SME and Venture Industry "Welcomes Legislation of Delivery Price Linkage System... Will Contribute to Fair Trade"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] On the 8th, as the bill containing the delivery price linkage system was passed in the National Assembly plenary session, the small and venture business sectors unanimously expressed their welcome.

The Korea Federation of Small and Medium Business (Kbiz) issued a statement on the day, saying, "We welcome the passage of the amendment to the 'Act on the Promotion of Mutual Cooperation between Large and Small and Medium Enterprises (Mutual Cooperation Act)' for the introduction of the delivery price linkage system in the National Assembly plenary session."

Kbiz stated, "Since 2008, we have been promoting the introduction of the delivery price linkage system to correct the unreasonable trading practice of having to bear the rising raw material costs without reflecting them in the delivery price," adding, "However, the system's introduction has been repeatedly blocked due to opposition from large corporations and others."

They added, "The National Assembly's bipartisan agreement to legislate the delivery price linkage system signifies a shared understanding that mutual cooperation between large and small and medium enterprises through receiving fair delivery prices is essential to overcoming the economic crisis."

Finally, they expressed hope that "through the legislation of the delivery price linkage system, an era will come where small and medium enterprises receive just compensation proportional to their efforts."

[Image source=Yonhap News]

The Korea Venture Business Association also welcomed the passage of the delivery price linkage system bill in the National Assembly plenary session, emphasizing that "the delivery price linkage system will be another important opportunity to spread a culture of mutual growth between large and small and medium enterprises."

They further stated, "It will help correct the order of transactions conducted on an uneven playing field, contributing to the stabilization of corporate management, workers' wages, and the creation of safe workplaces, thereby fostering the development of a fair market economy."

Meanwhile, the Korea Venture Business Association suggested that before the full implementation, it is necessary to prepare enforcement ordinances reflecting field voices regarding the scope of delivery payment linkage for consignment contracts between principal and subcontracting companies, adjustment requirements, indicators, and formulas.