Gov't to prioritize companies outside greater Seoul in awarding state contracts

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 Ministry of Finance and Economy said Tuesday.

The ministry issued an advance legislative notice of revisions to the enforcement decree of the Act on Contracts to Which the State is a Party to gather public opinion through the end of August, with the goal of implementing the revisions in November.

"The revisions aim to strengthen support for companies based outside the Seoul metropolitan area to address regional disparities caused by the concentration in the capital region," the ministry said.

Under the revisions, when bidders receive the same scores in price and capability evaluations, priority will be given first to companies based in regions with a population decline, followed by other areas located outside the Seoul metropolitan area.

The amendments also raise the ceiling for sole-source contracts for research equipment used in government-funded research and development projects to 50 million won ($33,800) from the current 20 million won.

The government will also deny exemptions from bid security deposits to bidders suspected of lacking the qualifications or capability to perform contracts, including paper companies, in an effort to promote fair competition.

Yonhap