2026.10.28. The Fair Economy — When a contractor under a third-party unit price contract signed by the Public Procurement Service delivers innovative products to a demand agency by means other than the third-party unit price contract, and the products fail an accredited agency inspection or are found to be below specification, the contractor must notify the Public Procurement Service of the fact within seven days of receiving the notice and undergo an inspection by the Public Procurement Service or a specialized agency. Violating this obligation may result in a suspension of transactions on the KONEPS shopping mall.
The Public Procurement Service announced on the 28th an administrative notice of the proposed amendment to the 'Additional Special Conditions for Third-Party Unit Price Contracts for Innovative Products'.
Under the amendment, if a contract item is delivered to a demand agency by means other than the third-party unit price contract and fails an accredited agency inspection or is found to be below specification, the contractor must notify the contract officer within seven days of receiving the notice from the accredited agency. Within seven days of the notification, the contractor must undergo an inspection by the Public Procurement Service or a specialized agency for the item, regardless of the accumulated delivery request amount. All costs incurred in this process are borne by the contractor.
If a contractor violates the obligation to notify on quality control or the obligation to undergo inspection, the responsible contracting official may impose a trading suspension measure under Article 25, Paragraph 1, Item 1 of the Enforcement Decree of the Procurement Act, taking into account the nature of the violation. The amendment is scheduled to take effect on December 1, 2026, following the public notice period.
A July report by the National Assembly Budget Office pointed out that despite outward growth, performance management in innovative product procurement projects remains lax. Approximately 30.3% of designated products did not have replacement products properly designated after their designation period expired, and pilot purchases were made for only 39.1% of all products. Among the 907 innovative products subject to pilot purchases between 2019 and 2024, 232 (25.5%) had no follow-up public purchases as of August 2026.
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