To ease the burden, the government decided to include energy expenses such as electricity and gas in the scope of the payment-linked system for supply prices. It will also introduce a "win-win finance index" to evaluate the level of mutually beneficial cooperation between financial companies and small and midsize enterprises.
The Ministry of SMEs and Startups (MSS) said on the 13th that a bill to amend the Act on the Promotion of Win-Win Cooperation Between Large Enterprises and SMEs (Win-Win Cooperation Act) passed the National Assembly's plenary session.
The amendment includes: ▲ expansion and improvement of the payment-linked system for supply prices ▲ creation of the win-win finance index ▲ increasing the number of members of the Subcontracting Dispute Mediation Council ▲ establishing grounds for commissioning expert institutions to appraise damages in lawsuits for damages related to the misappropriation of technical data ▲ introducing a statute of limitations for those surveyed in subcontracting transaction investigations.
First, to ease the burden on small and midsize enterprises from energy price fluctuations, the scope of the payment-linked system for supply prices will be expanded to include energy expense such as electricity, gas, and renewable energy. The payment-linked system for supply prices is a scheme that helps small and midsize enterprises request price adjustments when raw material prices rise.
It will also ban the practice of a prime contractor that assigns work pressuring or inducing subcontractors not to apply the system. It will prohibit a prime contractor from disadvantaging a company for requesting the application of the system.
A win-win finance index will be established to promote joint growth between financial companies and small and midsize enterprises. For effective dispute resolution, the number of Commissioners on the Subcontracting Dispute Mediation Council will be increased from the current 20 to up to 30, and architects and professional engineers will be added to the qualifications for Commissioners.
In lawsuits for damages related to the misappropriation of technical data, a basis will be established for courts to entrust expert institutions with the appraisal of damages. To enhance legal stability, the rules were revised so that only cases occurring within three years after a transaction is completed can be investigated. However, in cases of technical misappropriation such as taking technology, the period will be extended to allow investigations for up to seven years.
Kim U-sun, director general for win-win cooperation policy at the Ministry of SMEs and Startups (MSS), said, "With this amendment, it is expected to become possible for small and midsize enterprises with high energy usage to receive fair payment for supply prices," and added, "Through the win-win finance index, we expect financial companies to support the growth of small and midsize enterprises and help foster a financial culture of growing together."
The amended Win-Win Cooperation Act will take effect six months after promulgation, once it is approved by the Cabinet. The additional measure to include energy expenses in the payment-linked system for supply prices will be implemented one year after promulgation.