OECD Public Governance Reviews

2219-0414 (online)
2219-0406 (print)
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This series includes international studies and country-specific reviews of government efforts to make the public sector more efficient, effective, innovative and responsive to citizens’ needs and expectations. Publications in this series look at topics such as open government, preventing corruption and promoting integrity in the public service, risk management, illicit trade, audit institutions, and civil service reform. Country-specific reviews assess a public administration’s ability to achieve government objectives and preparedness to address current and future challenges. In analysing how a country's public administration works, reviews focus on cross-departmental co-operation, the relationships between levels of government and with citizens and businesses, innovation and quality of public services, and the impact of information technology on the work of government and its interaction with businesses and citizens.


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The Korean Public Procurement Service

The Korean Public Procurement Service

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15 Jan 2016
9789264249431 (PDF) ;9789264249417(print)

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This report on the Public Procurement Service of Korea examines the effectiveness of its system, identifying good practices that can inspire reform efforts in other countries. In particular, the report highlights the efficiency gains achieved by implementation of a comprehensive e-procurement system and the savings generated by an integrated support for government-wide contracts. It also looks at how Korea is adopting a strategic and multi-dimensional approach to using public procurement in the support of small businesses and other social objectives. In identifying possible improvements to Korea’s system, recommendations include a more centralised look at workforce training and development issues and additional features for Korea’s e-procurement system, as well as a review of existing certification and preference programs.

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  • Foreword and Acknowledgements

    Public procurement represents a significant share of countries’ economies, on average over 13% of GDP among OECD members. For many years, the OECD has assisted governments in reforming their public procurement systems through sharing international good practices, comparative data and conducting peer reviews at the national, sectorial and institutional level. Focus on public procurement has expanded from initial efforts on enhancing integrity to an overarching view of strategic public procurement as an essential mechanism for achieving government policy objectives, building citizen trust and fostering inclusive growth.

  • Abbreviations and acronyms
  • Executive summary

    Representing EUR 4.3 trillion per year in OECD countries, public procurement is a crucial pillar of strategic governance. As a substantial nexus between the public and private sphere as well as a critical channel for services delivery to citizens, public procurement conducted with integrity, transparency and accountability is essential to developing public trust. With governments facing continued budgetary pressures and demands to "do more with less," focus has increasingly turned to public procurement reform as a means of increasing efficiency and effectiveness for public services delivery.

  • Central purchasing in Korea: The Public Procurement Service

    Established in 1949 as the Provisional Office of Foreign Supply, the Public Procurement Service (PPS) took on its current role as a central procurement agency of Korea in 1961. PPS has a variety of responsibilities related to the purchase and management of resources needed for public administration, all of which are undertaken with a focus on transparent and effective delivery of services while also contributing to savings through consolidation and centralisation as well as furthering economic development in Korea. The present chapter provides an introduction to public procurement in Korea generally, and a more detailed examination of the various roles undertaken by PPS. This includes presentations of the legal authorities that govern public procurement in Korea, the responsibilities and organisation of PPS, and detailed information regarding the scope of public procurement activities.

  • Driving efficiency through e-procurement: KONEPS

    A central responsibility of the Public Procurement Service (PPS) involves management of the Korean ON-line E-Procurement System (KONEPS), which involves both policy and purchasing dimensions. KONEPS processes nearly two-thirds of all public procurement in Korea, and responsibility for the system is undertaken in an integrated and strategic manner, driving continuous improvements for public procurement. Within this context, the present chapter presents an analysis of the e-procurement experience in Korea, centred on the Korea ON-line E-Procurement System (KONEPS). As an integrated system developed over many years, KONEPS offers many lessons for countries considering the development or expansion of e-procurement tools and systems. By examining the history, functions and capacities of KONEPS, these good practices are identified, as are recommendations and considerations for additional improvements.

  • Supporting competition and savings through framework agreements: Multiple Award Schedule contracts

    An important mandate for the Public Procurement Service (PPS) involves the operation of framework agreements – contracts containing set terms from which individual orders can then be placed. Framework agreements are an important driver of efficiency in public procurement, allowing for reduced administrative duplication as well as potential savings from centralised purchasing. This chapter presents the PPS implementation of the Multiple Award Schedules (MAS) system of framework agreements, including a detailed look at their current function and future directions.

  • Social integration: PPS implementation of secondary policy objectives

    Korea utilises public procurement to support the furtherance of policy objectives through a broad and complex array of support mechanisms. These are primarily implemented by the Public Procurement Service (PPS) with support from other relevant ministries. This chapter presents an analysis of the use of public procurement to foster secondary policy objectives in Korea in three primary areas: support for particular types of enterprises, innovation and support for green public procurement.

  • MAS contracted goods and services
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