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The Korean Public Procurement Service

Innovating for Effectiveness

image of The Korean Public Procurement Service

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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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.

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