Junggi Joonganghoe Invites Lee Jong-wook, Head of Public Procurement Service... Addresses Public Procurement Challenges

Korea Federation of SMEs Holds Meeting with Procurement Service Chief Lee Jong-wook on the 14th
Proposes Improvements to Phase 2 Cutthroat Competition in Multiple Award Schedule (MAS) Contracts

Lee Jong-wook, Administrator of the Public Procurement Service.
[Photo by Yonhap News]

[Asia Economy Reporter Kwak Min-jae] The small and medium-sized enterprises (SMEs) sector has requested the need to adjust prices realistically in public procurement projects, considering the rise in raw material costs and labor expenses.

The Korea Federation of SMEs held a 'Meeting with Procurement Agency Chief Lee Jong-wook and SME Representatives' on the 14th at the Federation's headquarters in Yeouido, Seoul.

The meeting was attended by about 10 SME representatives from various industries, including Kim Ki-moon, chairman of the Federation of SMEs, and Bae Jo-ung, chairman of the Korea Ready-Mixed Concrete Industry Cooperative Federation. From the Public Procurement Service, Procurement Agency Chief Lee Jong-wook, the Director of the Purchasing Business Bureau, and the General Manager of Purchasing participated.

Discussions focused intensively on ensuring appropriate pricing within the public procurement system amid the recent sharp increases in raw material prices and labor costs. Industries participating in the Multiple Award Schedule (MAS), a representative public procurement contract system, proposed that to alleviate cutthroat competition in the two-stage bidding process, the target amount should be doubled from the current level and the minimum proposal rate should be raised. They also requested the Public Procurement Service to establish additional detailed guidelines for price adjustments to facilitate smooth contract amount revisions due to inflation and other factors.

Other proposals included ▲ expanding the use of cooperative public purchase support systems ▲ requesting competitive bidding purchases for military supplies (clothing) ▲ and changing the MAS contract period selection system (1, 2, or 3 years).

Kim Ki-moon, chairman of the Korea Federation of SMEs, stated, “With the private sector’s delivery price linkage system being legislated, it is necessary to improve systems in the public procurement sector so that SMEs can receive fair prices.” He added, “In this complex economic crisis, we hope the government will actively reflect policies to alleviate the difficulties faced by SMEs.”

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