PPS finalizes next year's budget at 372.3 billion won, focusing on innovation procurement and public AI transition

[Financial News] The Public Procurement Service (PPS) said on Sept. 1 that it has drawn up its 2027 budget proposal at 372.3 billion won in total spending, up 75 billion won, or 25.2%, from this year.
PPS said it will center next year's budget on strengthening innovation procurement and advancing the use of artificial intelligence in public procurement, channeling funds into key projects.
First, it finalized the budget for the innovation product pilot purchase program, which helps support early market entry by becoming the first buyer of highly innovative products, at 113 billion won, up 30.6 billion won from this year. Of that amount, 13 billion won was newly allocated to projects such as AX-Sprint, a government-wide demonstration initiative for new industrial technologies including AI, robots and drones, to help spread the results of pilot projects. Existing domestic demonstration projects worth 90 billion won and 10.2 billion won in support for research and development of innovation products were also included.
PPS will also speed up AI and digital transformation across the entire public procurement process. To respond proactively to global supply chain disruptions, it will invest 7.7 billion won in building an AI-based supply chain management system that covers the full stockpiling process, from demand forecasting to inventory management. It will also move ahead with a price comparison and monitoring system for real-time public material prices, a 3.9 billion won integrated contract management system for four major government-supplied materials such as ready-mix concrete and asphalt concrete, and a 2.9 billion won integrated public construction cost information platform.
The public procurement market has annual purchasing power of more than 200 trillion won, and it has long been seen as a test bed where the government creates early demand to help new technology companies enter the market. The expanded budget for AI and new technology is expected to provide practical support for Deep Tech ventures and startups that struggle to secure sales channels before proving their products in the private market.
Baek said, "Next year's budget focuses on maximizing the strategic value of public procurement to support both the AI transition and innovation-led growth." He added, "We will actively explain the need for these projects during the National Assembly review process, secure the key budgets, and deliver results that people and businesses can actually feel."
PPS's 2027 budget proposal is scheduled to be finalized in December after review and approval by the National Assembly.
[email protected] Kim Won-joon Reporter