Administrative Fines of Up to 10 Million Won for Companies Violating Plastic Container Delivery Price Indexation System

[Financial News] The government conducted an ex officio investigation into the Delivery Price Indexation System for plastic container transactions and found legal violations by two food manufacturers and two coffee franchises.
 According to the Ministry of SMEs and Startups (MSS) on the 9th, the investigation was launched to determine whether the Delivery Price Indexation System was functioning properly in the field, as the Middle East war increased the cost burden on small and medium-sized plastic container manufacturers.
 The Delivery Price Indexation System adjusts delivery prices in line with changes in raw-material prices under the Act on the Promotion of Win-Win Cooperation Between Large Enterprises and Small and Medium Enterprises.
 The MSS previously conducted a written investigation of 15 entrusted companies in three industries with high demand for plastic container deliveries: food manufacturing, beverage manufacturing, and coffee franchises. It then carried out an in-depth review of seven companies through on-site investigations and surveys of entrusted companies, focusing on firms suspected of legal violations, those that submitted documents inadequately, and those with numerous entrusted companies.
 The investigation confirmed violations of the Act on the Promotion of Win-Win Cooperation Between Large Enterprises and Small and Medium Enterprises at four companies: two food manufacturers and two coffee franchises.
 The violations comprised five cases of delayed issuance of agreements, six cases of delayed issuance of indexation agreements, and 12 cases of failure to issue indexation agreements, for a total of 23 cases.
 The MSS imposed measures including administrative fines of up to 10 million won, corrective orders, two penalty points, and mandatory education on the companies.
 Lee Eun-cheong, director general of the Win-Win Cooperation Policy Bureau at the MSS, said, "We will inspect compliance with the Delivery Price Indexation System so that a trading culture in which large and small businesses share the burden of raw-material costs can take root."
[email protected] Kim Hyeon-cheol Reporter