A bill shortening the deadline for large retailers to pay suppliers for directly purchased goods has cleared a National Assembly standing committee, targeting the practice of delayed settlements. Lawmakers also passed an amendment to the Microfinance Support Act that extends by 10 years the sunset provision allowing contributions from financial companies to fund a supplementary account for low-income lending.
The National Assembly's National Policy Committee held a plenary session at the parliament on the 3rd and approved an amendment to the Large Retail Business Act that cuts the time large retailers have to pay suppliers.
The core of the bill shortens the legal deadline for direct-purchase transactions to 35 days from 60 days, and for online brokerage transactions to 20 days from 40 days. It allows exceptions to the deadline when payment is difficult for reasons beyond the large retailer's responsibility.
Passage of the amendment is expected to ease some of the anxiety among suppliers over recovering payments, a concern that spread after the massive settlement failures at Tmon and WeMakePrice. It is also expected to curb the practice of large retailers managing their cash by paying suppliers only at the legal deadline.
The plenary session also passed the amendment to the Microfinance Support Act extending by 10 years the sunset provision that designates contributions from financial companies as a funding source for the supplementary low-income lending account. Lawmakers additionally approved an amendment to the Act on the Prevention of Conflict of Interest Related to Duties of Public Servants, consolidating the authority to impose and collect fines for violations of whistleblower protection measures in conflict-of-interest cases under the Anti-Corruption and Civil Rights Commission.
