Korea's Procurement Agency Overhauls Regulations for Software Contracts

By Yujin Kim Posted : October 21, 2026, 10:16 Updated : October 21, 2026, 10:16

To reduce administrative burdens on commercial software companies and lower market entry barriers, the Korea Procurement Agency announced that individuals can now register for contracts valued at 20 million won or less. Additionally, the agency has eliminated delivery performance requirements for social economy organizations to assist weaker enterprises in entering the market.


On October 20, the Procurement Agency fully revised and implemented the 'Multiple Supplier Contracts (MAS) Processing Regulations and Special Conditions,' which took effect on October 21.


To facilitate the rapid market entry of software that requires purchasing activation, such as artificial intelligence (AI), the agency will allow individual registrations for contracts under 20 million won. Furthermore, the agency has abolished delivery performance requirements for social enterprises and other social economy organizations. The timing for mandatory training, a crucial step for entering the procurement market, has been changed from 'before eligibility evaluation' to 'before contract signing' to expedite the contracting process for companies.


The criteria for adding items to contracts have also been significantly relaxed. The period for item addition has been reduced from 90 days to 50 days. In cases of major upgrades, the restriction period will be completely lifted, and for minor upgrades with no price changes, immediate contract modifications will be permitted.


Finally, regulations that increased burdens on companies have been extensively revised. Instead of immediately suspending transactions for companies that do not apply for interim inspections, a new 'one-month sales suspension' procedure has been established. Notably, the agency prohibits demand organizations from imposing unfair contract conditions or making unreasonable demands that violate contract terms. Additionally, if the Procurement Agency requests corrections regarding unfair procurement practices by demand organizations, it is now obligated to comply.


Lim Heon-eok, Director of the Technical Services Bureau at the Procurement Agency, stated, "This revision goes beyond merely changing regulations; it transforms the paradigm of public procurement from management to support. We will continue to listen to the voices of businesses and create a procurement environment that allows software companies to focus solely on technological innovation without being constrained by regulations."





* This article has been translated by AI.

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