Gangwon State Expands Local Firms' Participation Opportunities, Makes Series of Visits to Procuring Agencies

【Financial News, Chuncheon—Reporter Kim Ki-seop】Gangwon State has begun working with the local construction industry to visit public procuring agencies in succession and develop practical cooperation measures, following the expansion of the maximum amount allowed for regional-restriction competitive bidding for general construction projects to less than 15 billion won.
According to Gangwon State on the 18th, the state visited the Gangwon Regional Headquarters of Korea Rural Community Corporation on the 14th and the Gangwon Regional Headquarters of Korea Land and Housing Corporation (LH) on the 16th, together with representatives of the local construction industry, to discuss ways to expand contract awards for local firms.
The initiative follows up on the need to expand local firms' participation, which was raised at a July 29 meeting between the governor and the Gangwon Construction Organizations Federation. After the government announced the "Measures to Expand Local Company Participation in Local Public Corporations" last November, the threshold for regional-restriction competitive bidding for general construction projects was raised from less than 8.8 billion won to less than 15 billion won. Evaluations of local firms were also strengthened in qualification reviews and technical proposals-based bidding. Gangwon State is discussing ways to apply these measures according to the characteristics of each procuring agency.
The meeting with Korea Rural Community Corporation focused on ways for local firms to build experience and track records through joint contracting. The corporation introduced cases in which companies based in Gangwon State accumulated track records through joint contracts for smart farm projects and agreed to use related systems to expand participation opportunities in the future. The participants also shared local-material procurement standards and discussed ways to broaden opportunities to use products made by companies in Gangwon State.
The meeting with LH's Gangwon Regional Headquarters began with a discussion of its first-half ordering performance. LH said that local firms account for about 90% of participation by contract value in construction projects, but that participation remains low in services and materials. It agreed to compile and manage the relevant performance data and establish internal targets to increase the use of local companies. LH also agreed to internally review requests to expand split contracting and joint contracting, award additional points to local firms in design and engineering, and separately order impact-assessment services. Gangwon State suggested that LH's internal authority to place orders should also be expanded in line with the broader regional-restriction bidding threshold.
Gangwon State and local construction industry representatives plan to visit the Gangwon Regional Headquarters of Korea National Railway and the Gangwon Facilities Group of the Defence Installation Agency together on the 21st to discuss cooperation in the railway and defense facilities sectors. They also plan to continue consultations through sequential visits to public procuring agencies across Gangwon State.
Lee Jong-gu, director of Gangwon State's Construction and Transportation Bureau, said, "This must not stop at simply listening to opinions; it must lead to actual contract awards and work. For systems or standards that are difficult to resolve at the regional headquarters level, Gangwon State will step in, consult with relevant central government agencies, and fulfill its role in expanding local firms' participation."

[email protected] Kim Ki-seop Reporter