Bid and Contract Deposit Reduced by 50%, Payment Period Shortened

Temporary Extension of Local Contract Special Measures for Regional Small and Medium Enterprises

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] The Ministry of the Interior and Safety announced on the 27th that it will extend the temporary special application period of the Local Contract Act Enforcement Decree until June 30 next year to alleviate the management burden on small business owners and self-employed individuals.

The main contents of the special measures are ▲reducing bid bonds and contract bonds to half the usual amount ▲shortening the time required for inspection, acceptance, and payment ▲simplifying the private contract procedures to enable prompt execution.

Meanwhile, the increase in the amount subject to small private contracts was systemically revised during the amendment of the Local Contract Act Enforcement Decree last September, contributing to the management of small local businesses and the revitalization of the local economy.

Choi Byung-kwan, Director of the Local Finance and Economy Office at the Ministry of the Interior and Safety, said, “Amid severe domestic and international economic conditions, especially with the increasing difficulties faced by local small businesses, we hope that the extension of the special measures for the local contract system will help ease the burden on small businesses and small business owners and aid in the recovery of the local economy.”

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