The Ministry of SMEs and Startups released on the 13th the results of a review of how well the government, the plastic industry, and large and mid-sized demand corporations have carried out a mutual growth agreement they signed.
The Ministry of SMEs and Startups (MSS) signed a mutual growth agreement in Apr. hosted by the Democratic Party of Korea's Euljiro Committee between the plastic processing industry and large and mid-sized demand corporations. CJ CheilJedang(097950), Nongshim(004370), and Starbucks Korea took part in the agreement.
The review ran from on the 25th to on the 3rd and covered nine demand companies. It checked implementation from Apr. 9 to Jun. 30 after the agreement was signed.
The review found that demand companies raised delivery payments by about 20 billion won in total for 394 partner firms to support small partner companies struggling with rising materials and supplies prices.
Efforts also continued to improve transaction practices. Some corporations paid delivery fees earlier than scheduled, signed new delivery price indexation agreements, or shortened price negotiation cycles to quickly reflect changes in materials and supplies prices in delivery payments.
Support was also provided to ease financial burdens on partner firms. Demand companies made early payments within 10 days for delivery fees totaling 14.97 billion won and worked to reduce delivery burdens through 54 cases of deadline extensions and penalty waivers.
They also identified cases of mutual growth cooperation such as low-interest financial support using mutual growth funds and joint sourcing of materials and supplies with quality test support.
The Ministry of SMEs and Startups (MSS) plans to regularly review the implementation of the mutual growth agreement, identify and spread best practices to establish a voluntary culture of mutual growth cooperation, and build a transaction environment where delivery payments receive fair prices.
Lee Eun-cheong, director general for mutual growth cooperation policy at the Ministry of SMEs and Startups (MSS), said, "This review confirmed that large and mid-sized demand companies are faithfully implementing the mutual growth agreement," and added, "We will continue to review implementation results and spread best practices to help establish a culture of mutual growth cooperation."