HD Hyundai Infracore Signs Payment Linkage Agreements with 125 Suppliers...Ministerial Commendation Awarded

Ahead of the full implementation of the Delivery Payment Linkage System scheduled for this October, HD Hyundai Infracore signed agreements with 125 partner companies and received a ministerial commendation.

The Ministry of SMEs and Startups held the "Delivery Payment Linkage System On-site Settlement Promotion Conference" on the 31st at the POSCO Center in Seoul. The Delivery Payment Linkage System is a policy where large corporations reflect fluctuations in raw material prices in delivery payments to ease the burden on small and medium-sized partner companies.

This event was significant in that it declared a vision to create a Republic of Korea where large and small businesses coexist through a culture of win-win transactions. The promotion conference was held in three parts: Part 1 was the TF meeting for on-site settlement of the linkage system, Part 2 was the main promotion event, and Part 3 was the POSCO Group roadshow.

In the Part 1 TF meeting, the enforcement decree of the Win-Win Cooperation Act was discussed. The Ministry of SMEs and Startups set the criteria for short-term contracts, which are exceptions to the linkage system, at 90 days, and the threshold for small-value contracts at 100 million KRW, based on feedback from the private sector.

However, as a measure to eliminate blind spots in the system and considering transaction characteristics, a proviso was established that requires compliance with alternative notices issued by the Minister of SMEs and Startups.

Strong sanctions (5.1 penalty points) will be imposed on illegal acts that force or induce non-linkage agreements.

About 200 people attended the main promotion event in Part 2, including Minister Lee Young, People Power Party lawmaker Han Mu-kyung, full-time vice presidents of associations, and company representatives.

Among the companies participating in the pilot operation of the linkage system, 10 outstanding companies including Samsung Electronics, Samsung Heavy Industries, HD Hyundai Infracore, HD Hyundai Heavy Industries, and LS Cable & System received ministerial commendations.

In particular, HD Hyundai Infracore was selected for its excellence in the number of entrusted companies under linkage agreements (125 companies), and LS Cable & System was recognized for outstanding performance in price increases through delivery payment linkage agreements with partner companies.

Lee Jong-sung, Executive Director of KT, presented on the performance of operating the linkage system and the process of discussing its expansion with partner companies. KT recently applied to add 20 more partner companies implementing the linkage system.

Minister Lee stated, "The number of participating companies has increased to 621, and given the characteristics of large corporations, it is expected that more applications will be submitted as the implementation date approaches after June, once legal expert reviews and system adjustments are completed."

He emphasized active cooperation from companies for the on-site settlement of the linkage system, saying, "I hope you will join us in strengthening cooperation from a win-win perspective and creating synergy as one team between large and small businesses."