_x000C_eProcurement in Korea: Implementation and Impact

e-Procurement Experience in Korea : Implementation and Impact
June 2012

Ho In Kang |

Administrator Public Procurement Service (PPS), the Republic of Korea

Contents
Ⅰ. Public Procurement in Korea Ⅱ. e-Procurement in Korea Ⅲ. Impact of e-Procurement Ⅳ. Future Goals

Public Procurement in Korea

Public Procurement in Korea
Public Procurement Size
Public Procurement Total (2011) : USD 100 billion (10% of GDP)

Public Procurement Service (PPS)
The government’s central purchasing agency Covers central govt. procurement above threshold
Goods & Services Construction Works above $100,000 above $3,000,000
Individual Agencies $66 bn

Local govt. and public enterprises may use PPS’s procurement services by request

PPS $34 bn

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e-Procurement in Korea

Korea ON-line E-Procurement System
KONEPS (Korea On-line E-Procurement System)
Govt. e-Procurement system operated by PPS
Transactions via KONEPS
Total Public Procurement Public Procurement via KONEPS e-Bay $104 bn

Used by 44,000 public entities* and 228,000 suppliers

$92 bn $77 bn $56 bn $43 bn $76 bn $65.7 bn

One of the largest e-Commerce systems in the world

73% 55% 2004 60% e-Bay e-Bay (2010) (2010)

2007

2010

* Figure accounts for most public entities, except 20 public enterprises that operate independent e-Procurement systems

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e-Procurement in Korea
Single Window to Public Procurement
All tender notices are published through KONEPS

End-to-end Functional Coverage
KONEPS processes the entire procurement procedures through subsystems: e-bidding, e-contracting, e-ordering from online shopping mall and epayment

“KONEPS”
Korea ON-line E-Procurement System

e-Bidding

e-Contracting

e-Payment Online Shopping Mall

e-Ordering

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e-Procurement in Korea
One Stop Service through Data Integration
KONEPS exchanges data with 140 external info systems for supplier information, bid evaluation, bonds and payment, minimizing paper document