More than 92% of the policy research contracts issued by the Ministry of Finance were awarded without competitive bidding. Despite calls from the National Assembly to improve the practice of direct contracts and the confidentiality of research results, the proportion of such contracts has actually increased compared to the previous year.
According to a report by the National Assembly Budget Office analyzing government actions regarding the 2024 fiscal year settlement, 69 out of 75 policy research contracts initiated by the Ministry in 2025 were awarded through direct contracts, accounting for 92% of all contracts.
Two contracts were converted to direct contracts after failed competitive bids, and one was awarded through limited competition. Only three contracts, or 4% of the total, were awarded through open competition.
The share of direct contracts rose from 86.5% in 2024 to 92% in 2025, an increase of 5.5 percentage points. In 2023, 79 out of 83 contracts, or 95.2%, were also awarded without competition.
In the last three years, only five out of 247 policy research contracts were awarded through open competition. Specifically, there was one contract each in 2023 and 2024, and three contracts in 2025.
Previously, during the review of the 2024 fiscal year settlement, the National Assembly pointed out issues with the contract and disclosure practices of the Ministry of Finance's policy research. Among 34 research projects examined over the past five years, 31 were awarded through direct contracts, and 27 results were not made public.
Of the direct contracts, 10 were for projects with estimated costs below 20 million won. The remaining 21 contracts were awarded without competitive bidding due to the need for specific skills, experience, or specialized knowledge and technology required for academic research.
The National Assembly has urged the Ministry of Finance to reduce the use of direct contracts and to disclose research results unless absolutely unavoidable. The Ministry reported that it would prioritize budget allocations for projects requiring competitive bidding and result disclosure, stating that measures were completed in October of last year.
However, the annual contract performance for 2025 did not show any improvement. The Budget Office concluded that the increased proportion of direct contracts indicated that the National Assembly's recommendations had not been realized.
The National Contract Act stipulates that general competition is the principle for government contracts. However, exceptions are made for academic research projects with estimated costs below 20 million won or those requiring specialized knowledge and skills.
Government guidelines for budget and fund execution also mandate that contracts should be awarded through open competition, except for tasks that must be performed through direct contracts. Critics argue that while the unique nature of research may be acknowledged, the prevalence of direct contracts undermines the intent of related regulations.
The Budget Office stated, "The Ministry of Finance and the Ministry of Planning and Budget need to minimize the proportion of direct contracts for future policy research services and pursue open competition contracts in accordance with the intent of relevant laws."
* This article has been translated by AI.
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