Twenty-six main public establishments, together with Korea Electrical Energy Corp., will execute 69 trillion gained in investments this 12 months, a rise of three trillion gained from the initially deliberate 66 trillion gained. In response, the federal government has additionally determined to considerably overhaul the nationwide contract and public procurement programs to boost native autonomy and inject vitality into regional economies.
Deputy Prime Minister and Minister of Economic system and Finance Koo Yun-cheol mentioned on the financial ministers’ assembly held on the Sejong Authorities Advanced on Nov. 19, “Our economic system’s restoration development has been changing into more and more clear not too long ago,” including, “We’ll totally handle funds in order that they’ll function a strong basis for the economic system with out loosening our vigilance till the tip of the 12 months.” He continued, “The federal government has supported financial restoration by means of energetic fiscal administration, together with supplementary budgets,” and added, “Central and native governments will work collectively to reduce carryover and non-execution of budgets and guarantee seamless fiscal execution in vital areas.”
The federal government has additionally determined to actively pursue institutional enhancements to unfold the spark of financial restoration, which is lastly exhibiting indicators of life, to regional areas. Koo emphasised, “First, we are going to considerably develop the participation of native development corporations in regional public works tasks,” including, “We purpose to develop native corporations’ annual contract quantities by 3.3 trillion gained and can present higher preferential remedy to native development corporations in development contracts.” Particularly, the plan is to develop regional restricted aggressive bidding, which is presently restricted to native corporations for tasks beneath 8.8 billion gained (public establishment orders) or 10 billion gained (native authorities orders), to tasks beneath 15 billion gained, and to strengthen regional financial contribution evaluations based mostly on native firm participation charges when choosing profitable bidders for complete analysis lowest bid tasks value 10 billion gained or extra. Regional balanced improvement analysis indicators will even be launched for technology-type bidding development tasks, the place native firm participation has not been evaluated beforehand.
Moreover, beginning subsequent 12 months, the obligatory procurement system for Public Procurement Service unit worth contract gadgets will likely be steadily abolished to allow native governments to effectively procure items that match regional circumstances and calls for. That is anticipated to permit native governments to immediately assessment varied merchandise and effectively procure items suited to regional circumstances and calls for. Koo said, “We plan to use this pilot program in Gyeonggi Province and North Jeolla Province subsequent 12 months and develop it to all native governments beginning in 2027,” including, “We’ll help bidding preferences and personal contracts for merchandise with synthetic intelligence (AI) functions and improve modern product procurement scale from the present 1 trillion gained to greater than 2.5 trillion gained by 2030.”
