Under the central procurement system, the first and foremost aim of domestic procurement is to ensure that the government's needs are met in a cost effective manner, and to help government agencies perform well and manage efficiently by supplying quality products in a timely manner. The magnitude of the Government's outlay on procurement, which annually runs into billions of dollars, creates opportunities for implementing selected national policies. The Procurement Bureau has endeavored to improve the quality of procured goods and achieve socio-economic objectives in its procurement procedures. To this end, great emphasis is placed on promoting small and medium enterprises which are the backbone of the national economy, and supporting the implementation of national environmental policies.
Since becoming a member of the Agreement on Government Procurement (GPA), procurements valued above the threshold specified in the Agreement have been conducted on an internationally competitive basis from January 1, 1997.
The major items which fall into this category are ready-mixed concrete, steel bars, cement, vehicles, OA equipment, and communications equipment.
Domestic supplies procured for Government use are classified into two categories：total amount contracts and uni-price contracts. The procurement procedures are as follows：
The Agreement on Government Procurement is a trade agreement signed by 22 WTO-member nations in Marrakesh, Morocco on April 15, 1994 and became effective January 1, 1996, except in the case of Korea, where it became effective January 1, 1997 after a year's grace period.
Details are available at : www.fta.go.kr
The Agreement on Government Procurement is applied only to those nations that agreed to the Agreement. It authorizes PPS to provide national treatment for the nationals of each nation to access to their own market. It further makes it a rule to enter through international open competition for tenders to secure higher validity of the authorization. In more detail, such tables of authorization for each country are attached to the Agreement. The Agreement also stipulates detailed provisions on procedure (including the notice of a tender, the opening a tender and the selection of a successful bidder) for higher transparency and fairness for supply by each authorized office in accordance with international competitive tender. The contents of the Agreement can be summarized as follows
|* Central government office : W250 million(estimated)||Estimated amount means budget amount minus value-added tax and fees for supply.|
|* Local autonomous bodies : W380 million (estimated)|
|* Government-invested institutions : W850 million(estimated)|