Pilot Purchase of 200 Billion KRW Worth of Excellent Technology Development Products

Support for Performance Certification and Excellent Product Market Access to Enter the Procurement Market for SME Technology Development Products

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) announced on the 3rd that this year it plans to certify the performance of 450 SME technology development products and pilot the purchase of over 200 billion KRW worth of excellent technology development products by public institutions.

The Ministry operates a performance certification and pilot purchase system for technology development products to support SMEs that have commercialized excellent technologies but face difficulties in market access. Performance certification is a system that supports market access by allowing public institutions to trust and purchase SME technology development products recognized by the Ministry for their performance, and applications are accepted year-round.

SME products that have received performance certification can be easily purchased by public institutions through private contracts. Additionally, the Ministry can request public institutions to prioritize purchasing certified products to increase their procurement. Last year, the Ministry certified 366 products, and this year plans to certify more than 450 products.

The pilot purchase system for technology development products was newly introduced in 2018 to support market development for new technology products of startup companies and first-time procurement companies with low procurement delivery records and low recognition. When SMEs possessing technology development products such as performance certification or new product certification apply for pilot purchase to the Ministry, a review committee composed of experts selects products suitable for procurement, and public institutions participating in this system purchase the products.

Last year, the number of participating public institutions was significantly increased, with a total of 355 institutions purchasing 177.5 billion KRW. This is 6.6 times the 26.8 billion KRW performance in 2018. The Ministry plans to expand the number of participating institutions this year to further expand the demand market and encourage more companies to participate, increasing the scale to over 200 billion KRW. Noh Yong-seok, Director of Global Growth Policy, said, "If SMEs make good use of the performance certification and pilot purchase system, it will greatly help in early market development," adding, "Especially this year, for consumer products selected in the pilot purchase, we will support companies' growth by linking them to the private market through public home shopping and policy stores outside the procurement market."

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