Seoul: South Korea will give preferential treatment to companies based outside the Seoul metropolitan area in state contract bidding in an effort to promote balanced regional development, the finance ministry said Tuesday. The Ministry of Finance and Economy is taking steps to ensure that firms located in less populated regions have an advantage in securing government contracts.
According to Yonhap News Agency, the Ministry of Finance and Economy issued an advance legislative notice of revisions to the enforcement decree of the state contracts act to gather public opinion through the end of August. The ministry aims to implement these revisions in November, as part of a broader strategy to address regional disparities caused by the concentration of economic activity in the capital region.
The revisions will prioritize companies based in regions experiencing population decline when bidders receive the same scores in price and capability evaluations. Companies located in other areas outside the Seoul metropolitan area will also be favored over those within the capital region.
Additionally, the amendments propose to raise the ceiling for sole-source contracts for research equipment used in government-funded research and development projects from 20 million won (US$13,520) to 50 million won (US$33,800). This move is expected to benefit scientific and research institutions across the country by providing more resources for innovation.
Furthermore, the government plans to introduce measures to promote fair competition by denying exemptions from bid security deposits to bidders suspected of lacking the qualifications or capability to perform contracts, including paper companies. This initiative is designed to ensure that only credible and capable firms participate in the bidding process, thus enhancing the integrity and effectiveness of state contracts.