Mandatory Use of 'Electronic Procurement System' for Construction Payments Over 50 Million Won

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] From now on, when paying for construction work ordered by public institutions, the use of the electronic procurement system will be mandatory. It is scheduled to be implemented from the 27th.

The government announced on the 19th that the Cabinet meeting approved the revision of the Enforcement Decree of the "Act on the Use and Promotion of Electronic Procurement," which includes this provision.

This revision mandates the use of the electronic procurement system for public procurement contracts to handle the billing and payment of contract amounts in order to prevent issues such as wage arrears and non-payment of subcontracting fees.

The institutions required to use the electronic procurement system include national agencies, local governments, public institutions (excluding other public institutions with a budget scale under 25 billion KRW), local public corporations and foundations under the Local Public Enterprises Act, and local government-invested and supported institutions (excluding institutions not subject to the Local Contract Act).

The target contracts are all construction works with a project scale of 50 million KRW or more and a construction period of 30 days or longer. Small-scale construction works are excluded.

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