(1) Reasons for Proposal

As the Act on the Promotion of Mutually Beneficial Cooperation between Large Enterprises and Small and Medium Enterprises (promulgated on October 20, 2020; to be enforced on April 21, 2021) was amended to grant KBIZ Korea Federation of SMEs the mediation authority related to the delivered goods payment price mediation system, this Partial Amendment aims to define matters delegated from the Act and others required for the enforcement thereof.

(2) Major Provisions

A. How to file for delivered goods payment price mediation (Article 14-3 paragraphs 3 and 6 (currently 5) amended, and paragraph 5 newly inserted)

1) The amended Act adds KBIZ Korea Federation of SMEs as an entity that can mediate delivered goods payment price with commission companies on behalf of consignment companies, and delegates the mediation method and procedure to be prescribed by Presidential Decree.

2) In this regard, this Partial Amendment defines the required documentation which should be attached when a “cooperative or business cooperative” files for delivered goods payment price mediation with KBIZ Korea Federation of SMEs.

B. Delay interest when paying an unfairly discounted price for delivered goods (Article 14 paragraph 1 amended)

1) The amended Act adds obligations to pay “delay interest for an unfairly discounted price for delivered goods” in matters to comply with, and delegates the interest rate prescribed by Presidential Decree.

2) In this regard, this Partial Amendment defines the same rate of delay interest for an unfairly discounted price for delivered goods as the current rate applied to the interest of outstanding payments.