The Ministry of SMEs and Startups will select and honor companies that have exemplarily implemented the supply-price linkage system. Selected firms will receive benefits including exemption from ex officio investigations into subcontracting transactions and reductions in administrative fines.
The ministry announced Sunday that it will accept nominations for "2026 Outstanding Supply-Price Linkage Companies" from Monday through Oct. 8.
The award program was established to identify companies that have proactively concluded and fulfilled supply-price linkage agreements, sharing the burden of rising raw material and energy costs between ordering and subcontracting firms.
Eligible applicants are companies that have signed supply-price linkage agreements under subcontracting transactions governed by the Mutually Beneficial Cooperation Act. Evaluation criteria include the ratio of linkage contracts concluded, the number of subcontractors covered by such agreements, and the track record of actual supply-price adjustments. Contributions to the system's real-world adoption — such as promotional efforts to spread the linkage regime — will also be assessed.
A key evaluation factor this year is whether linkage agreements actually led to supply-price adjustments in practice. Companies that proactively raised supply prices for subcontractors or made early payments amid the surge in raw material prices driven by the war in the Middle East will receive preferential treatment in the review.
The additional points awarded to companies that proactively raised supply prices or made early payments during periods of rising raw material costs reflect a deliberate emphasis on substantive cooperation on the ground, rather than mere formal adoption of the linkage system.
The award consists of 10 minister's commendations. Firms selected as outstanding companies will be exempt for a set period from regular fact-finding surveys and ex officio investigations into subcontracting transactions. They will also receive 2 bonus points in this year's fair-trade agreement compliance evaluation for the subcontracting sector, and may have up to 2 penalty points and up to 50 percent of administrative fines under the Mutually Beneficial Cooperation Act reduced.
Companies wishing to apply must submit an application form and a merit statement to the Korea Foundation for Cooperation of Large and Small Business, Agriculture and Fisheries by email no later than Oct. 8. The ministry will finalize award candidates after a document review and deliberation by a merit review committee. Commendations are scheduled to be presented at the "2026 Mutual Growth Week Ceremony" in November.
boo@heraldcorp.com
