Where supply costs fluctuate beyond the standards prescribed by Presidential Decree in accordance with Article 22-2 of the Current Act, small and medium enterprise (SME) cooperatives under Article 3 (1) 1 or 2 of the Small and Medium Enterprise Cooperatives Act may receive an application from a commissioned enterprise that is a member and negotiate with the commissioning company to coordinate the price of delivered goods, but it is pointed out that SME cooperatives are also very small or have insufficient bargaining power, so the system is needs improvement because of the low utilization rate.

Therefore, this amendment aims to enhance the effectiveness of the system by allowing the Korea Federation of Small and Medium Business to apply for the coordination of the price of delivered goods instead of an SME cooperative upon the request of the SME cooperative.

Meanwhile, the SME cooperative who received an application for the coordination of the price of delivered goods from a commissioned enterprise which is its member should apply for the coordination of the price of delivered goods to the commissioning enterprise to the Korea Federation of Small and Medium Business through the resolution of its general meeting or board of directors within 20 days, and the Korea Federation of Small and Medium Business, after receiving the application, needs to collect and analyze objective data for effective coordination negotiations.

Accordingly, where an SME cooperative receives the application from a member and applies for the coordination of the price of delivered goods to the Korea Federation of Small and Medium Business, this amendment aims to grant the Korea Federation of Small and Medium Business an additional 15 days review period.

Details

A. Add the Korea Federation of Small and Medium Business to those who are eligible to apply for the coordination of the price of delivered goods to a commissioning enterprise  (Article 22-2 (2)) 

B. Require that the SME cooperative that has received an application for coordination applies for the coordination of the price of delivered goods to the commissioning enterprise or the Korea Federation of Small and Medium Business within 20 days and that the Korea Federation of Small and Medium Business applies for the coordination to the commissioning enterprise within 15 days of receiving the coordination application (Article 22-2 (3)). 

Coordination of the price of delivered goods in line with variations in supply costs