Ministry of SMEs and Startups: "Win-Win Payment Achievements Realized by Large and Small Businesses, Private and Public Sectors"

10 Years Since the Introduction of Win-Win Payment This Year
Commending Contributors to Its Expansion

The Ministry of SMEs and Startups announced on the 27th that it held a commemorative event for the ‘Day of Expanding Win-Win Payment’ at the K-BIZ Hall of the Korea Federation of SMEs in Seoul.

The 'Day of Expanding Win-Win Payment' commemorative event held in 2022. Provided by the Ministry of SMEs and Startups

Now in its 4th year, this event was organized to encourage those who contributed to the expansion of win-win payment and to promote excellent cases of win-win payment.

First, 20 commendations from the Minister of SMEs and Startups were awarded to organizations and individuals who contributed to the expansion of win-win payment. Nine organizational commendations were given to Incheon Metropolitan City, Busan Urban Corporation, Incheon Transit Corporation, Korea Marine Environment Management Corporation, Shinheung Global, Sinsung Delta Tech, HL Tech, Sungwoon Electronics, and YG Tech.

Eleven individual commendations were awarded to Kim Hak-jun, Senior Manager at LG Electronics; Park Jung-hoon, Senior Manager at Hyundai Transys; Lee Hyun-jung, Officer at Suncheon City, Jeollanam-do; Kim Sang-mi, Officer at Daegu Metropolitan City; Cho Hyun-joo, Deputy General Manager at Korea Midland Power; Lee Sang-woo, General Manager at Korea East-West Power; Kim Jung-yeon, General Manager at Busan Transportation Corporation; Lim Chae-ryeong, Assistant Manager at Industrial Bank of Korea; Lee Jong-heon, Assistant Manager at IM Bank; Park Chan, Deputy General Manager at Woori Bank; and Lee Hye-ok, Assistant Manager at the Foundation for Large and Small Business, Agriculture and Fisheries Cooperation.

Win-win payment was introduced in 2015 to enable partner SMEs that have business relationships with prime contractors (large corporations and public institutions) to secure stable payment collection for supplies and quick cash liquidity. When the prime contractor uses win-win payment to pay for supplies, each subcontractor is guaranteed cash payment on the settlement date. Even before the settlement date, there is an advantage of early cash conversion at low financial costs by applying the prime contractor’s high credit rating. Unlike promissory notes, in particular, if the purchasing company goes bankrupt, financial institutions cannot exercise the right of recourse against the lower-tier suppliers, preventing a chain of bankruptcies.

Based on these advantages, a cumulative total of 1,156 trillion KRW has been paid from the first year of win-win payment introduction through the end of last month. Since 2018, the annual payment performance has exceeded 100 trillion KRW for seven consecutive years.

Kim Sung-seop, Vice Minister of SMEs and Startups, said, “This year marks the 10th anniversary of the introduction of win-win payment, and its achievements are significant because they were accomplished together by large and small enterprises, as well as the private and public sectors. We will focus our policy efforts on promoting the use of win-win payment in the public procurement market, which is worth 200 trillion KRW annually, through collaboration with related ministries and local governments.”