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[SITUATION] · [QUIET] · [BUSINESS]

2 clusters · 3 sources · 15 days · First seen · Last updated

SME supply chain payment term debates

Overview

In South Korea, a survey by the Korea Federation of SMEs (KBIZ) indicates that 71% of subcontracted small and medium-sized enterprises (SMEs) believe shortening legal payment deadlines for supply goods would improve business management. While current laws permit a 60-day period, 60.6% of respondents identified 30 days as the most appropriate timeframe.

Subcontracted firms noted that shorter terms would improve cash liquidity and facilitate smoother payments to their own clients. Conversely, 25.7% of entrusting firms reported that shortening deadlines would be difficult, with 74.1% of those citing concerns regarding working capital and short-term liquidity. To address these issues, 58.4% of respondents suggested expanding low-interest loans and guarantees for working capital.

Entities

MiPyMEs · Korea Federation of SMEs

Timeline

  1. 20 days ago

    [BUSINESS] 3 sources
    SMEs urge shortening of legal supply payment deadlines

    A survey of SMEs shows 71% support shortening the 60-day legal payment deadline to 30 days to improve liquidity, though some entrusting firms express concerns regarding working capital.

  2. about 1 month ago

    [BUSINESS] 2 sources
    MSME associations reject government veto on 30-day payment terms

    MSME associations are rejecting a government veto that removes the 30-day payment requirement for small suppliers, warning that delayed payments threaten liquidity and employment.

Sources

biz.heraldcorp.com · dailymagazine.co.kr · inews365.com