Public Procurement Service restricts 19 companies violating direct production conditions from bidding for up to 16 months

On the 4th, the Public Procurement Service (PPS) announced that it has imposed a bid participation restriction of up to 16 months on 19 companies that signed multiple supply contracts on the condition of domestic production and then fraudulently supplied flooring boards for several years.

According to the PPS, the identified companies are manufacturers of flooring boards who were found to have supplied products imported from China and other countries between 2016 and 2019 disguised as domestically produced products, or supplied finished products from other domestic companies or subcontracted products.

Accordingly, the PPS will restrict all public bid participation for 16 companies that supplied imported finished products for 6 to 16 months, and for 3 companies that received finished products from other domestic companies or failed to perform essential processes for 3 to 4 months.

These companies also had their direct production confirmation canceled by the Ministry of SMEs and Startups (Small and Medium Business Distribution Center) in May under the Sales Channel Support Act due to violations of direct production requirements.

In addition to restricting bid participation qualifications for the 19 companies, the PPS will also pursue recovery of unjust profits. The amount to be recovered will be finalized after an on-site investigation by the dedicated department.

Kwon Hyuk-jae, Director of the Purchasing Business Bureau at the PPS, stated, “The PPS will continue to strictly respond according to relevant laws and regulations to eradicate serious fraudulent supply acts such as importing goods while contracting on the condition of domestic production.”

Meanwhile, flooring boards are materials processed from wooden panels to form floorboards, mainly used as flooring in places such as school auditoriums. Currently, a total of 25 companies (115 items) are registered on the Nara Marketplace comprehensive shopping mall, and the annual public procurement scale of these companies is estimated to be about 60 billion KRW.

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