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Public procurement now plays a more important role in government than it did in the past because it dramatically increases public confidence in government through a digitalized procurement process and eases the burden of taxpayers by reducing national budgets. Despite such importance of public procurement, our procurement system experienced common problems such as excessive paperwork, labor-intensive work and complicated business processes, which resulted in high costs and low transparency. In this context, PPS initiated the development of KONEPS to respond to changing environments such as the public's growing demand for high service quality, the expansion of e-commerce and the trend towards e-Government.

Overview of Public Procurement in Korea

Combination of centralized and decentralized procurement
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Combination of centralized and decentralized procurement Combination of centralized and decentralized procurement (procurement field and centralized)
Procurement field Centralized Centralized
Goods & Services $100,000 Autonomous
Construction projects $3,000,000 Autonomous except for Turnkey, Alternative Bidding and Construction

Innovation of Public Procurement

Importance of public procurement
  • Eases the burden of taxpayers by reducing the national budget
  • Increases public confidence through a transparent process - Eliminates the possibility of corruption
  • Plays a role in fiscal policy
Response to changing environment
Step-by-step approach to adopting e-procurement
  • Took initial steps for e-procurement of PPS' own business
    • Exchanged e-documents by using EDI and opened e-shopping mall (1997~1999)
    • Provided e-bidding and e-payment service (2000~2001)
  • Launched the Government e-Procurement System (KONEPS) in October 2002
    • A single window for public procurement which digitalized the entire process from order to payment for all public organizations
  • Advanced the KONEPS towards a customer-oriented and ubiquitous system(2004~2005)
    • Tailored information service using CRM, Web-Call center (2004)
    • The mobile Service enabling information search and bidding participation through PDA(2005)
    • ITSM (Information Technology Service Management)(2006)