Public Procurement Service Expands Mandatory Origin Labeling for Parts... "Encouraging Localization"

The Public Procurement Service (PPS) will expand the scope of products and components subject to mandatory country of origin labeling in the Nara Marketplace comprehensive shopping mall.

On the 25th, PPS announced that it will partially amend the "National Comprehensive Electronic Procurement System Comprehensive Shopping Mall Operation Regulations" to include this content.

The amendment to the operation regulations was made with the intention of promoting the localization of competitive parts among small and medium enterprises by requiring mandatory labeling of the country of origin of components when registering eight designated products in the Nara Marketplace, as designated by the Ministry of SMEs and Startups.

The products targeted for parts localization are eight types: ▲3D printers ▲drones ▲LED indoor lighting ▲remote automatic meter reading systems ▲interactive whiteboards ▲video information display devices ▲pedestrian signal voice guidance auxiliary devices ▲video surveillance devices.

Through the amendment, PPS will proactively ensure the quality of procured goods and respond to violations of country of origin labeling by additionally designating 10 products subject to special provisions on the method of country of origin indication, requiring mandatory labeling of components that may affect product quality and price management.

The additionally designated products are 10 types: ▲tile insulation panels ▲stone insulation panels ▲cork flooring materials ▲PVDF membrane structures ▲PVF membrane structures ▲PTEF membrane structures ▲other membrane structures ▲ETFE membrane structures ▲solar power generation devices ▲building-integrated solar power generation devices.

The special provision system for the method of country of origin indication requires additional labeling not only of the product’s origin but also of the origin of core and major components. Demand agencies can check the country of origin of products and components on the comprehensive shopping mall registration screen. PPS expects this to promote the purchase of domestic products and the use of domestic components.

Kwon Hyuk-jae, Director of the Purchasing Business Bureau at PPS, said, “Expanding the mandatory labeling of component country of origin for products registered in Nara Marketplace will support the purchasing decision-making of demand agencies by providing necessary origin information at the time of purchase, and will enhance trust in the quality and price of public goods.” He added, “For procurement companies, it is expected to act as a catalyst that induces technological development competition within the same industry and the use of domestic components.”