"Introduction of Payment Linkage System for Public Market Deliveries"…Korea Federation of SMEs Holds Forum

Seeking Institutional Improvement Measures to Alleviate Burden on SMEs

The Korea Federation of Small and Medium Business (Kbiz) announced on the 16th that it held a "Discussion Forum on the Introduction of a Public Procurement-linked Payment System" at the Kbiz headquarters in Yeouido, Seoul.

Kim Ki-moon, President of the Korea Federation of SMEs
Photo by Yonhap News

This forum was organized to explore institutional improvement measures to alleviate the burden on small and medium enterprises (SMEs) caused by rising raw material prices in public procurement.

Kim Jae-hyun, Director of the Public Finance Strategy Institute, who gave the keynote presentation, analyzed the effectiveness of the current contract amount adjustment system under the National Contract Act and proposed introducing the payment linkage system, which has been implemented in the private market, into the public procurement market.

The forum was chaired by Professor Kwak Soo-geun of Seoul National University. Panelists included Professor Jang Myung-gyun of Hoseo University, Kim Dae-sik, Center Director of the Korea Institute of Public Procurement, Choi Soo-jung, Research Fellow at the Korea Institute for Small and Medium Venture Business, Lee Sang-woo, Chairman of the Korea Surveillance Equipment Industry Cooperative, Yang Chan-hoe, Head of the Innovation Growth Division at Kbiz, Park Cheol-woong, General Manager of Purchasing at the Public Procurement Service, and Noh Hyung-seok, Director of the Unfair Trade Improvement Division at the Ministry of SMEs and Startups.

Yang Chan-hoe, Head of the Innovation Growth Division at Kbiz, stated, “The public procurement market is very important for SMEs, but the current contract amount adjustment system under the National Contract Act has stringent requirements and requires extensive documentation, making it difficult for SMEs to utilize. The payment linkage system, introduced in the private market last year, should be promptly introduced into the public procurement market to alleviate the burden on SMEs caused by rising raw material prices.”

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