SME Sector Says "Low-Price Competition in Procurement Market Must Be Stopped"... Urges Guarantee of Fair Prices
- Input
- 2026-09-16 14:45:03
- Updated
- 2026-09-16 14:45:03
The Korea Federation of SMEs (KBIZ) announced on the 16th that it held a meeting at the KBIZ headquarters in Yeouido, Seoul, inviting Public Procurement Service (PPS) Administrator Baek Seung-bo to discuss current procurement policy issues and measures to improve the system.
Ki-Moon Kim, Chairman of the Korea Federation of SMEs (KBIZ), 20 representatives of small and medium-sized enterprises from major industries, and officials from the Public Procurement Service (PPS) attended the meeting on this day.
The SME sector proposed a total of 23 institutional improvement tasks, including the establishment of a sliding system for single-item manufacturing contracts and guidelines for adjustment applications, raising the threshold amount for the second stage of competition in Multiple Award Schedule (MAS) contracts, supplementary measures following the abolition of MAS contract obligations by local governments, and improvements to the advance payment system.
In particular, voices were raised calling for the system to be overhauled to properly reflect cost fluctuations, such as rising raw material prices, in procurement prices, and to prevent excessive price competition from undermining the profitability and quality competitiveness of small and medium-sized enterprises.
Ki-Moon Kim, Chairman of the Korea Federation of SMEs (KBIZ), stated, "Procurement administration holds great significance in securing a domestic manufacturing base and laying the foundation for the national economy by purchasing goods directly produced by domestic companies." He added, "It is urgent to establish a procurement system that guarantees appropriate prices to prevent excessive price competition from exacerbating the management difficulties of SMEs participating in the procurement market and lowering product quality."
[email protected] Kim Hyun-chul Reporter