Although they are subject to the delivery price linkage system, it was found that one of the two consignment companies that did not utilize it had a lack of understanding of the system.
The delivery price linkage system is intended to lower the burden on partner companies by allowing adjustments to delivery prices when key raw material prices fluctuate.
The Ministry of SMEs and Startups announced on the 16th that such results emerged from the '2024 Delivery Price Linkage System Fact-finding Survey' targeting 12,000 consignment companies.
Among the 4,013 corporations that responded to the survey, 63.3% said they were aware of the linkage system. Companies that were not aware numbered 1,472 (36.7%).
A total of 411 corporations had transactions subject to the linkage agreement. Among them, 74.7% (307 corporations) had entered into linkage or non-linkage agreements, which the Ministry noted indicated a high compliance rate despite the survey targeting transactions conducted in the initial phase of the system.
Among the remaining 104 corporations that had transactions subject to the linkage system but did not enter into a linkage agreement, the reason cited most frequently for this was 'lack of understanding of the system' at 53.4%. Other reasons included 'no need (11.5%),' 'price negotiation content already reflected (7.7%),' and 'possible mutual consultation if necessary (5.8%).
On December 31, the Ministry of SMEs and Startups established and implemented guidelines on 'Delivery Price Linkage' containing criteria and examples for determining applicable transactions under the linkage system, the obligation to issue linkage agreements, and to prevent unlawful activities.
The Ministry plans to enhance awareness of the linkage system in the field and alleviate the cost disclosure burden for consignment companies to establish the system on-site. Ongoing explanation sessions for field corporations will also be conducted. Starting next month, the Ministry plans to provide cost analysis and linkage agreement consulting for 1,000 small and medium-sized enterprises.
Consignment companies provide cost information to a third-party professional institution, rather than the commissioning company, while the commissioning company can objectively confirm the availability of key raw materials through main materials confirmation documentation rather than the cost information of the consignment company.
Kim Woo-soon, director of the cooperative development policy at the Ministry of SMEs and Startups, said, 'To spread the system, I will focus on enhancing field awareness and addressing difficulties.'