2024.09.10. The Fair Economy — The Public Procurement Service announced on the 9th that it has set its 2025 budget proposal at 326.6 billion won, a 4.5% increase from the 2024 budget of 312.5 billion won.
This budget is what the Public Procurement Service, a special account agency, actually executes, excluding transactions between accounts and between accounting categories due to the separation of profit and loss accounts and capital accounts, and includes 'total expenditure' and 'revolving fund transfers'.
Next year's Public Procurement Service budget will focus on ▲supporting dynamic innovative growth ▲responding to supply chain crises ▲advancing public procurement infrastructure, to achieve a 'vibrant and dynamic procurement market' and 'public procurement faithful to principles and fundamentals'.
The budget for public purchases of innovative products to support dynamic innovative growth will be expanded.
The total budget for public purchases of innovative products, which aims to have the public sector act as the first buyer of innovative products to drive technological advancement and provide high-quality public services, has been set at 61.4 billion won, an increase of 3.6 billion won from this year.
The budget for overseas field trials, which are in high demand on the ground and have significant export-linked results, will be expanded to 14 billion won, an increase of 7 billion won from this year. Additionally, a pilot purchase budget of 3.5 billion won has been included for the first time to test high-priced and advanced equipment through newly introduced rental and subscription methods, in addition to conventional purchasing methods.
Furthermore, the research and development (R&D) budget for the technological development of innovative products has been allocated at 3 billion won, an increase of 1.2 billion won from this year. A 700 million won budget for Official Development Assistance (ODA) for innovative products targeting developing countries such as the Philippines has also been included. These measures strengthen support to help innovative procurement companies grow solidly through overseas market entry and other initiatives.
Raw material reserve capabilities and infrastructure will be significantly expanded to prepare for supply chain crises.
An additional 70 billion won in raw material reserve funds has been allocated to proactively prepare for instability in the raw material supply chain. This will expand non-ferrous metal reserves from 53 days' worth by the end of this year to 55 days' worth in 2025. In addition, a 10 billion won emergency procurement fund for economic security items has been allocated for the first time to prepare for contingencies.
A 500 million won budget (design costs for 2025, totaling 12.1 billion won over three years) has been included for the construction of a new Gyeongnam Reserve Warehouse with an area of 6,000 square meters. A 1.2 billion won budget has also been allocated to strengthen security at reserve bases designated as national important facilities. The total infrastructure expansion budget for the stable storage of reserve materials has been set at 2.8 billion won, an increase of 2.6 billion won from this year.
Investment will be expanded to advance public procurement infrastructure and capabilities.
A 1.4 billion won PPS ODA budget (totaling 10.2 billion won over four years) has been allocated for the 10th export of 'KONEPS,' the electronic procurement system. Additionally, 23 personnel have been added to support swift and fair contract operations.
PPS Director Lim Gi-geun stated, "Through the 2025 budget, we will faithfully implement key PPS policies such as supporting the growth of innovative companies and responding to supply chain crises. As a 'partner for small, medium, venture, and innovative enterprises,' we will create a vibrant and dynamic procurement market. By continuously implementing policies to realize public procurement faithful to principles and fundamentals through 'Back to the Basic,' we will actively support national livelihood vitality and future leaps by utilizing public purchasing power."
The Public Procurement Service's 2025 budget proposal is expected to be finalized in December after review by the National Assembly.
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