Excellent Companies in Delivery Payment Linkage System... Incentives Such as Penalty Reduction Granted

Award Ceremony and Best Practice Presentation for Yeondong Outstanding Companies on the 9th
A total of 16 Companies Selected as Outstanding Firms

The Ministry of SMEs and Startups and the Fair Trade Commission announced that they held the ‘2024 Excellence in Linked Payment Awards and Best Practices Presentation’ on the 9th at the Jeongdong 1928 Art Center in Seoul to promote the culture of linked payment for delivery prices.

FAQ on the Payment Linkage System for Delivered Goods. Payment Linkage System Website

Now in its second year, the Linked Payment Excellence Awards ceremony was jointly conducted by the Ministry of SMEs and Startups and the Fair Trade Commission, who have been working together as one team to promote the linked payment system for delivery prices. Both ministries emphasized the importance of win-win cooperation between large and small-to-medium enterprises by awarding companies that have exemplary practices in implementing the linked payment system and sharing best practice cases that can serve as models.

A total of 16 companies were selected as Linked Payment Excellence Companies. Eight companies including the Korea Agency for Infrastructure Technology Advancement, Doosan Bobcat Korea, Volvo Group Korea, HL Mando, LSMtron, Korea Southern Power, Korea Minting and Security Printing Corporation, and Hyundai Transys received commendations from the Minister of SMEs and Startups. Another eight companies including Lotte Wellfood, HD Hyundai Construction Equipment, HD Hyundai Samho, LIG Nex1, LG Household & Health Care, LG Innotek, LG Electronics, and Poongsan were awarded commendations from the Chairman of the Fair Trade Commission.

Korea Minting and Security Printing Corporation and LG Innotek were selected as representative companies that operate the linked payment system exemplary and shared their best practices. Korea Minting and Security Printing Corporation, as a public institution, has a contract amount adjustment system under the National Contract Act, but separately established a process of ‘system promotion - persuasion - consultation - contract - systemization’ for the linked payment system. They presented a case where they paid an additional approximately 30 million KRW for pulp costs, a raw material, through a linked agreement. LG Innotek has voluntarily applied the linked payment system even before its legalization. They also shared their experience of continuously providing education on the linked payment system to partner companies to establish a culture of linked contracts.

The Linked Payment Excellence Companies will receive various incentives such as penalty point reductions, exemption from ex officio investigations, and additional points in the evaluation of compliance with fair trade agreements.

Kim Seong-seop, Vice Minister of the Ministry of SMEs and Startups, stated, “We plan to respond strictly to illegal acts evading the linked payment system as well as violations of the system,” and added, “We hope that excellent companies will play a pioneering role in spreading the linked payment system.”

Cho Hong-seon, Vice Chairman of the Fair Trade Commission, emphasized, “We will make multifaceted efforts to ensure the linked payment system is properly established in the market and will monitor to prevent any illegal acts that undermine the purpose of introducing the system.”

Meanwhile, to promote the spread of best practices in the linked payment system, a supplementary Q&A document (FAQ) was also distributed to resolve practical difficulties in the application process of the linked payment system. Since its initial publication in early January this year when the system was fully implemented, additional frequently asked questions and answers from businesses over the past year have been added. Related materials can be found on the linked payment system website.

This content was produced with the assistance of AI translation services.