Supply Payments Increased by 20 Billion Won After Plastics Industry Win-Win Agreement

Nine Client Companies Raise Supply Payments by 20 Billion Won for 394 Partners
Three Firms Make Early Payments of Approximately 15 Billion Won

After the plastics industry and large and medium-sized client companies signed a win-win cooperation agreement to respond to rising raw material prices and other challenges, it was found that they have carried out the agreement, including increasing supply payments by 20 billion won.

On April 9th, participants took a commemorative photo at the 'Win-Win Agreement Signing Ceremony between Plastic SMEs and Large and Medium-sized Enterprises' held at the National Assembly Main Building in Yeongdeungpo-gu, Seoul. Ministry of SMEs and Startups

The Ministry of SMEs and Startups announced on July 13th that, after reviewing the implementation of the agreement at nine client companies between June 25th and July 3rd, supply payments were increased by approximately 20 billion won, and 14.97 billion won was paid early as a result.

In April, the National Assembly, the government, the plastics industry, and nine client companies (CJ CheilJedang, Daesang, Nongshim, Lotte Chilsung Beverage, LG Household & Health Care, Sangmidang Holdings, Starbucks Korea, GS Retail, and the Agricultural Materials Division of NongHyup Agribusiness Group) signed the win-win cooperation agreement. According to the review, the nine companies raised supply payments for 394 partner firms. Among them, three companies improved their transaction practices by making early payments within ten days.

Client companies either newly signed supply payment indexation agreements or shortened their negotiation cycles, so that changes in raw material prices could be quickly reflected in supply payments. Three companies extended delivery deadlines for 54 cases by an average of 7.9 days, and lessened the burden on partner firms through measures such as penalty exemptions.

In addition, there were various examples of win-win cooperation, such as providing low-interest financial support through win-win funds and supporting joint sourcing and quality testing of raw materials.

The Ministry of SMEs and Startups plans to regularly review the implementation of win-win cooperation agreements, discover outstanding cases, and foster a culture of voluntary win-win cooperation and a fair environment for supply payments.

Lee Euncheong, Director General for Win-Win Cooperation Policy at the Ministry of SMEs and Startups, said, "Through this review, we were able to confirm that large and medium-sized client companies are faithfully implementing the win-win cooperation agreement. We will continue to regularly check implementation and spread best practices so that a culture of voluntary win-win cooperation can take root."

This content was produced with the assistance of AI translation services.