The government has begun on-site inspections to check whether the unit price linkage system for supply payments is actually working amid a surge in raw material prices.
Lee Byeong-gweon, Vice Minister at the Ministry of SMEs and Startups, visited Daedong in Dalseong County, Daegu, on the 30th to review how the burden on partner small and midsize enterprises has been eased.
Daedong, a mid-sized agricultural machinery manufacturer founded in 1947, was selected as an exemplary company for the unit price linkage of supply payments after signing 135 linkage agreements with 19 partner companies as of last year.
Daedong raised supply unit prices by a total of 25 million won for three partner companies that use aluminum as a key materials and supplies after the Middle East war. It also increased supply unit prices by about 600 million won for 10 partner companies not subject to the linkage system, reflecting higher oil prices.
At the roundtable held that day, representatives of partner companies voiced concerns over the burden from rising energy expenses, including electricity costs as well as raw materials, and requested the establishment of guidelines for the system.
The Vice Minister said, "We are taking seriously the impact of rising oil and energy prices on the root industries," adding, "We will strengthen the preparation of guidelines and consulting support so the energy expense linkage system can take root in the field."
The Ministry of SMEs and Startups (MSS) plans to provide incentives—such as awards, exemption from fact-finding surveys, and favorable treatment in the Shared Growth Index evaluation—to corporations that voluntarily adopt the energy expense linkage system ahead of its implementation in Dec.