Public Small-Scale Private Contract Threshold Doubled... Increased Public Purchasing Power

'Public Procurement System Improvement Committee' Meeting Held on the 16th

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The government will double the threshold amount for small-sum negotiated contracts when procuring goods. Additionally, it will enhance institutional flexibility by reducing the third-party unit price contract deposit by 40%.

On the 16th, the government held the 'Public Procurement System Improvement Committee' at the Government Seoul Office, chaired by Andogul, the 2nd Vice Minister of the Ministry of Economy and Finance, and approved these measures.

Accordingly, the threshold amounts for small-sum negotiated contracts will increase as follows: ▲ Goods and services from 50 million KRW to 100 million KRW ▲ General construction from 200 million KRW to 400 million KRW ▲ Specialized construction from 100 million KRW to 200 million KRW.

To alleviate the burden on small and medium-sized enterprises and protect their rights, the third-party unit price contract deposit, which is imposed based on the maximum single delivery amount set by the company, will be reduced by 40%. For goods and services, it will decrease from 150 million KRW to 50 million KRW; for general construction, from 3 billion KRW to 1 billion KRW; and for specialized construction, from 300 million KRW to 100 million KRW.

The scope of the contract dispute mediation system will be expanded to protect the rights of contracting parties.

Andogul, the 2nd Vice Minister of the Ministry of Economy and Finance, stated, "We plan to continuously discover and review system improvement measures through various communication channels so that the public purchasing power of 135 trillion KRW annually can be used more strategically for technological innovation, responding to environmental changes, and realizing social values."

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