Korea Federation of SMEs, Postpones 'On-site Inspection for Direct Production Confirmation' Survey

Headquarters of the Korea Federation of Small and Medium Business

[Asia Economy Reporter Kim Daeseop] The Korea Federation of Small and Medium Business (KSMB) announced on the 10th that it will temporarily suspend the 'On-site Inspection for Direct Production Verification' to prevent damage to small and medium-sized enterprises (SMEs) caused by the spread of the novel coronavirus infection (COVID-19).

This measure reflects concerns from the field that the verification inspections have not been conducted in a timely manner due to the spread of COVID-19 damage and infection risks, raising fears that the 'Direct Production Verification Certificate' may not be issued, thereby restricting SMEs' participation in competitive bidding among SMEs. The inspection will be temporarily suspended until the 22nd of this month.

According to the current 'Act on the Promotion of Purchase of Small and Medium Enterprise Products and Support for Market Development,' when a public institution enters into a product procurement contract through competition among SMEs or by a private contract worth 10 million KRW or more, it is mandatory to verify whether the SME directly produced the product.

The Direct Production Verification Certificate is issued after an inspection officer visits the applicant company, conducts an on-site investigation, and determines eligibility.

Kim Ki-moon, Chairman of the KSMB, said, "To ensure that SMEs are not hindered from participating in competitive bidding among SMEs, we have improved the process in consultation with the Ministry of SMEs and Startups to allow issuance of the Direct Production Verification Certificate based solely on document review, even if temporarily." He added, "We will take necessary measures such as extending the period after comprehensively considering additional COVID-19 damage situations in the future."

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