PPS said it revised the “Excellent Procurement Products Designation and Management Rules” and the “Additional Special Conditions for Goods Purchase and Manufacturing Contracts,” with the changes taking effect from the 27th. The agency said the revisions reflect feedback from companies, strengthen review expertise, improve extension requirements and ease some rules to reduce burdens while supporting the growth of technology-focused firms.
To improve the professionalism of technical evaluations, PPS subdivided review fields from eight to nine. The construction and environment field was split into civil and environmental works and building materials, and the electrical and electronics field was divided into electrical lighting and electronic devices. PPS also adjusted extension requirements, including export performance and the share of investment in technology development, to better match industry conditions.
PPS said it will also broaden how delivery performance can be used to extend a designation. A delivery-performance item previously recognized only for new companies will be accepted for existing designated companies as grounds for extension if they meet certain requirements, such as the number of deliveries and customer satisfaction scores, to support continued growth of strong technology firms.
To curb excessive concentration in deliveries to a specific company, PPS will apply the concentration management system to items with high market share and monopoly-like characteristics. After monitoring for one year, if concentration does not ease, PPS said it will introduce competitive procedures through supplier evaluations.
To strengthen the effectiveness of satisfaction evaluations by purchasing agencies, PPS will raise the minimum grade threshold from 75 points to 85 points and disclose evaluation results so agencies can use more reasonable purchasing information.
PPS said companies involved in serious industrial accidents will receive minus 5 points in credibility during designation reviews, and such companies will be added as a reason for exclusion from designation extensions, underscoring corporate responsibility for safety management.
To prevent improper contract performance and promote fair procurement, PPS will require completion of Excellent Product training when reviewing extension applications. However, citing limited training capacity relative to demand, PPS said the requirement will apply to companies applying for extensions from 2028 after expanding the number of sessions and training institutions.
PPS also announced measures to streamline field-centered regulations. Patent application confirmation documents had been issued only by the Korea Patent Technology Promotion Agency, but PPS added the Korea Invention Promotion Association as an issuing body to shorten processing times and reduce industry burdens.
PPS said that when an Excellent Product designation is granted based on an Innovative Product status, and the Innovative Product designation period expires before the Excellent Product designation start date, the Excellent Product designation date may be shortened or changed to help ensure continuity in market access.
In addition, PPS specified settlement methods for industrial safety and health management costs. For collaborative entities, PPS said it established a basis to recognize a participating company’s certification when the lead company cannot obtain certification due to legal restrictions.
The Excellent Procurement Products program designates and publicly announces goods with outstanding performance, technology or quality to help small and venture businesses market technology-developed products. Designated items can be registered on the Nara Marketplace integrated shopping mall after signing unit-price contracts through private contracts.
PPS Commissioner Baek Seung-bo said, “This system improvement is intended to create an environment where capable small businesses can continue to grow using public procurement as a springboard and to establish fairness in the market.” He added, “We will continue improving on-site regulations that hold companies back and create a business-friendly environment to support the growth of strong technology development companies.”
* This article has been translated by AI.
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