The Ministry of SMEs and Startups visited small and medium-sized plastic flexible packaging manufacturers on the 20th to review industry difficulties and discuss response measures as management burdens have grown due to oil supply chain instability stemming from the Middle East war and rising materials and supplies prices.
The plastic bag manufacturing industry is highly dependent on naphtha-based raw inputs and is sensitive to international oil price fluctuations. With instability in the Middle East recently increasing pressure on materials and supplies prices, the burden on small and medium manufacturers is also expanding.
Attendees at the on-site visit included Vice Minister Lee Byeong-gweon of the Ministry of SMEs and Startups (MSS), along with officials from the Korea Packaging Association and the Korea Commission for Corporate Partnership. After touring the production site, participants reviewed the plastic bag sector's materials and supplies supply situation and conditions for negotiating supply prices.
Since 2019, the plastic bag industry has operated under a shared-growth agreement between large corporations and small and medium-sized enterprises. According to the Ministry of SMEs and Startups (MSS), the shared-growth council has exchanged market conditions and discussed ways to improve delivery structures and support management stability.
At the roundtable, the Vice Minister said, "In the recent surge in materials and supplies prices, it is necessary to reasonably share the burden through an industry-level cooperation structure," and added, "We will provide policy support so that the shared-growth agreement, operated with the Korea Commission for Corporate Partnership at its center, can lead to tangible results on the ground."
He also noted, "We will actively pursue easing burdens on small and medium-sized enterprises through financial support such as emergency management stabilization funds and through negotiations on supply prices," and said, "We will continuously supplement necessary policies by reflecting on-site opinions."