Public Procurement Service Lays Ladder for Procurement Companies to Enter Overseas Markets as a 'Lever for Public Sales'

The Public Procurement Service (PPS) is focusing its efforts on leveraging public procurement channels as a stepping stone to help domestic innovative procurement companies expand overseas.

On the 26th, PPS announced the "Support Plan for the Growth of Innovative Procurement Companies through Whole-of-Government Collaboration" at the Emergency Economic Ministers' Meeting.

The core of the support plan is to enhance synergy by consolidating the small and venture innovation ecosystem creation and export support programs that have been carried out separately by each ministry, and to establish a successful collaboration model among 12 related ministries including the Ministry of Economy and Finance, Ministry of Foreign Affairs, Ministry of Trade, Industry and Energy, Ministry of Employment and Labor, Ministry of SMEs and Startups, and Financial Services Commission.

To this end, PPS plans to promote a package support system where multiple ministries collaborate on private marketing, finance and investment, professional manpower, and research and development (R&D).

First, PPS will expand unit price contracts for innovative products and introduce contract methods such as direct contracts for leasing and subscription. It will also unify the platforms for innovative product applications and designation, as well as pilot purchase projects, which have been divided by ministries, under PPS to improve efficiency in the public procurement system.

Additionally, through inter-ministerial collaboration, PPS will support private sales channels such as the Ministry of SMEs and Startups’ exclusive sales channels for small businesses and the Korea Broadcast Advertising Corporation’s (KOBACO) discounted broadcast advertising fees. PPS also plans to cooperate with financial institutions such as the Korea Credit Guarantee Fund, Korea Development Bank, and D.CAMP to provide policy financing benefits like preferential loan interest rates and guarantee fees.

PPS will actively utilize cross-ministerial export support programs such as overseas demonstration projects, Official Development Assistance (ODA), and export vouchers to support procurement companies in pioneering overseas procurement markets.

In collaboration with ministries such as the Ministry of Foreign Affairs, Ministry of SMEs and Startups, and Ministry of Trade, Industry and Energy, PPS will support the acquisition of overseas certifications and promote participation in innovative product ODA projects. Furthermore, when there is confirmed overseas demand for innovative products, PPS plans to quickly select and match the relevant companies and connect them to ministry-specific export support programs through a "Rapid Response Package for Overseas Demand."

To help procurement companies without export records secure initial performance, PPS will increase the budget for "overseas demonstration" to around 5 billion KRW this year and explore establishing vouchers specialized for entering overseas procurement markets.

Technologically excellent venture and innovative companies discovered by each ministry will be assisted in entering the procurement market through registration in Venture Nara (a mall exclusively for venture companies) and the Nara Market shopping mall. For novice procurement companies that cannot participate in public procurement due to lack of information, PPS will also establish a "Public Procurement Guide" that provides one-stop information on entering and utilizing the procurement market.

Director Lim Gi-geun stated, "To support companies' technological innovation and growth, it is important to establish a whole-of-government support system that provides an all-around package leveraging public procurement channels as a lever." He added, "PPS will gather voices from the field to ensure that the 'Support Plan for the Growth of Innovative Procurement Companies' is implemented swiftly and responsibly."

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