medium enterprises suffered losses because they could not be compensated when the cost of raw materials used in deliveries rose during the contract period. Fourteen years ago, there was an effort to legislate this, but it was adjusted to a voluntary negotiation approach, which did not work at all in the market."
He continued, "What is encouraging this time is that as of last Friday, the application for the pilot project was completed with a total of 335 companies applying. This is a surprisingly large number. The pilot project is planned to run for about six months."
The Ministry of SMEs and Startups plans to hold an 'Autonomous Promotion Agreement Ceremony' on the 14th to declare the start of the delivery payment linkage system with the finally selected participating companies.
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