DL E&C

Acts that interfere with fair trade order, such as oral orders, non-delivery in writing, unreasonable cancellation of orders, prohibition of transactions with other companies, unreasonable reduction of construction costs, reimbursement of goods, disclosure of cost data, and leakage of professional manpower, are strictly prohibited in strict compliance with the Fair Trade Commission's four guidelines.

To spread the fair trade culture, the Fair Trade Commission applies 100 percent of the most recent construction industry and construction material industry standard subcontracts amended by the Fair Trade Commission, as well as the prohibition of unfair special contracts and double contracts, the prohibition of retaliation, and the duty of confidentiality.

We updated the method to receive a contract performance guarantee after signing a subcontract, ensuring a sufficient period for the issuing of the guarantee to partner companies and offering an opportunity to faithfully execute the duty to issue a written document. We create a system that exempts or reduces contract performance guarantees to 5% for suppliers that meet specified criteria, and we provide additional guarantee fees for small and medium-sized enterprises (SMEs) in order to secure more guarantee capacity and ease financial difficulties, supporting to strengthen the competitiveness of our partner companies.

We increase financial support by raising KRW 100 billion for win-win collaboration with business partners.

• Providing 'KRW 50 billion’, which gives free loans to partner companies suffering from a lack of operational capital.
• Supporting partner companies to receive preferential loan interest rates (1.3%) by creating a KRW 50 billion mutual growth fund with financial institutions

We help our partners resolve financial challenges and improve their liquidity by improving payment circumstances.

• Making subcontract payments for subcontractors on the 10th of each month, which is the industry-leading standard
• Maintaining 100 percent cash equivalent payment based on the cash payment principle to increase fund liquidity

To ensure that the amount paid to tier 1 suppliers is appropriately paid to secondary and tertiary suppliers, a private win-win payment system, 'Nomubi.com,' has been established at all sites since 2014, for the first time in Korea. To encourage primary suppliers to use the win-win payment system, we are offering full support for the win-win payment system transfer fee for the first time among construction businesses.

The low-cost review system is adopted to avoid losses due to excessive rivalry among business partners, as well as to avoid difficulties such as bankruptcy and insolvency of business partners, and to select organizations based on quality and performance rather than price. Furthermore, by increasing the budget from less than 82 percent to 86 percent, or less of the present budget, it is envisaged to assist to the solidification of partner companies.

We perform financial consulting for financial situation diagnostic and future improvement to assist out partner companies in securing financial stability and preventing problems by recognizing risk factors in advance.

As a program that helps partner organizations improve their competitiveness for long-term management by focusing on ESG issues such as safety, the environment, and ethical behavior, we anticipate that by assisting with ESG education, diagnosis, and consultation to improve the ESG business environment, our partner organizations will be able to establish a methodical foothold for ESG management.

To improve the settlement agreement, which is often delayed during subcontract settlement, we implemented the settlement appraisal procedure, in which an appraisal is sought by an external professional agency with public trust so that settlement can be settled quickly. We promote the strengthening of our partner company’s financial soundness by doing so, and we also cover the whole amount of external appraisal fees borne by existing suppliers for small and medium-sized firms.

Every year, we educate employees of partner companies on management innovation, cost savings, labor, quality, safety, and the environment to assist them increase their competitiveness through competency development.

We have been donating the Win-Win Cooperation Fund to small and large companies, as well as the Agricultural Cooperation Foundation, to support research, human resource development, and productivity of small and medium-sized partners since 2013, and we are currently implementing support projects for various partner companies. Since 2018, the contribution amount has been doubled in order to promote practical win-win collaboration, and we are extending business activities such as education, technology development, and management support that can directly aid small and medium-sized partners.

We conduct technological development assistance activities to support our partners in enhancing their competitiveness through the creation of new technologies and products, as well as the improvement of quality. (Joint R&D, financial support for R&D, licensing grants, and so on.) A private contract is signed if the company succeeds in developing new technologies in collaboration with partner companies with technological prowess by implementing purchase-linked technology development. Partner companies gain a platform for future expansion, and DL E&C creates a virtuous circle of win-win cooperation that ensures technical competitiveness.