Establishing a Foothold for Entry into the 'Public Procurement Market' with Video Content Production and Steam Car Wash Services

20 Cooperatives Establish Group Standards Through Expert Consulting Support

[Asia Economy Reporter Kim Jong-hwa] 'Group standards' have been established for 'video content production services' and 'steam car wash services.' Accordingly, companies (mainly cooperatives) that have faced difficulties in business execution due to cost burdens and lack of internal capabilities, despite demands from related industries and consumers, now have means to enter the public procurement market.

'Group standards' are standards established by organizations related to industrial standardization, including small and medium enterprise cooperatives, as prescribed by the Ministry of Trade, Industry and Energy. These standards cover symbols, terms, performance, procedures, methods, and technologies applied to specific specialized fields to ensure public safety, protect consumers, and facilitate members' convenience.

The Korea Federation of SMEs announced on the 10th that 20 cooperatives established group standards through the '2020 Cooperative Group Standards Establishment Consulting Support Project,' aimed at building a foundation for cooperative joint projects and activating functions.

The Cooperative Group Standards Establishment Consulting Support Project assists cooperatives that need to establish group standards due to demands from related industries and consumers but face difficulties in business execution because of cost burdens and lack of internal capabilities. The project supports these cooperatives in establishing new group standards through expert consulting.

Cooperatives wishing to establish group standards first select consulting experts suitable for their business field, and both the cooperative and the consulting provider participate as a consortium. An external expert selection evaluation committee evaluates the necessity of establishing group standards, concreteness of the promotion plan, consulting execution system and cooperation plan, and expected effects on cooperative activation to select support targets.

Selected cooperatives can receive support of up to 20 million KRW per cooperative, including a self-payment of 30% of the total project cost, to establish new group standards.

Among 26 cooperatives that applied this year, 20 were selected. From June to October, over five months, standardization work was conducted through consulting by standard experts, followed by mid-term and final evaluations, resulting in the establishment of 20 new group standards.

The group standards established this year include many product standards such as △biodegradable mulching film for agriculture △metal interior wall finishing panels △ion exchange resin type water softeners △LED fixtures for sports stadiums △sludge pumps △polyethylene cage aquaculture structures.

With growing interest due to the Fourth Industrial Revolution and the advent of the service economy, new and diverse service group standards were also established compared to last year, including △video content production services △gas supplier safety management services △steam car wash services △herbal medicine-containing health food provision and customer management services.

The group standards established by each cooperative undergo a stakeholder opinion collection process through a 30-day or longer advance notice on the 'e-Nara Standard Certification Group Standards Comprehensive Information Center,' followed by review by the Group Standards Deliberation Committee, after which final registration is completed. Registered group standards are used as means to improve quality levels in the relevant industries centered on cooperatives and to enter the public procurement market, including reflecting conditions for participation in Public Procurement Service Multiple Award Schedule (MAS) bids.

Jung Wook-jo, Head of the Innovation Growth Headquarters at the Korea Federation of SMEs, said, "If small and medium enterprises can develop various group standards through industry-specific cooperatives and build a foundation for joint projects, the competitiveness of the industry will increase." He added, "This will also contribute to expanding sales channels and changing consumers' negative perceptions of SME products and services."

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