Allowing Direct Contracts for Cloud in Public Sector... Establishment of Review Committee

President Moon Jae-in is speaking at the video Cabinet meeting held at the Yeomin Hall of the Blue House on the 22nd. (Photo by Yonhap News)

[Asia Economy Reporter Kwangho Lee] From now on, public sector cloud services will establish a separate review committee to expedite contract procedures and allow private contracts. In addition, companies facing financial difficulties can receive employment retention subsidies from the government if they implement unpaid leave for just 30 days. It will also become possible to establish a 'Heterogeneous Cooperative Federation' where cooperatives, social cooperatives, consumer life cooperatives, and credit cooperatives participate as mutual members.

On the 22nd, the government held a Cabinet meeting presided over by President Moon Jae-in at the Blue House, deliberating and resolving seven bills, 33 presidential decree drafts, and three general agenda items containing these contents.

First, the amendment to the enforcement decree for introducing the Digital Service Specialized Contract System will take effect on the 1st of next month. The enforcement decree defines digital services as cloud computing services and cloud computing support services, as well as services that combine intelligent information technologies such as artificial intelligence (AI), Internet of Things (IoT), and blockchain with cloud computing. Furthermore, a 'Digital Service Review Committee' composed of public officials from related ministries including the Ministry of Science and ICT, Ministry of Economy and Finance, Ministry of the Interior and Safety, and Public Procurement Service, along with private experts, will be formed to promptly select the list of digital services subject to public contracts.

The enforcement decree also allows private contracts when local governments or public institutions in the public sector introduce cloud services, and newly establishes a catalog contract method that enables demand institutions to flexibly change contract conditions as desired. The Public Procurement Service will review the appropriateness of the service provider’s catalog regarding product functions, features, and prices to conclude contracts, and demand institutions can decide on suppliers after evaluating proposals.

At the Cabinet meeting, the amendment to the Enforcement Decree of the Employment Insurance Act was also approved, relaxing the conditions for payment of employment retention subsidies for unpaid leave from 'implementation of unpaid leave for 90 days or more' to 'implementation of unpaid leave for 30 days or more.'

Additionally, with the approval of the amendment to the 'Enforcement Decree of the Framework Act on Cooperatives,' cooperatives that disclose management information and have a debt ratio of 200% or less will be able to raise funds through preferred stock issuance. Cooperatives of different types can form federations and establish solidarity among cooperatives. The establishment requirements are that the federation must consist of five or more members from cooperatives, social cooperatives, credit unions, consumer life cooperatives, etc., as defined by the Framework Act on Cooperatives.

During the meeting, the 'Enforcement Decree of the State Property Act,' which includes plans to expand living social overhead capital (living SOC) that can enhance the convenience of citizens in daily life such as cultural and sports facilities, was also processed. Living SOC refers to essential infrastructure for daily life such as public libraries, community sports facilities, daycare centers, kindergartens, and after-school care centers.

Moreover, the '2020 General Account Contingency Reserve Expenditure Plan' to support recovery from damage caused by the concentrated heavy rains nationwide in July and August was also approved. The support fund totals 3.4277 trillion won, combining 2.5268 trillion won in national funds and 900.9 billion won in local funds.

President Moon, who presided over the Cabinet meeting via video at the Blue House, said, "If the 4th supplementary budget passes in the National Assembly today, the government will immediately begin execution so that most of the support can be completed before Chuseok." President Moon added, "The government has made thorough preparations to ensure the supplementary budget is executed swiftly."