South Korea's asphalt concrete, paint and printing industries have signed a cooperation agreement to refrain from raising prices despite rising tensions in the Middle East.
The Democratic Party of Korea's Eulji-ro Committee, tasked with protecting the livelihoods of underdogs in business relationships, held the signing ceremony Tuesday at the National Assembly together with officials from the three industries and related government agencies, aimed at stabilizing raw material supply and prices.
"Today, through this cooperation agreement, we are sharing the burden of price increases and pursuing supply stability," Floor Leader Han Byung-do said at the asphalt concrete industry's social dialogue cooperation signing ceremony. "In times of crisis, what is needed most is responsible burden-sharing and sustainable cooperation," he added, expressing his gratitude.
Under the agreement, the manufacturing industry pledged not to raise printing paper supply prices through the first half of this year to ease the burden on the printing industry.
The paper and plastics industries also agreed to actively cooperate in implementing an "advance notice system for unit price increases," which requires at least 30 days' prior notice in the event of sharp swings in raw material prices.
At the paint industry signing ceremony, the country's four major paint manufacturers — KCC, Noroo Paint, SP Samhwa and Kangnam Jevisco — agreed to withdraw or scale back planned material price increases driven by higher raw material costs on products supplied to specialty construction firms and distributors handling painting and waterproofing work, and to minimize price hikes during the Middle East conflict.
Through the asphalt concrete industry cooperation agreement, the oil refining industry agreed to actively cut asphalt prices for April — which had surged on higher crude prices — as part of burden-sharing, and to implement further reductions from May onward reflecting downward factors, while minimizing any increases when upward pressures emerge.
