Public Procurement Service to Expand Scope of Pilot Procurement for Innovative Products... Driving Growth and Advancement of New Industries

The scope of next year's pilot procurement project for innovative products will be expanded. The pilot procurement initiative was introduced to facilitate the entry of innovative products into the public market and to help expand domestic and international sales channels if the pilot use yields successful results.

Seungbo Baek, Administrator of the Public Procurement Service, is explaining related matters at the Government Daejeon Complex after the 'Joint Ministry Work Report' on the 11th. Photo by Jeong Ilwoong

On December 11, the Public Procurement Service reported its major policies at the 'Joint Ministry Work Report' presided over by the President. At this event, the Public Procurement Service announced that the budget for next year's pilot procurement of innovative products would be increased from 52.9 billion won to 83.9 billion won. The agency also stated that it would encourage the advancement of innovative products by expanding research and development (R&D) support and strengthening feedback mechanisms.

With a goal of increasing the scale of innovative procurement to 3 trillion won by 2030, the agency also plans to actively collaborate with the private sector and local governments to discover innovative products in new industries such as artificial intelligence (AI), robotics, and biotechnology.

The agency will focus its efforts on fostering new industries, including AI, by leveraging public purchasing power. To this end, the government plans to lower entry barriers by easing requirements for delivery records so that it can become the first purchaser of AI products and services, thereby creating an initial market. It will also establish an evaluation system centered on technology and capabilities.

The work report also included measures to gradually expand the autonomy of public procurement demand agencies, such as local governments. Starting January 2 next year, Gyeonggi Province and North Jeolla Province will be allowed, on a trial basis, to directly purchase electrical and electronic products without being required to buy items under the Public Procurement Service's unit price contracts.

According to the Public Procurement Service, after the pilot operation, it plans to analyze the results and allow all local governments to selectively purchase necessary items directly starting in 2027.

However, to minimize side effects such as corruption and irregularities resulting from expanded autonomous purchasing, the Public Procurement Service will put in place safeguards by monitoring its own procurement contracts and recommending corrective actions in cases of regulatory violations or unfair conditions. In addition, all contract information will be made public in real time, and a 'one-strike-out' policy will be applied if corruption or irregularities are detected.

Furthermore, the Public Procurement Service plans to focus its efforts on building a reliable public procurement system based on principles and fundamentals, as well as fostering a public procurement environment that supports the sustainable growth of businesses.

Seungbo Baek, Administrator of the Public Procurement Service, stated, "Public procurement is an administration that breathes with the market," and added, "The Public Procurement Service will strategically utilize the public procurement purchasing power, which amounts to 225 trillion won annually, to contribute to the national economy and the safety of people's livelihoods."

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