Small and Medium Business Sector, Meeting with Public Procurement Service Chief... "Discussing Invisible Regulations and Improvement Measures"

Kim Ki-moon, Chairman of the Korea Federation of SMEs / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] Improvement measures for regulations and rigid systems in the public procurement market, a representative sales channel for small and medium-sized enterprises (SMEs), were discussed.

The Korea Federation of SMEs held a 'Meeting with the Administrator of the Public Procurement Service (PPS) and SME Representatives' on the 12th at the Federation's office in Yeouido, Seoul. Administrator Lee Jong-wook visited the Federation as his first official activity since taking office in May, and this meeting was arranged to listen to the difficulties faced by SMEs on site and discuss improvement measures.

Representatives of SMEs from various industries attended the meeting, including Kim Ki-moon, Chairman of the Korea Federation of SMEs, and Bae Jo-ung, Chairman of the Korea Ready-Mixed Concrete Industry Cooperative Federation. From the PPS, Administrator Lee, the Director of the Purchasing Business Bureau, and the General Manager of the Purchasing Division participated.

At the meeting, in response to the continued rise in raw material prices, proposals were made regarding public procurement contract amounts, including △ rapid adjustment of unit prices in Multiple Award Schedule (MAS) contracts △ changing the reference date for contract amount adjustments △ raising the criteria for MAS second-stage competition amounts and the minimum price proposal rate △ extension of delivery deadlines for items facing supply difficulties such as semiconductors.

Chairman Kim said, "Amid internal and external changes, SMEs are going through difficult times, and concerns about appropriate prices in public procurement are increasing. I hope the invisible regulations and rigid systems embedded in guidelines and practices at procurement sites will be properly resolved."

Administrator Lee stated, "The difficulties and policy suggestions raised by SMEs at this meeting will be actively reflected in procurement operations. We will actively improve various shadow regulations such as irrational practices through continuous on-site communication with related industries."

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