Government to Utilize 1% of Procurement Budget for Innovative Products... Introduction of Target System

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The government has decided to allocate 1% (410 billion KRW) of each institution's procurement budget to purchasing innovative products. Additionally, it will introduce an innovation purchase target system that reflects actual purchase performance in institutional evaluations.

On the 12th, the Ministry of Economy and Finance held the "3rd Meeting of the Government-wide Innovation Procurement Promotion Task Force" at the Government Seoul Office and announced these plans. The meeting discussed ▲ 20 years of innovation-oriented public procurement promotion ▲ launch and advancement of the innovation procurement platform ▲ cases of innovation-oriented public procurement policies.

To establish an innovation procurement policy ecosystem, dedicated innovation procurement organizations will be designated within ministries, local governments, and public institutions. Furthermore, the current government-wide task force will strengthen its function to promote innovation purchases by identifying demand.

Demand will be prioritized through a core demand discovery task force (TF) and on-site dedicated organizations. After legal amendments, this will be expanded and reorganized into a demand discovery committee.

Enhancements to the innovation procurement platform will also be pursued, including AI-based support for matching public demand with innovative products and the addition of a system for discovering and managing challenging demands.

The Public Procurement Service has designated over 300 innovative prototypes as the pilot purchase budget for innovative prototypes increased from the initial 2.4 billion KRW to 9.9 billion KRW.

Deputy Minister Koo Yoon-cheol of the Ministry of Economy and Finance urged, "Please expedite the designation procedures for innovative products in each ministry so that the ultimate goal of innovation procurement?improving public services?can be achieved," and added, "Please actively strive to discover public demand for improving public services."

This content was produced with the assistance of AI translation services.