# SME supply chain payment term debates

> Live situation record from CLSTR: https://clstr.news/situations/sme-supply-chain-payment-term-debates
> Updated: 2026-08-23T03:00:00.000Z. Sources: 3. Developments: 2.

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.

## Timeline

### 2026-08-23: 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.

3 sources. https://clstr.news/cluster/smes-urge-shortening-of-legal-supply-payment-deadlines

### 2026-08-08: 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.

2 sources. https://clstr.news/cluster/msme-associations-reject-government-veto-on-30-day-payment-terms

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Cite as: SME supply chain payment term debates. CLSTR, https://clstr.news/situations/sme-supply-chain-payment-term-debates