Kim Jung-woo, Head of Public Procurement Service, Visits Korea Federation of SMEs as First Step After Inauguration

Kim Ki-moon, Chairman of the Korea Federation of SMEs (left), Kim Jung-woo, newly appointed Administrator of the Public Procurement Service

[Asia Economy Reporter Kim Cheol-hyun] The Korea Federation of Small and Medium Business (Chairman Kim Ki-moon) announced on the 2nd that Kim Jung-woo, the newly appointed Administrator of the Public Procurement Service, met with Chairman Kim Ki-moon as his first official act after taking office to discuss expanding support measures for small and medium enterprises (SMEs) struggling with a private sector order cliff caused by the novel coronavirus infection (COVID-19).

According to the Korea Federation of Small and Medium Business, increasing the purchase ratio of SME products by public institutions, which currently stands at about 78% of the entire public procurement market, to 88% would result in an additional support effect of approximately 13 trillion won for SME sales channels. The government also expanded the limit for negotiated contracts recommended by cooperatives from 50 million won to 100 million won as a domestic demand support measure at the 4th Emergency Economic Measures Meeting on April 8. The Federation has also been closely cooperating with the Public Procurement Service through a business agreement last year to ▲revitalize cooperatives and strengthen support for small businesses and small merchants ▲support public procurement channels for startups and venture companies ▲assist export companies in entering overseas procurement markets ▲regularize policy meetings ▲and enhance the quality of procured goods.

Kim Jung-woo, the Administrator of the Public Procurement Service, previously served as the chairman of the Tax Subcommittee of the Planning and Finance Committee in the 20th National Assembly and led the passage of amendments to the Inheritance and Gift Tax Act and the Restriction of Special Taxation Act to facilitate smooth business succession for SMEs. Chairman Kim Ki-moon of the Federation stated, "We will work closely with the newly appointed Administrator Kim Jung-woo on various SME issues, including the activation of competition systems among small and medium enterprises."

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