Holding of the Unfair Trade Reporting Center Operation Council Meeting

Guidance on Dispute Mediation System for Consignment under the Revised Win-Win Cooperation Act

The Ministry of SMEs and Startups (Minister Lee Young) announced on the 7th that it held an Unfair Trade Reporting Center Operations Council at the Ramada Seoul Dongdaemun Hotel. Seventeen cooperative and affiliated organizations, including the Korea Federation of SMEs, the Korea Venture Business Association, the Korea Association of Small and Medium Business Technology Innovation, and the Korea Women Venture Association, attended the meeting.

This event was organized in consideration of recent field reports that small and medium-sized enterprises are facing financial difficulties due to high interest rates. It aimed to request active cooperation from member companies to ensure timely and proper payment of delivery fees in consignment transactions at the Unfair Trade Reporting Centers operated by organizations such as the Korea Federation of SMEs.

Jeong Gi-hwan, Director of Win-Win Cooperation Policy at the Ministry of SMEs and Startups (center of the first row), is taking a commemorative photo with attendees at the '2023 Unfair Trade Reporting Center Operation Council' held on the 7th at Ramada Seoul Dongdaemun in Jung-gu, Seoul.

A representative from the reporting center attending the meeting stated, "Even if the consignor does not pay the delivery fee, it is difficult to report due to concerns about severing business relations," and suggested, "It would be good to have a support system for cost data analysis and calculation related to the delivery fee linkage system."

During the Operations Council, an awards ceremony was also held to present the Minister of SMEs and Startups Award to organizations and individuals with outstanding performance in operating the reporting centers. The group awards were given to three organizations: the Korea Venture Business Association, the Korea Association of Small and Medium Business Technology Innovation, and the Korea Surface Treatment Cooperative. The individual awards were presented to two people: Deputy General Manager Kim Ho-young of the Foundation for Large, Small, and Medium Enterprises and Agriculture-Fishery Cooperation, and Senior Son Young of the Korea Specialty Construction Association.

Following the awards ceremony, an explanation was given about the revised "Act on the Promotion of Mutual Cooperation between Large Enterprises and Small and Medium Enterprises," which has been in effect since September 29. According to the revised Mutual Cooperation Act, the mediation agreement prepared through voluntary adjustment between parties at the consignment dispute mediation council is granted civil enforceability, and administrative sanctions are exempted if the agreed contents of the mediation agreement are implemented or if voluntary damage relief is provided before the Ministry of SMEs and Startups initiates an investigation.

Jeong Ki-hwan, Director of the Win-Win Cooperation Policy at the Ministry of SMEs and Startups, who presided over the Operations Council, said, "Since the delivery fee linkage system, which has been a long-standing wish of the SME sector, was implemented in October this year, the number of companies participating in the linkage system has already surpassed 10,000, indicating that the system is steadily spreading in the field." He added, "We will actively review the suggestions made at the Operations Council and strive to create an environment where consigned companies receive delivery payments on time in the future."