"K-E-Procurement to Become the Asia-Pacific Standard"... Public Procurement Service (PPS) Shares AI Procurement at APPeN General Assembly

[Financial News] South Korea's advanced electronic procurement system and its AI- and big-data-based model for developing intelligent procurement have drawn attention from countries across the Asia-Pacific region.
 The PPS said on the 6th that it attended the 11th APPeN General Assembly, held over two days on the 5th and 6th of this month in Thimphu, Bhutan, and shared Korea's experience in electronic procurement innovation and its future development direction.
 APPeN is a regional electronic procurement cooperation body launched jointly by the PPS and the Asian Development Bank (ADB) in 2015 to promote e-procurement across the Asia-Pacific region and improve transparency and efficiency.
 The assembly, co-hosted by the ADB and the Government of the Kingdom of Bhutan, brought together procurement officials and representatives of international organizations from around 40 Asia-Pacific countries. Participants held in-depth discussions on three key agendas: enhancing electronic procurement systems through AI and data, sustainable procurement, and strengthening the expertise of procurement officials.
 At the assembly, the PPS showcased the development of Next-Generation KONEPS, which applies new technologies including AI, big data, and cloud computing. It provided a detailed account of the bold reform process that integrated procurement systems and data previously dispersed among individual agencies into a single platform. The PPS also shared the trial and error encountered during the early stages of system enhancement and the know-how used to overcome those challenges. The initiative was viewed as providing a practical roadmap for member countries pursuing the development or advancement of electronic procurement systems.
 In fact, the number of member countries that had adopted electronic procurement, which stood at only around 10 when APPeN was launched, has expanded to most member countries thanks to the continued support of the PPS and ADB. The digital transformation of procurement across the Asia-Pacific region is accelerating.
 In his keynote speech, PPS Deputy Administrator Kang Seong-min said, "Electronic procurement must now evolve into intelligent procurement that uses data and AI to forecast procurement demand in advance and identify anomalies at an early stage." He added, "As technology advances, the expertise of procurement officials who make decisions based on the principles of fairness and transparency will become even more important."
 The results of this assembly are expected to go beyond simple technology transfer and serve as a springboard for leading South Korean information technology and software companies to enter the Asia-Pacific public procurement market. If the Next-Generation KONEPS model becomes established as standard electronic procurement infrastructure across the region, it could create a virtuous cycle by expanding overseas contract opportunities for South Korean ICT companies that participated in building the system.
 The PPS also plans to build on its annual cooperation projects with the ADB to operate customized training programs for procurement officials in the Asia-Pacific region. It will also explore ODA-linked overseas exports of intelligent procurement solutions, including AI algorithms for detecting ineligible contractors.

[email protected] Kim Won-jun Reporter