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Samsung SDS has been selected as a preferred bidder over LG CNS and other rivals to carry out the first stage of a state project to construct a new tax management system for municipal administrations, the company said Friday.
The project, led by the Ministry of the Interior and Safety, is aiming to completely overhaul the existing local tax administrative and payment system for the first time in 13 years.
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| Samsung SDS CEO Hong Won-pyo |
About 17 billion won has been allocated for the first stage of the project.
Once a final contract is signed, the Samsung Group affiliate specializing in software systems and information technology services will redesign existing tax administration processes and establish plans to realize the next-generation e-tax administrative and payment systems through integration with advanced technologies such as big data analytics and artificial intelligence.
"Preparations for the final contract are currently underway," a Samsung SDS official said.
The company that carries out the first stage of the project is highly likely to win the entire project, industry officials said, noting that Samsung SDS is now in an advantageous position.
This will mark the company's first government-led project since it eliminated a business unit in charge of dealing with e-government projects in 2013.
Samsung eliminated the unit as the government revised the Software Industry Promotion Act that year to ban large companies from participating in projects placed by public organizations in a bid to give more opportunities to small- and medium-sized enterprises.
The government lifted the ban for this project as its nationwide scale requires advanced technologies and capabilities.
But the Samsung SDS official said his firm is not planning to revamp the unit in charge of e-government projects, saying other units dealing with relevant technologies will handle the project.
The new local tax management system will allow users, for example, to pay their local taxes by utilizing their smart refrigerators and televisions.
The systems will also be able to offer customized information to each user.
