"More Eyes Watching" This Year's Unfair Procurement Reports Hit Record High

The number of reports on unfair procurement practices this year has reached an all-time high.

According to the Public Procurement Service (PPS) on the 21st, a total of 238 cases of unfair procurement practices were reported to the Unfair Procurement Reporting Center this year, a 76% increase from 135 cases last year. This is the highest number ever recorded.

Unfair procurement practices are classified into six types: ▲ submission of forged or altered documents related to bidding and contracts ▲ delivery of products not directly produced (manufactured) ▲ false indication of origin ▲ delivery of products that do not meet contract specifications ▲ violation of preferential pricing conditions ▲ false or fraudulent designation of excellent procurement products.

Earlier, since January, the PPS has undertaken institutional improvements to activate reporting of unfair procurement practices.

Notable measures include establishing criteria for reducing sanctions on voluntary reporters and newly including cases where investigation results led to transaction suspension after media disclosure of the report as eligible for reward payments, thereby strengthening reporting incentives.

Additionally, the consolidation of previously dispersed reporting channels for unfair practice reports, price violation reports, and broker reports into a single window, along with the introduction of an anonymous tip-off function to enhance reporting convenience, is analyzed to have contributed to this year’s record-high number of reports.

The total amount of reward payments for reports also reached 27 million KRW this year, marking the largest scale since the reward system was introduced in 2020. The reward payments have steadily increased: 500,000 KRW in 2021, 13 million KRW in 2022, and 27 million KRW in 2023.

Anyone can report unfair procurement practices through the PPS website or the Government e-Procurement System (G2B) ‘Unfair Procurement Reporting Center’.

The PPS conducts investigations based on the reports received, and if unfair procurement practices are confirmed, it imposes sanctions such as restricting bidding eligibility and recovering unjust profits. Reporters may receive rewards of up to 10 million KRW depending on the type of unfair practice and the severity of the case.

Moon Kyung-rye, Director of the Fair Procurement Bureau at the PPS, stated, “The PPS will thoroughly protect the identity of reporters so that ‘anyone’ who recognizes unfair procurement practices can report with confidence,” and added, “At the same time, we will actively consider measures to revitalize the reporting culture by expanding incentives such as increasing reward payments.”

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