Ministry of SMEs and Startups expands probe into unfair practices involving delivery payments, will examine a year's worth of transactions

[Financial News]
The Ministry of SMEs and Startups will step up inspections of unfair business practices between companies, including nonpayment of delivery payments and unfair reductions. Starting this year, it will expand the period covered by its investigations from six months to one year, examining second-half transactions that had previously been left out.  According to industry sources on the 18th, the ministry plans to check for unfair business practices at a total of 15,000 companies—3,000 entrusting companies and 12,000 entrusted companies—as part of its “2026 Regular Survey of Entrusted and Entrusting Transactions.”
 This survey covers entrusted and entrusting transactions conducted from January through December last year. A key feature is that it will examine transactions throughout the year, moving beyond the previous approach, which focused mainly on the first half. This will also allow the ministry to check for unfair business practices in industries where a large share of transactions takes place in the second half.
 Key areas of the survey include implementation of the Delivery Price Indexation System, issuance of written agreements, payment of delivery payments and compliance with payment deadlines, unfair reductions in or determination of delivery payments, and improper requests for technical data.
 The Delivery Price Indexation System is a mechanism for reflecting fluctuations in raw material prices and other costs in delivery payments. In this survey, the ministry plans to check whether price indexation agreements have been concluded and implemented, and whether the system is being properly observed in actual business transactions.
 The survey will be conducted in three stages. First, the ministry will check payment records and transaction details for 3,000 entrusting companies. It will then survey 12,000 entrusted companies that do business with them about the issuance of written agreements, implementation of the Delivery Price Indexation System, and whether they have experienced unfair business practices.
 The ministry will then conduct on-site inspections of entrusting companies suspected of violating the law. However, companies that voluntarily take corrective action during the investigation, such as paying entrusted companies the full amount of their losses, may be excluded from on-site inspections. If violations are confirmed, administrative measures under relevant laws, including orders to make improvements, will be taken.
 The ministry also plans to hold briefing sessions to help companies selected for the survey take part. It will explain the survey procedures, how to participate and key details of the Delivery Price Indexation System to improve companies’ understanding of the system.
 Lee Eun-cheong, director general of the Ministry of SMEs and Startups’ Win-Win Cooperation Policy Bureau, said, “Shared growth begins with establishing fair business practices. I hope this survey will provide an opportunity to carefully listen to the voices of businesses on the ground and seek solutions for establishing a fair trading culture and promoting mutually beneficial cooperation.”

[email protected] Kim Hyeon-cheol Reporter