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INTERVIEWKorean firms eyeing global procurement market

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PPS helps companies overcome procurement barriers


By Yoon Ja-young

The global procurement market with an estimated value of $6 trillion can open up new opportunities for exporters. Korea has many competitive companies as an industrial powerhouse, but they often have trouble advancing into overseas procurement markets due to barriers.

Public Procurement Service (PPS) Administrator Park Chun-sup said that the overseas procurement market will help the country overcome its unemployment problem.

"Job creation is the biggest priority of the current administration. We have been introducing diverse ideas for job creation, such as giving extra points in bidding for government procurement to businesses that create more jobs, especially for young people," he said in an interview with The Korea Times in Daejeon, Aug. 28.

After serving in key posts at the finance ministry, including deputy minister in charge of the budget office, he was inaugurated as the PPS administrator in July last year.

While pondering how his organization could contribute to job creation, he concluded that it should turn to overseas procurement markets.

The PPS thus set up a taskforce to help local companies, which had their competitive edge proven in the domestic procurement market, in their advancement overseas.
Park Chun-sup, Public Procurement Service Administrator
Park Chun-sup, Public Procurement Service Administrator

It includes matching Korean companies with local buyers so that it can overcome barriers. PPS also signed an MOU with the Korea Trade-Investment Promotion Agency (KOTRA) and is scheduled to sign one with the Korea International Cooperation Agency (KOICA).

"When Korea provides official development assistance (ODA) to developing countries, building a hospital for them for instance, Korean companies can also participate in the bidding to join the project," Park said.

The PPS also signed an MOU with the International Trade Center based in Switzerland, which provides information on public procurement bidding in 192 countries. Korean companies can get the information for free via the PPS.

The PPS is also getting favorable response from businesses eyeing overseas markets by offering documents in English - when bidding in markets overseas, businesses are required to submit supply records.

Previously, they had to translate the documents issued by the PPS into English and get authentication. From July, the PPS started issuing the documents in English, alleviating that burden and its cost.

Procurement service for Fourth Industrial Revolution

Park agrees with experts that the future of the national economy will be determined by how quickly and effectively the country accommodates the Fourth Industrial Revolution.

Businesses are launching many products based on new technologies or convergence, but it isn't easy for them to advance into the procurement market on time. The PPS has thus introduced fast tracks for innovative new products. He took drones as an example.

"Drones for observation of weather, for instance, need special features since they fly at an altitude of 2 kilometers where it is extremely windy," he said.

Drone companies, however, have not ventured to develop such special drones since it isn't certain whether they can sell them later after spending a lot on research and development.

The PPS thus worked with the science and ICT ministry, linking R&D with procurement. A drone company was put in charge of developing the special drone for the Korea Meteorological Administration, without having to worry about seeking clients later since it knows its products are set to be purchased by the weather agency.

PPS also works as test bed for innovative products.

"Even if businesses launch new products based on new technologies, ministries or state-run enterprises can't purchase them immediately since their quality has not been confirmed. The PPS is spending part of its budget to purchase such innovative products before commercialization and test them with the potential clients. If they prove to be good, the client ministries can purchase them without concern," Park said.

Since his appointment, Park has been focusing on improving communication, both within the PPS and with clients.

"I think communication is like blood vessels for people. Just like good blood circulation is necessary for health, communication is essential to make any organization sound and raise its productivity."

Taking into account that it isn't easy for government officials to freely present their thoughts, he introduced an anonymous bulletin board within the PPS.

It prompted officials to actively suggest ideas, which helped improve the organization. He also opened an anonymous bulletin board at the Korea On-Line E-Procurement System so that clients such as other ministries and state-run enterprises as well as businesses could freely convey their ideas.

Thanks to such efforts, the PPS was rated as "excellent" last year in the evaluation of government ministries and agencies.

He also has been frequently holding meetings with businesses in diverse regions around the country to listen to their suggestions and to find out how the PPS can help them.

In Gangwon Province, for instance, he met medical equipment companies operating in the Wonju healthcare cluster, firefighting equipment companies in Incheon, and energy businesses in South Jeolla Province where KEPCO is located.

"I had been setting up economic policies at the finance ministry, but it takes some time to see such policies work. The job at the PPS is attractive as we can immediately execute policies and see direct positive impacts on businesses," Park said.


Yoon Ja-young yjy@koreatimes.co.kr


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