Basis for sole sourcing innovative products

The following cases when objective and nature of contracts suggest that contracting based on competitive bidding is inefficient
G. When procuring innovative products in accordance with Clause 1, Article 27 of Act on Procurement Business

※ Article 26, Enforcement Ordinance of Act on Contracts Signed with the Government, Oct. 1st, 2020

Promotion of purchasing innovative products

Heads of public organizations should exert efforts to review purchasing innovative products as a priority when signing procurement contracts.
Minister of Economy and Finance may check purchase records in order to purchase more innovative products.

※ Article 4,5, Regulation on Designation of Innovative Products and Promotion of Purchase by Ministry of Economy and Finance, Mar. 8th 2021

Purchase of products developed with SMEs’ technologies as a priority

Develop necessary support measures for SMEs including priority purchase in order to create demand for products developed with SMEs’ technologies
Priority purchase from certain SMEs designated by public organizations or by Presidential degree in order to increase purchase of products developed with SMEs’ technologies
Demand necessary measures(government-invested organization, education institutions, etc.)

※ Act to Support Sales Channels of SMEs’ Products, Jun. 9th 2021

Designation of technologically developed products subject to priority purchase and purchase ratio

Designation of technologically developed products subject to priority purchase

• Products certified for performance in accordance with Clause 1, Article 15 of the Act
• Products designated as outstanding procurement items as per Clause 1, Article 30 of Enforcement Ordinance of Act on Procurement Business
• Products certified as a new product as per Clause 1, Article 16 of Act on the Promotion of Industrial Technology and Innovation
• Software certified for quality as per Clause 1, Article 20 of Act on Software Promotion
• Products designated upon discussions between Minister of SMEs and Startups and heads of other related government ministries
  Target purchase ratio of technologically developed products subject to advanced purchase → more than 15% of purchase amount of goods from SMEs

※ Enforcement Ordinance of Act on Sales Support Channels for SMEs’ Products, Feb. 5th 2021

Technologically developed products subject to priority purchase(products under the foregoing Clause 5)

Products utilizing new technologies, new products that have been successfully developed and under the condition of purchase, green certified products, products designated with outstanding procurement trademark, products developed with SMEs’ convergent technologies, products designated as commercial, convergent items
Products selected for joint R&D with SMEs, products subject to technological development and sharing of achievements, ICT convergent quality certified products, outstanding industrial design products, innovative products, outstanding equipment in water industry

※ Article 3, enforcement rules on priority purchase program operation for products developed with SME technologies, Mar. 5th 2021