Korea Federation of SMEs Holds Meeting with Jeong Mugyeong, Head of Public Procurement Service

Kim Ki-moon, Chairman of the Korea Federation of SMEs. / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Moon Hyewon] The Korea Federation of SMEs held a meeting with Jeong Mugeong, Administrator of the Public Procurement Service, at the Korea Federation of SMEs in Yeouido on the 18th to discuss the defense procurement industry.

The meeting was arranged at the direct request of Kim Gimun, Chairman of the Korea Federation of SMEs, to Administrator Jeong in order to alleviate concerns within the SME sector regarding the transfer of defense commercial goods (general military supplies) procurement duties from the Defense Acquisition Program Administration to the Public Procurement Service starting next month on the 1st.

Defense commercial goods include about 3,000 items such as military rations, clothing and equipment, aviation fuel, etc., which were previously procured by the Defense Acquisition Program Administration, with contracts worth approximately 1.4 trillion KRW as of last year.

At the meeting, the SME sector requested guarantees for appropriate pricing of food supplies (meat products, sauces, kimchi varieties, canned foods, processed fish products, seasoned seaweed, etc.) and adjustments to the scoring criteria in the 'technical capability' section of the Public Procurement Service's contract performance evaluation standards.

Chairman Kim said, "Given the difficulties faced by SMEs due to the COVID-19 pandemic, if the procurement duties for defense commercial goods are transferred to the Public Procurement Service, the defense procurement industry will face even greater confusion," adding, "I hope the Public Procurement Service will carefully consider the industry's difficulties."

In response, Administrator Jeong stated, "We will thoroughly review the industry's concerns and suggestions to improve the system so that SMEs can focus on their businesses with peace of mind," and added, "Through this, the transfer of procurement duties for defense commercial goods will be able to proceed smoothly."

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