[2022 National Audit] Multiple Large Corporations Including Samsung and GS Have Not Adopted Win-Win Payment Systems

Assemblyman Song Ki-heon "Large corporations that claimed to coexist with SMEs ignore the Win-Win Payment system"

[Asia Economy Reporter Park Sun-mi] The Fair Trade Commission's Win-Win Growth Committee announced the evaluation results of the Win-Win Growth Index for 215 large and medium-sized enterprises, revealing that many large corporations rated as ‘Excellent’ or ‘Good’ in the evaluation are ignoring the adoption of the Win-Win Payment System.

According to data submitted by the Ministry of SMEs and Startups to Assemblyman Song Ki-heon of the National Assembly's Industry, Trade, Energy, SMEs and Startups Committee on the 5th, among the 215 companies evaluated in 2021, 90 companies (41.9%) had not adopted the Win-Win Payment System.

The Win-Win Payment System is a system created to protect partner companies from payment date gaps at each transaction stage, chain bankruptcies caused by bounced checks, and unfair subcontracting transaction practices.

When payments between companies are made through an electronic payment system, subcontractors are guaranteed cash payment on the payment date and can early monetize payment amounts at lower financial costs.

Among the companies that have not adopted the Win-Win Payment System, those rated ‘Excellent’ last year include Samsung C&T Corporation (Construction, Fashion), Samsung Engineering, Innocean, Cheil Worldwide, and GS Engineering & Construction. Companies rated ‘Good’ include Shinsegae DF, NS Shopping, Ottogi, Yuhan-Kimberly, Joongheung Construction, and Hyundai Home Shopping.

Companies rated ‘Excellent’ or ‘Good’ in the Win-Win Growth Index are granted incentives such as exemption from the Fair Trade Commission’s ex officio investigations, preferential participation in the Ministry of Trade, Industry and Energy’s technology development projects, and additional points in public procurement bids by the Public Procurement Service.

In particular, Samsung C&T Corporation (Construction) and Cheil Worldwide did not adopt the Win-Win Payment System despite being rated as ‘Excellent’ companies for the past three years. Companies such as Samsung C&T Corporation (Fashion), Samsung Engineering, Yuhan-Kimberly, GS Retail, and Hoban Construction have received ‘Excellent’ or ‘Good’ ratings for three consecutive years and have benefited from government incentives, but similarly have not adopted the Win-Win Payment System.

Assemblyman Song emphasized, “Large corporations, which have an obligation to coexist with SMEs, are not even adopting the Win-Win Payment System for fair and safe transactions with SMEs,” adding, “We must guarantee the liquidity of SMEs to create a stable economy from the roots.”