Ministry of SMEs and Startups Holds Briefings and Consulting to Promote 'Payment Price Linkage System' Expansion

A Total of 93 Nationwide Briefing Sessions Planned
Free Support Project for 1,000 Companies
Issuance of Major Raw Material Verification Certificates and Consulting Support

The Ministry of SMEs and Startups announced on the 31st that it will promote the '2025 On-site Support for the Supply Price Linkage System' to raise awareness of the supply price linkage system.

The supply price linkage system is a measure designed to prevent a vicious cycle where subcontractors bear losses alone when raw material prices rise after entering into a subcontracting contract, leading to instability in the supply chain. It was officially implemented in January last year. According to a survey conducted by the Ministry of SMEs and Startups last year on the status of the supply price linkage system, the most urgent needs for expanding the system were identified as 'raising awareness of the linkage system' and 'reducing the burden of cost disclosure on subcontractors.'

Accordingly, the Ministry plans to increase on-site awareness by providing education and counseling to member companies and other businesses through the nationwide linkage expansion support headquarters. All companies, including public institutions, that wish to receive education and counseling can apply to each linkage support headquarters. In this regard, a total of 93 briefing sessions will be held nationwide.

Meanwhile, this year, the ministry plans to continue free support for 1,000 companies through the 'Support Project for Concluding Linkage Agreements Including Verification of Major Raw Materials.' Specifically, it will provide 'issuance of major raw material verification certificates' through cost analysis and 'one-on-one customized consulting.'

Through the issuance of the major raw material verification certificate, subcontractors can provide cost information to a third-party professional institution rather than the commissioning company to verify whether the materials are major raw materials. The commissioning company can then determine whether the linkage system applies based on the verification certificate prepared by the professional institution.

For small and medium-sized enterprises struggling to draft linkage agreements, one-on-one customized consulting will also be provided by professional institutions on whether specific transactions fall under the linkage system and how to reasonably set and verify price benchmarks for specific raw materials.

Kim Woo-soon, Director of the Win-Win Cooperation Policy at the Ministry of SMEs and Startups, stated, "We plan to distribute a construction industry-tailored supply price linkage system guidebook in the first half of the year and a casebook of linkage agreements by industry and raw material in the second half." He added, "We will continue to support the field to raise awareness of the linkage system and resolve difficulties."