Public Procurement Service's Major Project Budget for Next Year 133.8 Billion Won 'Record High'

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The Public Procurement Service (PPS) has secured a budget of 133.8 billion KRW for major projects next year. This represents an increase of 73.2 billion KRW (82.8%↑) compared to the previous year, marking the largest budget ever recorded.

Through this, the PPS expects to support the government's innovative growth by promoting key core projects such as innovative procurement and the complete reconstruction of the next-generation Nara Market.

According to the PPS on the 3rd, the major projects reflected in next year's budget include ▲ public purchase of innovative products ▲ construction of the next-generation Nara Market ▲ establishment of a dedicated shopping mall.

First, a budget of 44.5 billion KRW has been allocated for the public purchase of innovative products next year. This is an increase of 34.6 billion KRW compared to 9.9 billion KRW this year.

The allocated budget is expected to serve as a driving force to diversify the designated targets of innovative products and expand opportunities for public institutions to participate in testing from one product per one institution to one product per multiple institutions.

For the ongoing construction of the next-generation Nara Market, a budget of 23 billion KRW will be allocated next year, with a total of 132 billion KRW expected to be invested by 2023. The next-generation Nara Market project involves a complete reconstruction of the Nara Market system, which has been in operation since its launch in 2002, to suit current circumstances.

The newly constructed Nara Market will apply digital new technologies such as artificial intelligence, big data, blockchain, and cloud computing. Through this, the PPS plans to implement its core digital procurement policies aligned with the ‘Korean-style Digital New Deal Policy.’

Additionally, the PPS plans to gradually integrate electronic procurement systems that some public institutions have independently built and operated into the next-generation Nara Market.

Next year, 2.7 billion KRW will also be invested in establishing a dedicated shopping mall. The establishment of the dedicated shopping mall is being promoted to implement a specialized contract system for digital services in the post-COVID-19 era. The PPS plans to support both the activation of digital service contracts and the growth of the domestic digital service industry through the establishment of the dedicated mall.

Furthermore, the PPS has allocated 1 billion KRW for projects supporting overseas procurement market entry for K-quarantine companies and 2.4 billion KRW for mask stockpile management costs.

Kim Jeong-woo, Administrator of the PPS, said, “In these days when the role of public procurement and the importance of public purchasing power are highlighted as important policy tools to support domestic companies and industries amid economic crises such as COVID-19,” adding, “We will strive to ensure that next year’s largest-ever budget is timely invested in major projects such as revitalizing innovative procurement, constructing the next-generation Nara Market, supporting K-quarantine overseas exports, and fostering the digital service industry.”

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