The South Korean government is upping its support of innovative growth and job measures.
With that in mind,... officials are busy drawing up changes to the national contract law.
Kim Hyesung explains how it would work.
The government is putting forward a revised bill on bidding methods.
The finance ministry says the revision to the national contract law includes a so-called 'competitive dialogue bidding system' to help foster purchases of innovative goods and services.
Under the system, bidders will directly communicate with the ordering body to identify the best way to satisfy their needs and to find the most qualified bidder.
The government will also allow private contracts between R&D manufacturers and government institutions to help public purchases of innovative goods.
"Introducing a competitive bidding system is a move in the right direction that will help raise quality. But private contracts don't have a bidding system. There would need to be more specific criteria and evaluation methods for private contracts. Otherwise, it could open the door to corruption or bribery in the contract winning process."
To prevent purchases of low cost, low quality goods, the ministry says existing low-cost bidding contracts on goods below 210 million Korean won, or 194-thousand U.S. dollars, will be abolished.
Instead, the government will apply competitive bidding methods for startups and venture companies on contracts below 100 million won, or around 92-thousand dollars.
There will also be clearer standards on contract unit prices.
In addition, social enterprises and companies that create more jobs will be given extra bidding benefits.
For companies with a history of labor law violations, bidding qualification limits will be extended from one month to three months.
The revised bill is expected to be proclaimed and implemented later this year.
Kim Hyesung, Arirang News.
