Resolution of the Amendment to the 'Panro Support Act' Extending the Validity Period of Performance Certification for SME Products

Performance Certification Encouraging Public Institution Purchases
Validity Period Changed from '3+3' to '4+4'

The government will extend the validity period of performance certification for small and medium-sized enterprise (SME) products to expand their market access.

The Ministry of SMEs and Startups announced that the partial amendment to the "Act on Promotion of Purchase and Market Support for Small and Medium Enterprise Products" was approved at the Cabinet meeting on the 13th.

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The performance certification system is a system that certifies that SME technology development products and new technology applied products have secured excellent performance, thereby encouraging public institutions to purchase from SMEs. Products with performance certification can enter into negotiated contracts according to the National Contract Act and the Local Contract Act. This leads to stable revenue generation for technology development products.

The validity period of such performance certification was initially 3 years with one additional extension of 3 years, totaling up to 6 years. The government plans to alleviate the burden on SMEs by extending the validity period to an initial 4 years with one additional extension of 4 years, totaling up to 8 years, reducing the renewal burden for SMEs.

The amendment also includes provisions to request statistics from the Public Procurement Service to improve the accuracy of the Ministry of SMEs and Startups' public purchase performance, as well as the basis to delegate some of the Ministry's tasks related to performance certification.

Meanwhile, the amendment to the Market Support Act will be promulgated on the 20th and will take effect six months later.

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