Naju-si Raises 'Private Contract Award Rate' Last Year... Boosting Local Economy Vitality

Naju City in Jeollanam-do revitalized the local economy last year by increasing the bid rate for negotiated contracts.

According to Naju City on the 8th, since raising the bid rate for negotiated contracts by 3% from April last year, a budget of 1.8 billion KRW for construction, goods, and services has been circulated in the market, greatly contributing to the virtuous cycle of the local economy.

A panoramic view of Naju City Hall. [Photo by Naju City]

The bid rates, which were different for construction, services, and goods, were unified and increased by 3% across the board. By the end of last year, a total bid difference amounting to 630 million KRW for construction, 430 million KRW for services, and 720 million KRW for goods, totaling 1.8 billion KRW, was generated.

Along with the increase in bid rates, the proportion of negotiated contracts with local companies also rose compared to the previous year, helping to revitalize the management of local businesses amid the economic downturn.

In particular, for goods procurement, contracts worth approximately 1.3 billion KRW were signed with local companies, an increase of about 4.3% compared to 2022, providing practical support to the management conditions of small business owners.

Mayor Yoon Byung-tae said, “The uniform increase in bid rates and the rise in the proportion of negotiated contracts with local companies have become an opportunity to revitalize the local economy. We will continue to do our best to overcome the economic recession and high inflation crisis by providing practical support to ease the management burdens of small business owners and entrepreneurs, who are a pillar of the local economy.”

Naju = Kim Yuk-bong, Honam Reporting Headquarters, Asia Economy baekok@asiae.co.kr

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