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Local laws and regulations

What is the Public Procurement System for SME Products?

The Public Procurement System for SME Products refers to a set of measures outlined in the "Act on the Promotion of SME Growth and Product Purchases" (hereinafter referred to as the "Procurement Promotion Act"). These measures aim to expand the purchase of SME products by public institutions defined in Article 2 of the Act, including national agencies, local governments, public institutions under the Act on the Management of Public Institutions, local public corporations, public enterprises, and other organizations under special laws.

Key Details

Types of
Systems
Details of the Public Procurement System

SME-exclusive competitive bidding, direct procurement (management) of construction materials, procurement target ratio system for SME products, confirmation of direct production, and priority procurement of technology development products.

Procurement Methods
Procurement Methods

For SME-exclusive competitive products, contracts are primarily concluded through restricted or designated competitive bidding among SMEs. Other methods, such as negotiated contracts based on separate laws or the use of Multiple Award Schedule (MAS), are also allowed.

Applicable Institutions
Institutions subject to the Procurement Promotion Act

Include public institutions and their subsidiaries as defined under Article 2 of the Act

Features of the Procurement Promotion Act

The Procurement Promotion Act takes precedence over the National (Local) Contract Act due to its special provisions

It applies to restricted (designated) competitive bidding among SMEs, direct procurement of construction materials, and priority procurement of technology development products designated by the Administrator of the SME Administration, overriding the National Contract Act

Related Laws

  1. 1

    Act on the Promotion of SME Growth and Product Purchases

  2. 2

    Act on Contracts to which the State is a Party

  3. 3

    Act on Contracts to which Local Governments are Parties

  4. 4

    Operational Guidelines for the Public Procurement System for SME Products

  5. 5

    Enforcement Rules for the Priority Procurement System for SME Technology Development Products