GOVERNMENT PROCUREMENT ACT (Korean: 조달사업에 관한 법률)

#### Article 1 (Purpose) The purpose of this Act is to prescribe matters necessary for the scope, administration and management of public procurement services to ensure the fair and efficient performance thereof.

#### Article 2 (Definitions) The definitions of terms used in this Act are as follows: <Amended on Jun. 9, 2020> 1. "Procurement commodities" means demand commodities and stockpile commodities; 2. "Demand commodities" means the commodities prescribed by Presidential Decree, which are required by an end-user institution; 3. "Stockpile commodities" means any raw materials, facility materials, and daily necessities the Government stores up or supplies either solely or in cooperation with the private sector, for the smooth supply and demand of commodities, price stabilization, and preparedness for emergencies, such as disasters and national crises, both on a short-term and long-term basis, which are commodities prescribed by Presidential Decree; 4. "Safety management commodities" means the procurement commodities related to the safety of citizens’ living, protection of life, and public health and sanitation, which are designated and publicly notified by the Administrator of the Public Procurement Service; 5. "End-user institution" means any of the following agencies requiring procurement commodities, conclusion of contracts for construction works, or management of facilities: a. Independent government bodies and central government agencies under Article 6 of the National Finance Act (hereinafter referred to as "State agencies"); b. Local governments under Article 2 of the Local Autonomy Act (hereinafter referred to as "local governments"); c. Other agencies prescribed by Presidential Decree.

#### Article 3 (Scope of public procurement services) The scope of public procurement services conducted by the Administrator of the Public Procurement Service is as follows: 1. Purchase, distribution management, and supply of procurement commodities, and other services ancillary thereto; 2. Awarding construction contracts for end-user institutions, and other services ancillary thereto; 3. Administration and operation of facilities for end-user institutions, and other services ancillary thereto; 4. Quality management of procurement commodities and safety management commodities; 5. Cooperation in international procurement and support for overseas procurement market expansion; 6. Other services that the Administrator of the Public Procurement Service may or is required to perform under other statutes and regulations.

#### Article 4 (Relationship to other statutes) Public procurement services shall be governed by this Act, except as otherwise provided in any other statute. ## CHAPTER II FOUNDATION FOR PUBLIC PROCUREMENT POLICY

#### Article 5 (Procurement Policy Deliberation Committee) (1) A Procurement Policy Deliberation Committee (hereinafter referred to as the "Committee") shall be established under the jurisdiction of the Minister of Finance and Economy to deliberate on the following matters regarding procurement policies: <Amended on Jan. 2, 2024; Oct. 1, 2025> 1. Establishment of mid- to long-term policies and systems for public procurement; 2. Matters concerning the creation of public demand and selection of purchases for improvement of public services and technological innovation; 3. Matters concerning performance management and evaluation related to public procurement; 4. Matters regarding the operation, etc. of innovative product support center under Article 27-2; 5. Other matters referred to the Committee by the chairperson for deliberation so as to facilitate procurement policy. (2) The Committee shall be comprised of not more than 20 members including the chairperson. (3) The office of chairperson of the Committee shall be assumed by the Minister of Finance and Economy, and the members shall be appointed or commissioned by the Minister of Finance and Economy from among both the public officials of the relevant central administrative agency and those who have extensive knowledge of and experience in the fields of public procurement, economy, science, and technological innovation. <Amended on Oct. 1, 2025> (4) Subcommittees, such as the committee for creation of public demand, may be established by area under the Committee to ensure efficient operation of the Committee. In such cases, deliberation in the subcommittees shall be deemed deliberation in the Committee. (5) The Committee and subcommittees may have working committees to assist in their work. (6) Matters necessary for the organization and operation of the Committee, subcommittees and working committees shall be prescribed by Presidential Decree.

#### Article 6 (Encouragement of social responsibilities) In order to encourage social responsibilities of enterprises, the Administrator of the Public Procurement Service may reflect the social and environmental value, such as the environment, human rights, labor, employment, fair trade, and consumer protection, in the procurement procedures.

#### Article 7 (Procurement education) The Administrator of the Public Procurement Service may provide procurement education to improve the expertise and capabilities of personnel of the Public Procurement Service, end-user institutions, and private enterprises, engaging in procurement services or delivery services.

#### Article 8 (Procurement day) (1) In order to raise social awareness of and increase interest in the importance of public procurement and to promote the development of public procurement, September 30 of each year shall be designated as Procurement Day, and events shall be held to commemorate the Day. (2) Matters necessary for Procurement Day events may be determined and implemented by the Administrator of the Public Procurement Service.

#### Article 9 (Procurement statistics) (1) In order to ascertain the current status of public procurement and to formulate and implement effective procurement policies, the Administrator of the Public Procurement Service shall prepare statistics (hereafter in this Article referred to as "procurement statistics") on tenders, contracts, payment of consideration, etc. (including matters concerning subcontracts) of State agencies, local governments, and other institutions prescribed by Presidential Decree (hereafter in this Article referred to as "State agencies, etc."): <Amended on Jan. 2, 2024> (2) The Administrator of the Public Procurement Service may request State agencies, etc. to provide data necessary to prepare statistics on procurement. <Amended on Jan. 2, 2024> (3) Upon receipt of a request to provide data pursuant to paragraph (2), a State agency, etc. shall comply therewith, without good cause. (4) In order to collect procurement statistics, the Administrator of the Public Procurement Service may request State agencies, etc. to link their finance-related information systems prescribed by Presidential Decree and their in-house electronic procurement systems to the Korea Online E-Procurement System (referring to the Electronic Procurement System defined in subparagraph 4 of Article 2 of the Electronic Procurement Utilization and Promotion Act; hereinafter the same shall apply), and State agencies, etc. shall cooperate therewith unless there is a compelling reason not to do so. <Added on Jan. 2, 2024> (5) Matters necessary for the subject matters of statistics to be prepared under paragraph (1) and for the methods and procedures for preparing such statistics shall be prescribed by Presidential Decree. <Amended on Jan. 2, 2024>

#### Article 10 (Requests for providing data) (1) In any of the following cases, the Administrator of the Public Procurement Service may request the heads of the relevant administrative agencies to provide relevant data, as prescribed by Presidential Decree; in such cases, the heads of the relevant administrative agencies shall comply with such request unless there is a compelling reason not to do so: <Amended on Mar. 26, 2024> 1. Where necessary to efficiently promote the services of purchasing commodities to be procured from foreign countries and the formulation of stockpiling plans, among procurement services under Article 3; 2. Where necessary to investigate unfair procurement practices under Article 21; 3. Where necessary to effectively operate programs for assisting the entry into overseas procurement markets under Article 28; 4. Where necessary to investigate whether stockpiled commodities are resold under Article 29. (2) The data that the Administrator of the Public Procurement Service may request the head of the relevant administrative agency to provide pursuant to paragraph (1) shall be as follows: <Added on Mar. 26, 2024> 1. In cases falling under subparagraphs 1 through 3 of paragraph (1), data on export and import transactions, such as customs clearance records for commodities, etc.; 2. In cases falling under paragraph (1)2 and 4, data on electronic tax invoices of suppliers or of users under Article 29(2). (3) The Administrator of the Public Procurement Service shall, when processing data provided pursuant to paragraphs (1) and (2), protect it in accordance with the Personal Information Protection Act. <Amended on Mar. 26, 2024> ## CHAPTER III REQUESTS FOR ENTERING INTO CONTRACTS AND SPECIAL CASES CONCERNING CONTRACTING METHODS

#### Article 11 (Requests for entering into contracts) (1) Where the value of money requested for a contract, the nature of a contract, and any other matters comply with the standards prescribed by Presidential Decree, in entering into a contract pertaining to demand commodities or construction works, the head of an end-user institution shall request the Administrator of the Public Procurement Service to enter into a contract; provided, this shall not apply to cases prescribed by Presidential Decree for which it is impracticable to request the conclusion of a contract due to a natural disaster or other force majeure event or for which it is inappropriate to request the conclusion of a contract for national defense or the protection of national secrets or due to a disaster, emergency relief, or special features of technology. (2) The head of an end-user institution may request the Administrator of the Public Procurement Service to enter into a contract for the purchase of demand commodities or construction works even in cases not falling under the main clause of paragraph (1). (3) Where the Administrator of the Public Procurement Service is requested to enter into a contract under the main clause of paragraph (1) and paragraph (2), he or she shall determine a contracting method and others in consultation with the end-user institution, according to statutes and regulations that the end-user institution shall apply with respect to the conclusion of a contact; provided, consultation may be omitted if deemed unnecessary for the purpose or nature of contract. (4) If the consultation under the main clause of paragraph (3) ends in vain, the Administrator of the Public Procurement Service may have the end-user institution directly enter into a contract.

#### Article 12 (Unit price contracts for third parties) (1) With respect to a contract for manufacture, purchase, processing, etc. of demand commodities, which are required by an end-user institution, the Administrator of the Public Procurement Service may enter into a contract under which he or she only determines a unit price in advance (hereinafter referred to as "unit price contract for a third party"). (2) Where the other party to a contract requests the termination of the contract during the duration thereof due to the cessation of business caused by the deterioration of business, the difficulty in finding the raw materials or other reasons prescribed by Presidential Decree, the Administrator of the Public Procurement Service may accept such request except in the cases falling under any of the following subparagraphs: 1. Where delivery is currently in progress; 2. Where the other party commits an act falling under any of the subparagraphs of Article 22(1); 3. Other cases prescribed by Presidential Decree, such as a breach of contract. (3) Matters necessary for the conclusion and termination of unit price contracts for third parties shall be prescribed by Presidential Decree.

#### Article 13 (Contract with multiple suppliers) (1) When purchasing demand commodities required by an end-user institution, the Administrator of the Public Procurement Service may enter into a contract pursuant to Article 12 with at least two persons as parties to the contract (hereinafter referred to as "contract with multiple suppliers") so that the end-user institution can select demand commodities equal or similar to one another in quality, performance, efficiency, etc. (2) With respect to the conclusion of a contract with multiple suppliers, the other party to the contract shall keep the contract price equal to or lower than the market transaction price (referring to the price for which the other party to the contract enters into a contract directly with an end-user institution or the price at which the other party to the contract supplies the relevant product to the market) of the contracted product (including the products of the other party to the contract whose performance and specifications are equal to or higher than those of the contracted product). (3) If the other party to a contract violates paragraph (2) without good cause, the Administrator of the Public Procurement Service may reduce the amount of delivery by the difference between the two prices or request the other party to the contract to do so. (4) The conclusion of contracts with multiple suppliers, the reduction of the amount of delivery by the difference and requests for such reduction, and other necessary matters, shall be prescribed by Presidential Decree.

#### Article 14 (Special cases concerning contracting methods) (1) The Administrator of the Public Procurement Service may enter into a contract according to the contracting methods prescribed by Presidential Decree, if he or she deems it necessary to purchase and supply procurement commodities required by each end-user institution. <Amended on Jun. 9, 2020> (2) Where the Administrator of the Public Procurement Service purchases standardized products in a scale not smaller than the scale prescribed by Presidential Decree, among competing products manufactured by small and medium enterprises in Article 6 of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets, in order to increase opportunities for small enterprises in Article 2(2) of the Framework Act on Small and Medium Enterprises and micro enterprises in Article 2 of the Framework Act on Micro Enterprises to receive orders, he or she may execute a procurement contract through competitive bidding among joint suppliers composed of small and medium enterprises in Article 2 of the Framework Act on Small and Medium Enterprises. <Amended on Mar. 31, 2020> (3) If it is found that bidders negotiated and agreed on bidding prices in advance during the competitive bidding pursuant to paragraph (2) or joint suppliers colluded in bidding for successful bidding of a particular person, the Administrator of the Public Procurement Service shall take necessary measures, such as the revocation of a decision on a successful bidder or the cancellation, termination, etc. of a contract, against such bidders; provided, this shall not apply where an exceptional situation prescribed by Presidential Decree exists, such as where no suitable contractor or manufacturer exists, except those against whom necessary measures, such as the revocation of a decision on a successful bidder or the cancellation, termination, etc. of a contract, shall be taken. (4) The Administrator of the Public Procurement Service shall place restrictions on the qualification of members of a joint supplier referred to in the main clause of paragraph (3) for participating in bidding pursuant to Article 27 of the Act on Contracts to which the State is a Party. (5) The scope of standardized products, the organization of joint suppliers, etc. pursuant to paragraph (2) shall be prescribed by Presidential Decree. ## CHAPTER IV PRICE PAYMENT

#### Article 15 (Price payment) (1) Where the Presidential Decree determines that it is more efficient for the Administrator of the Public Procurement Service to pay the price for the performance of a contract on behalf of the head of an end-user institution (hereinafter referred to as "substitute payment") in view of the scale of the contractor, contracting method, its own financial conditions, etc., on condition that the contract concluded as such has been performed in normal ways, the Administrator shall pay such price in substitution. (2) Where substitute payment has not been made by the Administrator of the Public Procurement Service as it does not fall under paragraph (1), the head of an end-user institution shall directly pay the relevant price to the other party to the contract, and notify the Administrator of the Public Procurement Service of the fact as soon as such payment is made. (3) Where the head of an end-user institution intends to pay the price in advance under Article 26 of the Management of the National Funds Act and Article 35 of the Local Accounting Act, he or she may make an advance payment to the Administrator of the Public Procurement Service. (4) Matters necessary for collection procedures, payment deadline, etc. for the amount paid in substitution under paragraph (1) shall be prescribed by Presidential Decree.

#### Article 16 (Fees) (1) The Administrator of the Public Procurement Service may collect fees from end-user institutions in relation to public procurement services. (2) Fees referred to in paragraph (1) shall be deemed the revenue of the special account for procurement under subparagraph 4 of Article 3 of the Government Enterprise Budget Act (hereinafter referred to as "special account for procurement"). (3) The Administrator of the Public Procurement Service may grant the reduction or exemption (hereinafter referred to as "reduction or exemption") of fees under paragraph (1) if any of the following subparagraphs applies: 1. Where he or she has been paid the price from the head of an end-user institution in advance under Article 15(3); 2. Where the conclusion of a contract for demand commodities or construction works is delayed due to any reason not attributable to an end-user institution; 3. Other cases prescribed by Presidential Decree where it is necessary to grant the reduction or exemption of fees, such as the facilitation of purchase of small and medium enterprise-manufactured products. (4) Matters necessary for the determination and procedures for collection of fees referred to in paragraph (1) and the reduction or exemption of fees referred to in paragraph (3) shall be prescribed by Presidential Decree.

#### Article 17 (Arrears) The Administrator of the Public Procurement Service may impose an arrear, as prescribed by Presidential Decree, on the head of any end-user institution who fails to pay the amount paid in substitution under Article 15(1) or fees under Article 16(1) by the deadline for payment. ## CHAPTER V QUALITY MANAGEMENT OF PROCUREMENT COMMODITIES AND SAFETY MANAGEMENT COMMODITIES

#### Article 18 (Quality management of procurement commodities) (1) In order to improve the quality of procurement commodities, the Administrator of the Public Procurement Service may execute the following affairs for quality management: 1. Inspection of production facilities and manpower to ascertain whether a manufacturer produces commodities directly; 2. Quality inspection and inspection upon delivery to ascertain the production and delivery of products in conformity with agreed specifications; 3. Follow-up management of delivered commodities; 4. Development and examination of standard specifications for procurement commodities; 5. Other affairs necessary for the quality management of procurement commodities. (2) The Administrator of the Public Procurement Service may require businesses subject to test or inspection to bear expenses incurred in testing or inspection for quality management under paragraph (1)2, as prescribed by Presidential Decree; provided, expenses incurred in testing and inspecting commodities upon delivery shall be borne by each business so inspected. (3) Matters regarding the standards, procedures, etc. necessary to execute quality management under paragraph (1) shall be determined and publicly notified by the Administrator of the Public Procurement Service.

#### Article 19 (Quality management of safety management commodities) (1) For the safety of the people, the Administrator of the Public Procurement Service shall execute the affairs referred to in the subparagraphs of Article 18(1) for the quality management of safety management commodities. (2) Matters necessary for the selection of items of safety management commodities, and the revocation and change thereof, shall be prepared and publicly notified by the Administrator of the Public Procurement Service, in consultation with related agencies.

#### Article 20 (Special cases concerning quality management) Upon receipt of a request from the head of a relevant agency or institution to conduct an inspection on delivery pursuant to Article 18(1)2 regarding commodities or services falling under any of the following subparagraphs, the Administrator of the Public Procurement Service may conduct the inspection on delivery on behalf of the head of the agency or institution, notwithstanding the provisions of Article 14 of the Act on Contracts to which the State Is a Party, Article 17 of the Act on Contracts to which a Local Government Is a Party, and Article 28 of the Defense Acquisition Program Act: 1. Commodities or services directly procured by the head of a State agency (including the head of a public institution); 2. Commodities or services directly procured by the head of a local government; 3. Commodities or services directly procured by the Commissioner of the Defense Acquisition Program Administration. ## CHAPTER VI FAIRNESS IN PUBLIC PROCUREMENT SERVICES

#### Article 21 (Investigation into unfair procurement practices) (1) Upon receipt of a report on any of the following practices that harm fairness in the procurement process for demand commodities (hereinafter referred to as "unfair procurement practices"), the Administrator of the Public Procurement Service may require public officials under his or her jurisdiction to demand the submission of relevant materials from the other party to the contract, the bidder, or the person who has submitted a quotation through the integrated national electronic procurement system (referring to the integrated national electronic procurement system (hereafter in this Article referred to as "other party to the contract, etc."), or may require them to visit any office, place of business, factory, etc. to inspect facilities, documents, etc., if necessary for investigating the report: <Amended on Jun. 9, 2020; Jan. 2, 2024> 1. Counterfeiting or falsifying any document regarding the bid, contract, inspection upon delivery, etc., or submitting any false document; 2. Delivering goods in violation of direct production standards; 3. Delivering goods with any false label of the place of origin; 4. Delivering goods inconsistent with the contract standards without prior consent of the end-user institution, etc.; 5. Violating Article 13(2); 6. Obtaining designation of exemplary procurement commodities, etc. under Article 26(1) by fraud or improper means. (2) A public official conducting the inspection under paragraph (1) shall present identification verifying his or her authority to relevant parties. (3) A public official conducting the inspection under paragraph (1) shall do so within the minimum extent necessary for enforcing this Act, and shall not abuse his or her authority for other purposes. (4) Where any unfair procurement practice is found, the Administrator of the Public Procurement Service may require the other party to the contract, etc. to rectify such practice, and shall take dispositions or other actions pursuant to relevant statutes and regulations, such as the Act on Contracts to Which the State Is a Party, or the terms and conditions of the contract. (5) Where required to rectify under paragraph (4), the other party to the contract, etc. may raise an objection to the Administrator of the Public Procurement Service, as prescribed by Presidential Decree. (6) Where the other party to a contract, etc. gains any profit from any unfair procurement practice under paragraph (1)1 through 6, the Administrator of the Public Procurement Service may redeem it. (7) Where deemed necessary, the head of an end-user institution may request an investigation into unfair procurement practices from the Administrator of the Public Procurement Service, and if the Administrator of the Public Procurement Service requests him or her to submit materials necessary for investigation, he or she shall comply therewith, unless there is a compelling reason not to do so.

#### Article 22 (Suspension of transactions) (1) If the other party to a contract concluded pursuant to Article 12 and 13 falls under any of the following subparagraphs at the time of implementing the contract, the Administrator of the Public Procurement Service may have the other party to the contract or the detailed commodities or items suspended from transaction for up to two years, as prescribed by Presidential Decree: 1. Where the other party violates Article 13(2); 2. Where the place of origin of commodities is falsely registered in the Electronic Procurement System established by the Administrator of the Public Procurement Service pursuant to Article 12 of the Electronic Procurement Utilization and Promotion Act; 3. Where the other party joins with another party to the contract in forging a related document, such as an electronic tax invoice, or in committing a fraudulent act, such as counterfeiting or falsification, in the process of bidding or concluding or implementing the contract; 4. Where the other party commits an act specified by Presidential Decree in the process of bidding or concluding or implementing the contract. (2) Details of and standards for suspension of transactions pursuant to paragraph (1), and other necessary matters, shall be prescribed by Presidential Decree.

#### Article 23 (Payment of monetary rewards) (1) The Administrator of the Public Procurement Service may pay a monetary award within budgetary limits to a person who has reported or informed on the act of giving or receiving a bribe in relation to the duties of a public official performing public procurement services or on an unfair procurement practice and submitted evidential materials backing it up (hereinafter referred to as "reporter, etc."). <Amended on Jun. 9, 2020> (2) A person who has received a report or information under paragraph (1) shall keep confidentiality on identity, etc. of the reporter, etc. (3) Matters concerning the scope of persons eligible to receive monetary awards under paragraph (1) and the criteria and procedures for payment of monetary awards shall be prescribed by Presidential Decree. ## CHAPTER VII ASSISTANCE TO END-USER INSTITUTIONS AND SUPPLIERS

#### Article 24 (Assistance in and vicarious execution of procurement services of end-user institutions) If requested by the head of an end-user institution, the Administrator of the Public Procurement Service may provide assistance in or vicariously perform any of the following affairs prescribed by Presidential Decree: <Amended on Jun. 9, 2020> 1. Procurement of demand commodities related to the software business defined in subparagraph 3 of Article 2 of the Software Promotion Act and affairs related to projects pertaining thereto; 2. Contracts for construction works and affairs related to projects pertaining thereto.

#### Article 25 (Assistance to suppliers) The Administrator of the Public Procurement Service may provide assistance for suppliers to enter into the procurement market, such as operating assistance centers and online commodity malls, as prescribed by Presidential Decree.

#### Article 26 (Designation of exemplary procurement commodities) (1) The Administrator of the Public Procurement Service may designate and publicly notify any of the following commodities or trademarks as exemplary procurement commodities or exemplary procurement joint trademarks (hereafter referred to as "exemplary procurement commodities, etc." in this Article) to improve the quality of procurement commodities: 1. Exemplary procurement commodities: Commodities produced by any of the following enterprises, the performance, technology or quality of which meets the standards prescribed by Presidential Decree: a. Any of the small and medium enterprises referred to in Article 2(1) of the Framework Act on Small and Medium Enterprises; b. Any of the enterprises which meets the criteria prescribed by Presidential Decree, such as the amount of sales and the period elapsed since it has become a middle-standing enterprise, among the middle-standing enterprises under Article 2 of the Special Act on the Promotion of Growth and the Strengthening of Competitiveness of Middle-Standing Enterprises; 2. Exemplary procurement joint trademarks: Joint trademarks developed and retained by small and medium entrepreneurs (referring to small and medium entrepreneurs under Article 2(1) of the Framework Act on Small and Medium Enterprises) not less than the number prescribed by Presidential Decree to enhance sales activities, the technology, quality certification, etc. of which meet the standards prescribed by Presidential Decree. (2) The Administrator of the Public Procurement Service may take necessary measures to increase the purchase of and to expand a market for exemplary procurement commodities, etc., as prescribed by Presidential Decree. (3) The Administrator of the Public Procurement Service may suspend the effect of or revoke the designation of exemplary procurement commodities, etc. designated under paragraph (1), in cases prescribed by Presidential Decree, including failure to meet initial designation standards. (4) Details on designation procedures and period of exemplary procurement commodities, etc., the suspension of effect of designation, and the revocation of designation, shall be prescribed by Presidential Decree.

#### Article 27 (Support for public purchase of innovative products) (1) To improve public services and promote technological innovation, the Administrator of the Public Procurement Service may support the public purchase of innovative products that serve the public interest (hereinafter referred to as "innovative products"), designated as such after deliberation by the Committee pursuant to Article 5(1)2, according to each of the following: 1. Trial purchase and supply of innovative products; 2. Building and operation of public purchase support system for innovative products. (2) The Administrator of the Public Procurement Service shall consult in advance with the Minister of Finance and Economy about the methods of supporting public purchase under paragraph (1), and matters necessary therefor shall be prescribed by Presidential Decree. <Amended on Oct. 1, 2025> (3) If a product designated under paragraph (1) fails to meet the initial designation standards or otherwise falls under any of the cases prescribed by Presidential Decree, the Administrator of the Public Procurement Service may revoke the designation. (4) Where a person in charge of purchase at an end-user institution has purchased an innovative product, he or she shall not be liable for any loss incurred from the purchase of such product unless his or her intent or gross negligence is proved.

#### Article 27-2 (Innovative product support center) (1) In order to support the public purchase of innovative products under Article 27, the Administrator of the Public Procurement Service may designate an innovative product support center (hereinafter referred to as "support center") to fully or partially perform the following business affairs to support the public purchase of innovative products: 1. Identifying and recommending innovative products; 2. Providing education, public relations, and consulting services for end-user institutions and suppliers; 3. Assisting suppliers that have obtained the designation of innovative products with their entrance into overseas procurement markets; 4. Policy research and overseas case surveys to revitalize the public purchase of innovative products. (2) The Administrator of the Public Procurement Service shall have a prior consultation with the Minister of Finance and Economy on the designation, etc. of support centers. <Amended on Oct. 1, 2025> (3) In any of the following cases, the Administrator of the Public Procurement Service may revoke the designation of a support center or issue an order to suspend operation of its business for a specified period not exceeding six months; provided, he or she shall revoke the designation if a support center falls within subparagraph 1: 1. Where it has obtained the designation by fraud or other improper means; 2. Where it has lost its ability to perform its business affairs or business; 3. Where it ceases to meet the criteria for designation under paragraph (6). (4) Where the Administrator of the Public Procurement Service intends to revoke the designation of a support center pursuant to paragraph (3), he or she shall hold a hearing. (5) The Administrator of the Public Procurement Service may fully or partially subsidize expenses incurred by a support center in performing its duties, within the budget. (6) The standards for designation of support centers, procedures for designation and revocation of designation, and other matters necessary for the operation, etc. of support centers shall be prescribed by Presidential Decree. [This Article Added on Jan. 2, 2024]

#### Article 28 (Cooperation in international procurement and assistance in entry into overseas procurement markets) (1) In order to create an environment for fair competition in the procurement market, the Administrator of the Public Procurement Service may expand exchanges and cooperation with related domestic institutions and procurement authorities in foreign countries and may assist domestic enterprises in entering into overseas procurement markets. (2) Procedures and methods for assisting domestic enterprises’ entry into overseas procurement markets under paragraph (1), and other necessary matters, shall be prescribed by Presidential Decree. ## CHAPTER VIII STOCKPILING PROJECTS

#### Article 29 (Purchase and supply of stockpile commodities) (1) The Administrator of the Public Procurement Service may determine the timing and quantity of purchase of stockpile commodities by item in consideration of the domestic supply and demand status of stockpile commodities. (2) A person who intends to use stockpile commodities supplied by the Administrator of the Public Procurement Service (hereinafter referred to as "user") shall register himself or herself in the Korea ON-Line E-Procurement System, as determined by the Administrator of the Public Procurement Service. (3) A user shall not resell stockpile commodities supplied by the Administrator of the Public Procurement Service to another person without manufacturing or processing them; provided, this shall not apply where it has obtained approval from the Administrator of the Public Procurement Service due to unavoidable causes, such as default, bankruptcy, or suspension of production of the user, and the detailed requirements for approval shall be determined and publicly notified by the Administrator of the Public Procurement Service. <Amended on Mar. 26, 2024> (4) The Administrator of the Public Procurement Service shall cancel the user registration of any legal entity that violates paragraph (3) and the representative thereof, and may restrict the user registration thereof for up to two years, as prescribed by Presidential Decree. (5) The Administrator of the Public Procurement Service may recover the difference between the original amount of payment and the amount of resale by the user that violated paragraph (3), as prescribed by Presidential Decree.

#### Article 30 (Determination of sales price of stockpile commodities) (1) The sales price of stockpile commodities shall be determined by the Administrator of the Public Procurement Service by considering the purchase cost (including expenses directly incurred for management, including the price of goods and distribution management costs; hereinafter the same shall apply), demand and supply of commodities in question, the trend of price and any other aspects. (2) Where the sales price of stockpile commodities exceeds the purchase cost, the amount of excess shall be deemed the revenue of the special account for procurement. (3) The Administrator of the Public Procurement Service shall require an end-user institution or a private company to pay the sales price before delivering stockpile commodities; provided, he or she may permit the end-user institution or private company to pay the sales price after delivering stockpile commodities, at its request, if deemed necessary for efficient execution of a stockpile project. (4) A person who intends to purchase any stockpile commodities (excluding the Administrator of the Public Procurement Service and private business operators under Article 32(2)) may pay the purchase price of the stockpile commodities by credit card, debit card, etc. (hereafter referred to as "credit card, etc." in this Article) through an institution designated by the Administrator of the Public Procurement Service, as prescribed by Presidential Decree, to make vicarious payment of purchase prices of stockpile commodities (hereafter referred to as "institution for vicarious payment of price of stockpile commodities" in this Article). (5) Where the purchase price of any stockpile commodities is paid by credit card, etc. under paragraph (4), the date of approval granted by the institution for vicarious payment of price of stockpile commodities shall be deemed the date of payment of the purchase price. (6) An institution for vicarious payment of price of stockpile commodities may receive fees from persons who intend to purchase stockpile commodities, in return for the vicarious payment of the purchase prices. (7) Matters necessary for the designation and operation of institutions for vicarious payment of price of stockpile commodities, fees for vicarious payment, etc., shall be prescribed by Presidential Decree.

#### Article 31 (Derivatives trading) (1) The Administrator of the Public Procurement Service may deal in derivatives under Article 5(1)1 and 2 of the Financial Investment Services and Capital Markets Act, if required to avoid risks due to the price fluctuation and the unstable supply and demand of stockpile commodities. (2) Details and scope of derivatives trading under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree.

#### Article 32 (Private-public joint stockpiling projects) (1) The Administrator of the Public Procurement Service may perform a private-public joint stockpiling project in cooperation with private sectors, if required to revitalize stockpiling projects. (2) The Administrator of the Public Procurement Service may provide support necessary for commodities stockpiled by a private business operator participating in a private-public joint stockpiling project under paragraph (1) and reduce or exempt fees for using stockpiling facilities if the properties and quantity of stockpile commodities, a stockpiling period and any other matters meet the standards prescribed by Presidential Decree, notwithstanding the provisions of Article 32 and 34 of the State Property Act. (3) The Administrator of the Public Procurement Service may request a private business operator who has received support or whose usage fees have been reduced or exempted under paragraph (2) to preferentially sell the commodities stockpiled by the said business operator to the Public Procurement Service, and take disciplinary measures prescribed by Presidential Decree, including collecting back the usage fees reduced or exempted under paragraph (2), if the said business operator fails to comply therewith, without good cause. <Amended on Jun. 9, 2020> (4) Subjects eligible to participate in private-public joint stockpiling projects under paragraph (1), the method of participation and other necessary matters shall be prescribed by Presidential Decree. ## CHAPTER IX MUTUAL AID ASSOCIATION FOR SUPPLIERS

#### Article 32-2 (Establishment of mutual aid association) (1) A business entity who has entered into a procurement contract with the Public Procurement Service may establish a mutual aid association for suppliers (hereinafter referred to as "mutual aid association") upon obtaining authorization from the Administrator of the Public Procurement Service to promote autonomous economic activities and to provide various guarantees, loans, etc. related to procurement services through a cooperative organization among business entities. (2) The mutual aid association shall be a corporation and shall be established by registering its establishment at the seat of its principal office. (3) The original property of the mutual aid association shall be raised from the contributions from its members, earnings, and other financial resources prescribed by Presidential Decree. (4) Matters necessary for the standards and procedures for authorizing the establishment of the mutual aid association, matters to be stated in the articles of association, operation, supervision, etc. of the mutual aid association shall be prescribed by Presidential Decree. (5) Qualifications for members of the mutual aid association, matters concerning its executive officers, and the standards for the allotment of contributions shall be stipulated by its articles of association. [This Article Added on Jan. 2, 2024]

#### Article 32-3 (Programs of mutual aid association) (1) The mutual aid association shall conduct the following programs related to procurement services: 1. Guarantee of tendering, contracting, subcontracting, repair of defects, etc. following a member's performance of duties; 2. Loans of funds to members; 3. Mutual-aid business guaranteeing the liability for damages incurred by a member in performing his or her duties; 4. Mutual aid programs for improving the welfare of persons employed by members and compensating for losses incurred from occupational accidents; 5. Programs regarding consultation, diagnosis, guidance, education, and training of members; 6. Business affairs entrusted by the State, local governments, public institutions, etc.; 7. Other programs prescribed by Presidential Decree as necessary for establishing order in transactions related to procurement contracts, as prescribed by Presidential Decree. (2) If a mutual aid association intends to provide guarantee services under paragraph (1)1 and mutual aid services under subparagraphs 3 and 4 of that paragraph, it shall formulate provisions regarding guarantee and mutual aid, including the following matters, and obtain approval from the Administrator of the Public Procurement Service; and the same shall also apply to any modification to approved matters: 1. Guarantee regulations: Matters necessary for operating guarantee services, such as the scope of guarantee services, details of contracts, fees, liability reserves, etc.; 2. Mutual aid regulations: Matters necessary for the operation of mutual aid programs, such as the scope of mutual aid programs, details of mutual aid contracts, mutual aid fees, mutual aid benefits, and the liability reserves for mutual aid benefits. [This Article Added on Jan. 2, 2024]

#### Article 32-4 (Reporting and investigation) (1) If the Administrator of the Public Procurement Service deems it necessary to maintain the financial soundness of a mutual aid association, he or she may require the mutual aid association to report matters regarding its business affairs or to submit data, or may require public officials under his or her jurisdiction to investigate the status of business affairs or accounting of the mutual aid association or to inspect books or other documents. In such cases, a public official who conducts an investigation or inspection shall carry identification verifying his or her authority and present it to relevant persons. (2) The Administrator of the Public Procurement Service shall determine and publicly notify standards necessary for the supervision of guarantee business for the sound development of guarantee business and the protection of contractors under Article 32-3(1). (3) The Financial Services Commission may conduct an investigation or inspection under paragraph (1) on the mutual aid business under Article 32-3(1)3 and 4, as prescribed by Presidential Decree. (4) The Administrator of the Public Procurement Service shall determine and publicly notify the standards necessary for supervision in consultation with the Chairperson of the Financial Services Commission in order to ensure the sound development of mutual aid business and the protection of subscribers under Article 32-3(1)3 and 4. [This Article Added on Jan. 2, 2024]

#### Article 32-5 (Application mutatis mutandis of other statutes) The provisions regarding incorporated associations in the Civil Act and the provisions regarding the accounting of stock companies in the Commercial Act shall apply mutatis mutandis to matters not prescribed by this Act in relation to mutual aid associations. [This Article Added on Jan. 2, 2024] ## CHAPTER X SUPPLEMENTARY PROVISIONS

#### Article 33 (Entrustment of facility management) (1) If deemed necessary to perform public procurement services, the Administrator of the Public Procurement Service may entrust some of the affairs to another administrative agency or a legal entity, organization, or individual with the management and operation of the warehouses, container yards, and other facilities belonging to the special account for procurement, services specified in the subparagraphs of Article 3, affairs specified in the subparagraphs of Article 18(1) and in Article 19(1) and 20, as prescribed by Presidential Decree; provided, when he or she entrusts any affairs specified in Article 18(1)2, 19(1), or 20, he or she shall entrust such affairs to a laboratory accredited under Article 23 of the Framework Act on National Standards or any other statute. (2) The Administrator of the Public Procurement Service or any administrative agency, legal entity, organization, or individual that has been entrusted with affairs under paragraph (1) (hereinafter referred to as "entrusted institution") may keep and manage commodities, other than procurement commodities, in the facilities as a trustee. (3) The Administrator of the Public Procurement Service may wholly or partially subsidize expenses incurred in performing the entrusted affairs under paragraph (1) within budgetary limits of the special account for procurement. (4) An entrusted institution shall keep and preserve records on the execution of the relevant affairs. (5) If necessary, the Administrator of the Public Procurement Service may require an entrusted institution to submit materials relevant to its business or may authorize public officials under his or her jurisdiction to enter a relevant office or place of business and inspect the performance of quality management. (6) If an entrusted institution falls under any of the following subparagraphs, the Administrator of the Public Procurement Service may revoke the entrustment or order its inspection service suspended for a fixed period of one month to one year; provided, in cases falling under subparagraph 1, the entrustment shall be revoked: 1. Where it is entrusted with the affairs by fraud or improper means; 2. Where the head of the institution that is entrusted with the affairs requests the revocation of the entrustment; 3. Where its accreditation as an authorized institution in the field of inspection is wholly revoked by the relevant agency; 4. Where the inspection is conducted by fraud or improper means; 5. Cases where it is unlikely to ensure the reliability or fairness of its service, as determined and publicly notified by the Administrator of the Public Procurement Service. (7) Matters necessary for the entrustment of affairs under paragraph (1), the designation, administration and supervision of entrusted institutions, the suspension of inspection services of entrusted institutions and the revocation of entrustment shall be determined and publicly notified by the Administrator of the Public Procurement Service.

#### Article 34 (Legal fiction as public officials in application of penalty provisions) A person who falls under any of the following subparagraphs shall be deemed a public official for the purposes of Articles 129 through 132 of the Criminal Act: 1. A member, other than a public official, of the Committee or a subcommittee or working committee under Article 5; 2. An executive officer or employee of an entrusted institution who is engaged in affairs entrusted under Article 33.

#### Article 35 (Administrative fines) (1) Any of the following persons shall be subject to an administrative fine not exceeding three million won: 1. A person who fails to keep and preserve relevant records, in violation of Article 33(4), or who keeps and preserves false records; 2. A person who fails to submit materials specified in Article 33(5) or who submits false materials; 3. A person who refuses, interferes with, or evades an inspection under Article 33(5), without good cause. (2) Administrative fines under paragraph (1) shall be imposed and collected by the Administrator of the Public Procurement Service, as prescribed by Presidential Decree. ## ADDENDA <Act No. 16954, Feb. 4, 2020> - Article 1 (Enforcement date) This Act shall enter into force one year after the date of its promulgation. - Articles 2 through 6 Omitted. - Article 7 Omitted. - Article 8 Omitted. ## ADDENDA <Act No. 17153, Mar. 31, 2020> - Article 1 (Enforcement date) This Act shall enter into force six months after the date of its promulgation; provided, Article 4(3) of the Addenda shall enter into force on February 5, 2021. - Article 2 (General transitional measures) Dispositions imposed or other acts done by administrative agencies or various kinds of applications filed with or other acts done in relation to administrative agencies under the former Government Procurement Act, as at the time this Act enters into force, shall be deemed acts done by or in relation to the corresponding administrative agencies under this Act. - Article 3 (Transitional measures concerning administrative fines) For the purpose of applying administrative fines to offenses committed before this Act enters into force, the previous provisions shall prevail. - Article 4 Omitted. - Article 5 (Relationship to other statutes and regulations) At the time this Act enters into force, references in other statutes and regulations to the former Government Procurement Act, if this Act includes any provisions corresponding thereto, shall be deemed references to the corresponding provisions of this Act in lieu of the previous provisions. ## ADDENDUM <Act No. 17339, Jun. 9, 2020> This Act shall enter into force on the date of its promulgation; provided, Article 27 shall enter into force on October 1, 2020. ## ADDENDA <Act No. 17348, Jun. 9, 2020> - Article 1 (Enforcement date) This Act shall enter into force six months after the date of its promulgation. - Articles 2 through 13 Omitted. - Article 14 Omitted. - Article 15 Omitted. ## ADDENDUM <Act No. 19869, Jan. 2, 2024> This Act shall enter into force six months after the date of its promulgation. ## ADDENDUM <Act No. 20407, Mar. 26, 2024> This Act shall enter into force six months after the date of its promulgation. ## ADDENDA <Act No. 21065, Oct. 1, 2025> - Article 1 (Enforcement date) This Act shall enter into force on the date of its promulgation; provided, the amendments to statutes, which are amended under Article 7 of the Addenda and were promulgated before the enforcement of this Act but whose enforcement dates have not yet arrived, shall enter into force on the respective enforcement dates of such statutes, and the amended provisions under the following subparagraphs shall enter into force on the dates specified in the relevant subparagraph: 1. The amended provisions under the following items shall enter into force on January 2, 2026; provided, among the statutes amended in accordance with Article 7 of the Addenda (limited to the parts related to the amended provisions of items a and b), the amendments to statutes that were promulgated before the enforcement date prescribed in the main clause but whose enforcement dates have not yet arrived shall enter into force on the respective enforcement dates of such statutes: a. The amended provisions of Articles 19(4), 23, 29(1)1, and 30; b. The amended provisions of Articles 12(2), 19(3), 22, and 29(2) (limited to the parts relating to the Minister of Finance and Economy and the Ministry of Finance and Economy); c. Statutes amended in accordance with Article 7 of the Addenda (limited to the parts related to the amended provisions of items a and b); 2. Omitted. - Articles 2 through 6 Omitted. - Article 7 Omitted. - Article 8 Omitted. Last updated : - -