Lowering the Entry Barriers for Startup Companies in the Public Procurement Market

Operation of Public Procurement Promotion Program and Promotion of Related Legal Amendments

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Lee Young, hereinafter referred to as the Ministry) and the Korea Institute of Startup & Entrepreneurship Development (President Kim Yong-moon, hereinafter referred to as Kised) announced on the 5th that they will hold the '1st Startup Company Product Purchase Consultation Meeting' at the aT Center in Seoul, with the participation of 37 public institutions and 57 startup companies. Considering the situation where public institutions want to purchase products from startup companies but find it difficult to locate them and have trouble trusting the startups or their products, they arranged a meeting place between startup companies and public institutions.

Kised conducted a survey in advance on the goods and services that public institutions intend to purchase and selected suitable startup companies to participate, ensuring an efficient purchase consultation meeting. The Ministry and Kised plan to hold another purchase consultation meeting in the second half of this year. As a side event of the purchase consultation meeting, mentoring will be operated to strengthen the capabilities of startup companies to enter the public procurement market, involving 30 experts in five fields such as new technology and performance certification, and 150 startup companies.

The Ministry also plans to revise the 'Enforcement Decree of the Act on Promotion of Purchase and Sales Support for Small and Medium Enterprises' to clarify that limited competitive bidding among startup companies is possible, so that the 'Public Institution Priority Purchase System for Startup Company Products,' which began last year, can be established as soon as possible. Kim Juhwa, head of the Startup Policy Division at the Ministry, said, "We plan to prepare more diverse venues besides the purchase consultation meeting so that public institutions can access innovative startup company products through various channels," adding, "To quickly correct misunderstandings in the field regarding limited competitive bidding, we will conduct comprehensive publicity targeting 856 public institutions and revise the enforcement decree soon to resolve uncertainties."