National Balanced Development Project 'Regional Mandatory Joint Contracting System' Approved at Cabinet Meeting… President Moon Emphasizes "Active Participation of Local Companies"

President Moon Jae-in is starting the Cabinet meeting at the Blue House on the 31st. [Image source=Yonhap News]

[Asia Economy Reporter Son Sun-hee] On the 31st, at the Cabinet meeting presided over by President Moon Jae-in, a revision of the enforcement decree was approved to apply the regional mandatory joint bidding system to the 'National Balanced Development Project.' President Moon stated, "In the case of the National Balanced Development Project, opening the way for local companies to actively participate aligns with the purpose of balanced development," and the Blue House announced that he said, "I hope that more local companies can participate in various forms, at least in the National Balanced Development Project."

Yoon Jae-kwan, Deputy Spokesperson of the Blue House, conveyed through a written briefing in the afternoon that day, "The regional mandatory joint bidding system allows only consortia including local companies headquartered in the metropolitan local government where the construction site is located to participate in the bidding."

Last January, the government announced projects exempt from preliminary feasibility studies under the 'National Balanced Development Project' as a strategic national investment for regional balanced development. Since then, industries and local governments have proposed revising the enforcement decree of the National Contract Act to mandate local company participation in these projects. Previously, this was only applied to amounts below the international bidding threshold (7.8 billion KRW).

With this enforcement decree revision, participation of local companies is now mandatory regardless of the amount. It applies to a total of 22 nationwide projects worth 19.6 trillion KRW announced by the Ministry of Economy and Finance.

Deputy Spokesperson Yoon stated, "It is expected to maximize the effect of revitalizing the local economy, which is the main purpose of the preliminary feasibility study-exempt 'National Balanced Development Project,' through subcontracting with local partner companies, utilizing local materials and equipment, and expanding employment of local personnel."

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