Law Viewer

Back Home

ENFORCEMENT DECREE OF THE GOVERNMENT PROCUREMENT ACT

Presidential Decree No. 14435, Dec. 23, 1994

Amended by Presidential Decree No. 15831, Jul. 9, 1998

Presidential Decree No. 17011, Dec. 5, 2000

Presidential Decree No. 17689, Jul. 30, 2002

Presidential Decree No. 18634, Dec. 31, 2004

Presidential Decree No. 18903, jun. 30, 2005

Presidential Decree No. 19537, jun. 22, 2006

Presidential Decree No. 20720, Feb. 29, 2008

Presidential Decree No. 20947, Jul. 29, 2008

Presidential Decree No. 21248, Jan. 6, 2009

Presidential Decree No. 21593, Jul. 1, 2009

Presidential Decree No. 21700, Aug. 25, 2009

Presidential Decree No. 21834, Nov. 20, 2009

Presidential Decree No. 22087, Mar. 26, 2010

Presidential Decree No. 22342, Aug. 17, 2010

Presidential Decree No. 24398, Mar. 18, 2013

Presidential Decree No. 24728, Sep. 17, 2013

Presidential Decree No. 25077, Jan. 14, 2014

Presidential Decree No. 25680, Nov. 4, 2014

Presidential Decree No. 26429, Jul. 24, 2015

Presidential Decree No. 27037, Mar. 11, 2016

Presidential Decree No. 27401, Jul. 28, 2016

Presidential Decree No. 27751, Dec. 30, 2016

Presidential Decree No. 28186, Jul. 17, 2017

 Article 1 (Purpose)
The purpose of this Decree is to provide the matters delegated from the Government Procurement Act and matters necessary for the enforcement thereof.
[This Article Wholly Amended by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 2 (Extent of Commodities in Demand)
"Commodities prescribed by Presidential Decree" in subparagraph 2 of Article 2 of the Government Procurement Act (hereinafter referred to as the "Act") means the commodities and services (including leases and loans) the Administrator of the Public Procurement Service purchases and supplies both inside and outside of the Republic of Korea.
[This Article Wholly Amended by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 3 (Extent of Stockpiled Commodities)
"Commodities prescribed by Presidential Decree" in subparagraph 3 of Article 2 of the Act means any of the following commodities, which the Minister of Strategy and Finance shall publicly notify after consulting with the heads of relevant central administrative agencies: <Amended by Presidential Decree No. 25680, Nov. 4, 2014>
1. Commodities with high dependence on foreign countries;
2. Commodities indispensible for the stability of the people's livelihoods;
3. Commodities necessary for stable production of commodities for the defense industry in subparagraph 7 of Article 3 of the Defense Acquisition Program Act;
4. Other commodities deemed necessary for emergency measures for the purpose of the price stabilization and the control of supply and demand.
[This Article Wholly Amended by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 4 (Scope of End-User Institutions)
"Institutions prescribed by Presidential Decree" in subparagraph 5 (c) of Article 2 of the Act means institutions in which the State or a local government has invested or financed, or other institutions which are recognized by the Administrator of the Public Procurement Service as end-user institutions after requesting a contract for purchase or supply of commodities in demand or for installation works. <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
[This Article Wholly Amended by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 4-2 (Expenses for Quality Inspection of Commodities to be Procured)
(1) Pursuant to the main sentence of Article 3-4 (2) of the Act, the Administrator of the Public Procurement Service may require a supplier to bear the expenses incurred in supplying and transporting products, excluding expenses for testing and analysis, among expenses incurred in quality inspections: Provided, That if a re-inspection is required as a result of the quality inspection because the products fail to meet standard specifications, the supplier may be required to bear all expenses incurred in testing and inspection, including expenses for testing and analysis. <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
(2) The Administrator of the Public Procurement Service shall determine and publicly notify guidelines, etc., necessary for bearing expenses incurred in quality inspections under paragraph (1).
[This Article Newly Inserted by Presidential Decree No. 24398, Mar. 18, 2013]
 Article 4-3 (Preparation of Procurement Statistics)
(1) "Institutions specified by Presidential Decree" in the former part of Article 3-7 (1) of the Act means the following institutions: <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
1. National and public educational institutions:
(a) National kindergartens and public kindergartens referred to in subparagraphs 1 and 2 of Article 7 of the Early Childhood Education Act;
(b) National schools and public schools referred to in subparagraphs 1 and 2 of Article 3 of the Elementary and Secondary Education Act;
(c) National schools and public schools referred to in Article 3 of the Higher Education Act;
(d) National special educational institutions and public special educational institutions referred to in subparagraph 10 of Article 2 and Article 6 of the Act on Special Education for the Disabled Persons, Etc.;
2. Public institutions designated and publicly notified under Articles 4 through 6 of the Act on the Management of Public Institutions;
3. Local public enterprises referred to in Article 3 (1) of the Local Public Enterprises Act;
6. Other institutions deemed necessary and publicly notified by the Administrator of the Public Procurement Service for understanding the current status of public procurement and formulating and implementing effective procurement policies.
(2) The data that the Administrator of the Public Procurement Service may request a state agency, a local government, or an institution referred to in any subparagraph of paragraph (1) (referring to an end-user institution, in cases of a contract signed by the Administrator of the Public Procurement Service; hereafter referred to as "state agency, etc." in this Article) to provide under the latter part of Article 3-7 (1) of the Act, shall be all data on the results of contracts that the head of a state agency, etc., made on commodities, construction projects, and services and data on each contract, which shall include data on the following matters: <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
1. Matters concerning the conclusion of a contract:
(a) Purposes of the contract;
(b) Subject matters of the contract;
(c) Bidding date and signing date of the contract;
(d) Estimated price or the budget price;
(e) Method of concluding the contract (general competition, limited competition, nominated competition, or non-bid contract, whether any restriction on the area exists, whether a joint contract shall be made under Article 72 (3) of the Enforcement Decree of the Act on Contracts to which the State is a Party);
(f) Name of the opposite contractual party (referring to the name of the corporation, if the opposite party is a corporation);
(g) Quantity or scale of the contract;
(h) Contract amount;
(i) The reasons why the contract is made through nominated competition or as a non-bid contract, if applicable;
2. Matters concerning the amendment of the contract:
(a) Purposes of the contract;
(b) Terms and conditions of the contract before being amended (referring to the quantity or scale of the contract and the contract amount);
(c) Amended terms and conditions of the contract;
(d) Grounds for the amendment of the contract;
3. Other matters deemed necessary and publicly notified by the Administrator of the Public Procurement Service for understanding the current status of public procurement and formulating and implementing effective procurement policies.
(3) Subject matters to be recorded in the statistics on contracts referred to in Article 3-7 (1) of the Act are as follows: <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
1. The overall status of public procurement;
2. The current status of procurement by each institution, from each enterprise, and by each contracting method;
3. Other matters deemed necessary for formulating and implementing procurement policies.
(4) The Administrator of the Public Procurement Service shall determine and publicly notify standardized guidelines, forms, etc., for preparing and submitting data by state agencies, etc. pursuant to Article 3-7 (2) of the Act. <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
(5) Upon receipt of a request to provide data pursuant to Article 3-7 (2) of the Act, a state agency, etc., shall prepare and submit the data referred to in paragraph (2) for each month through the information processing system designated by the Administrator of the Public Procurement Service by not later than the end of the following month. <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
(6) Except as otherwise expressly provided for in paragraphs (1) through (5), matters necessary for the subject matters to be included in the statistics pursuant to Article 3-7 of the Act and the method and procedure for preparing the statistics, shall be determined and publicly notified by the Administrator of the Public Procurement Service. <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
[This Article Newly Inserted by Presidential Decree No. 25077, Jan. 14, 2014]
 Article 4-4 (Assistance in Entry into Overseas Procurement Markets)
(1) Pursuant to Article 3-8 (1) of the Act, the Administrator of the Public Procurement Service may assist domestic enterprises’ entry into overseas procurement markets by the following methods: <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
1. Providing information on overseas procurement markets and public bidding;
2. Education and training for strengthening domestic enterprises' capabilities to enter into overseas procurement markets;
3. Assistance in programs for necessary for international exchanges, etc., of technologies and human resources relating to procured commodities and services;
4. Assistance in other activities deemed necessary for domestic enterprises' entry into overseas procurement markets.
(2) The Administrator of the Public Procurement Service may fully or partially subsidize the expenses incurred in rendering assistance pursuant to paragraph (1).
[This Article Newly Inserted by Presidential Decree No. 25077, Jan. 14, 2014]
 Article 4-5 (Requests for Providing Data)
Pursuant to Article 3-9 (1) of the Act, the Administrator of the Public Procurement Service may request the Commissioner of the Korea Customs Service to provide declarations on export, import, or return commodities referred to in Article 246 (2) of the Enforcement Decree of the Customs Act. <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
[This Article Newly Inserted by Presidential Decree No. 26429, Jul. 24, 2015]
 Article 5 (Disposition of Bonds and Liquidated Damages)
Bid bonds, performance bonds, and liquidated damages which become vested in the National Treasury as penalties in connection with contracts for the procured commodities and installation works, shall be the revenue of the relevant end-user institution.
[This Article Wholly Amended by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 6 (Transactions of Exchange-Traded Derivatives)
Where the Administrator of the Public Procurement Service deems it necessary for the stable procurement and efficient management of the stockpiled commodities pursuant to Article 4 (1) of the Act, he/she may trade exchange-traded derivatives pursuant to Article 5 (2) of the Financial Investment Services and Capital Markets Act.
[This Article Wholly Amended by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 7 (Special Cases on Method of Contract for Commodities in Demand)
(1) When the Administrator of the Public Procurement Service enters into a contract for manufacture, purchase, processing, etc., of commodities in demand, commonly required by each end-user institution pursuant to Article 5 (1) of the Act, he/she may enter into a contract (hereinafter referred to as "unit price contract for a third party") where he/she determines unit prices in advance and the head of each end-user institution may directly request the supply of the relevant commodities or request the supply and pay the price. <Amended by Presidential Decree No. 22342, Aug. 17, 2010>
(2) When the Administrator of Public Procurement Service has entered into a unit price contract for a third party pursuant to paragraph (1), he/she shall notify end-user institutions of the details thereof.
(3) When the head of an end-user institution has requested for supply or paid the price pursuant to paragraph (1), he/she shall notify the Administrator of the Public Procurement Service of the details thereof.
(4) When the head of an end-user institution procures commodities in demand pursuant to paragraph (1), he/she shall pay fees pursuant to Article 10 to the Administrator of the Public Procurement Service.
(5) Where it is necessary for the stable supply of commodities in demand commonly required by each end-user institution pursuant to Article 5 (1) of the Act, the Administrator of the Public Procurement Service may enter into an ongoing long-term contract. <Amended by Presidential Decree No. 22342, Aug. 17, 2010>
[This Article Wholly Amended by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 7-2 (Contract with Multiple Suppliers)
(1) Where the Administrator of the Public Procurement Service deems it necessary to satisfy the diverse demand of end-user institutions when he/she purchases commodities in demand commonly required by each end-user institution pursuant to Article 5 (1) of the Act, he/she may enter into a contract for supply with at least two persons as parties to a contract (hereinafter referred to as "contract with multiple suppliers") so that each end-user institution may select commodities in demand equal or similar to one another in quality, performance, efficiency, etc. <Amended by Presidential Decree No. 22342, Aug. 17, 2010>
(2) Any person who intends to become a party to a contract with multiple suppliers shall have qualifications for participating in competitive bidding under Article 12 of the Enforcement Decree of the Act on Contracts to which the State is a Party: Provided, That any person who intends to become a party to a contract with multiple suppliers for products in competition among small and medium enterprises under Article 6 of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of their Markets, shall have qualifications for participating in competitive bidding among small and medium enterprises under Article 9 of the Enforcement Decree of the same Act.
(3) Persons who have been decided as successful bidders through price negotiations from among the persons who meet the standards prescribed by the Administrator of the Public Procurement Service in consultation with the Minister of Strategy and Finance, after evaluating the financial status, the records of supply, etc. of bidders, shall be the parties to a contract with multiple suppliers.
(4) Notwithstanding paragraph (3), if deemed necessary pursuant to the nature of contract, successful bidders decided in order of bidders whose ratio of bid amount to the estimated price prepared for each commodity in demand (in cases of a common standard, to prepare one) is lower than others, shall be the parties to a contract.
(5) Where the head of an end-user institution intends to purchase commodities in demand more than the amount determined and announced by the Administrator of the Public Procurement Service from a party to a contract who has entered into a contract with multiple suppliers, he/she shall have at least two contractual parties submit a proposal according to the standards determined by the Administrator of the Public Procurement Service in consultation with the Minister of Strategy and Finance, and determine a person who is to supply the relevant commodities in demand as a result of the examination of the proposal.
(6) In addition to the matters prescribed by paragraphs (1) through (5), matters necessary for procedures for a contract with multiple suppliers shall be determined by the Administrator of the Public Procurement Service in consultation with the Minister of Strategy and Finance.
[This Article Wholly Amended by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 8 (Prequalification for Participation in Bid)
(1) The Administrator of the Public Procurement Service may select the persons eligible to participate in the competitive bidding through prequalification for participation in bid, if necessary for securing quality, when he/she purchases commodities to be procured pursuant to Article 5 (1) of the Act. <Amended by Presidential Decree No. 22342, Aug. 17, 2010>
(2) Where the Administrator of the Public Procurement Service intends to examine qualifications of participants in a bid pursuant to paragraph (1), he/she shall prepare the criteria for examination of qualifications for participation in the relevant bid in advance, and offer them for perusal by participants in a bid prior to bidding.
[This Article Wholly Amended by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 9 (Special Cases on Method of Contracting for Stockpiled Commodities)
(1) When the Administrator of the Public Procurement Service purchases, administers physical distribution of and supplies stockpiled commodities pursuant to Article 5 (1) of the Act, where he/she falls under any of the following subparagraphs, he/she may enter into a private contract, notwithstanding the provisions of other statutes: <Amended by Presidential Decree No. 22342, Aug. 17, 2010>
1. Where he/she enters into a contract for purchase and supply with a person who owns or manufactures commodities not in competition;
2. Where he/she enters into a contract for purchase and supply with a person who owns or manufactures commodities, the difference in prices by region or by quality or the change in prices of which is subject to sharp fluctuations;
3. Where he/she enters into a contract for entrusting purchase and supply with others in cases under subparagraphs 1 and 2;
4. Where he/she enters into a contract for administration of physical distribution and supply with any person who has provided himself/herself with particular facilities or equipment.
(2) Where the Administrator of the Public Procurement Service acknowledges that it is necessary to enter into contracts with two or more other parties having definite qualifications by splitting a large quantity of commodities when purchasing, administering physical distribution and supplying stockpiled commodities pursuant to Article 5 (1) of the Act, notwithstanding the provisions of other sstatutes, he/she may enter into discrete contracts for a limited quantity by method of general competition or nominated competition. <Amended by Presidential Decree No. 22342, Aug. 17, 2010>
(3) When the Administrator of the Public Procurement Service has entered into a contract pursuant to paragraph (1), he/she shall notify the Board of Audit and Inspection of such fact.
[This Article Wholly Amended by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 9-2 (Special Cases on Contract for Products in Competition among Small and Medium Enterprises)
(1) "Scale prescribed by Presidential Decree" in Article 5 (2) of the Act means the amount determined by the Administrator of the Public Procurement Service in consideration of unit prices by product, the purchasing amount of which is not less than two billion won on the basis of the estimated price pursuant to subparagraph 1 of Article 2 of the Enforcement Decree of the Act on Contracts to which the State is a Party.
(2) Pursuant to Article 5 (2) of the Act, the standard products, a contract for procurement for which is allowed through competitive bidding among the joint consuming and supplying groups comprised of small and medium enterprises (hereafter referred to as "competitive bidding among the joint consuming and supplying groups" in this Article) shall meet all of the following requirements and shall be designated and announced officially by the Administrator of the Public Procurement Service in consultation with the Minister of Strategy and Finance (hereafter referred to as "standard products" in this Article):
1. They shall be products, the standards for and quality of which are prescribed by law, such as products designated following the deliberation of the Industrial Standard Council pursuant to Articles 4 and 15 of the Industrial Standardization Act;
2. They shall be products with smaller differences in technology or quality among enterprises;
3. They shall be products that are eligible for competitive bidding among the joint consuming and supplying groups when considering the number of small and medium enterprises, which produce the relevant products;
4. They shall not be products which are apt to hinder the appropriate performance of competitive bidding among the joint consuming and supplying groups owing to unfair trading practices, such as bid rigging pursuant to Article 5 (3) of the Act.
(3) The term of validity of designation pursuant to paragraph (2) shall be two years from the date the products are designated and announced officially.
(4) Where a standard product designated under paragraph (2) falls under any of the following subparagraphs, the Administrator of the Public Procurement Service shall cancel the designation thereof:
1. Where the standard product fails to meet the requirements prescribed by the subparagraphs of paragraph (2);
2. Where the standard product is excluded from the products in competition among small and medium enterprises pursuant to Article 6 of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of their Markets.
(5) In order to participate in competitive bidding in which joint consuming and supplying groups participate, a joint consuming and supplying group shall meet all the following requirements: <Amended by Presidential Decree No. 26248, May 26, 2015>
1. It shall include one or more small businesses in Article 2 (2) of the Framework Act on Small and Medium Enterprises or small and micro businesses in Article 2 of the Act on the Protection of and Support for Micro Enterprises (hereafter referred to as "small businesses or micro businesses" in this Article);
2. All members of a joint consuming and supplying group shall be small and medium enterprises, which have been confirmed to produce the relevant products firsthand pursuant to Article 9 (4) of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of their Markets.
(6) Where an association qualified for participating in competitive bidding among small and medium enterprises pursuant to Article 9 (2) of the Enforcement Decree of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of their Markets intends to participate in competitive bidding among joint consuming and supplying groups, any member who is to perform a contract shall meet all the requirements referred to in the subparagraphs of paragraph (5).
(7) The Administrator of the Public Procurement Service shall examine as to whether the joint consuming and supplying groups have the ability to perform a contract in accordance with the standards for examination determined by him/her in consultation with the Minister of Strategy and Finance and determine a party to a contract to secure the appropriate quality and to stabilize supply prices in competitive bidding among the joint consuming and supplying groups: Provided, That where it is necessary for efficient purchase, etc., he/she may determine a party to a contract in accordance with methods prescribed by the following subparagraphs:
1. A contract with multiple suppliers;
4. Other methods of determining a successful bidder in addition to the examination of the ability to perform a contract prescribed by statutes related to contract, such as the Act on Contracts to which the State is a Party.
(8) When the Administer of the Public Procurement Service determines a party to a contract pursuant to paragraph (7), he/she may give preference to a joint consuming and supplying group, which includes not less than three small enterprises or micro businesses as a joint consuming and supplying group comprised of not less than five small and medium enterprises.
(9) In addition to the matters prescribed by paragraphs (1) and (8), detailed matters necessary for the designation of standard products, formation of a joint consuming and supplying group, determination of a party to a contract, etc. shall be determined and announced officially by the Administrator of the Public Procurement Service in consultation with the Minister of Strategy and Finance.
[This Article Wholly Amended by Presidential Decree No. 22342, Aug. 17, 2010]
 Article 9-3 (Request, etc., for Entering into Contract)
(1) "Standards prescribed by Presidential Decree" in the main sentence of Article 5-2 (1) of the Act means any of the following: <Amended by Presidential Decree No. 25680, Nov. 4, 2014>
1. In cases of a contract by which a State agency purchases commodities in demand, the estimated amount referred to in subparagraph 1 of Article 2 of the Enforcement Decree of the Act on Contracts to which the State is a Party, shall exceed 100 million won (in cases of foreign made commodities, 200 thousand US dollars);
2. Commodities in demand that a State agency or a local government intends to purchase, shall be commodities in demand, for which the Administer of the Public Procurement Service has entered into any of the following contracts:
(a) A unit price contract for a third party;
(b) A contract with multiple suppliers;
3. In cases of a contract for construction works of a State agency, the estimated price referred to in subparagraph 1 of Article 2 of the Enforcement Decree of the Act on Contracts to which the State is a Party, shall exceed three billion won (in cases of specialized works, electrical works, information and communications works, and fire-fighting system installation works, 300 million won);
4. The second contract and subsequent contracts in cases of a long-term continuing contract made by the Administrator of the Public Procurement Service for commodities in demand or a construction project according to the request from the head of the end-user institution;
5. Commodities, the purchase of which shall be requested to the Administrator of the Public Procurement Service or construction projects on which the conclusion of a contract shall be entrusted to the Administrator of the Public Procurement Service, under any other statute.
(2) "Cases prescribed by Presidential Decree" in the proviso to Article 5-2 (1) of the Act mean any of the following cases: <Amended by Presidential Decree No. 24398, Mar. 18, 2013>
1. A natural disaster, urgent event, or other cases where there are reasons corresponding thereto;
2. Cases related to national defense, or where any acts of a State agency shall be done secretly;
3. Where emergency restoration works are carried out due to a disaster or accident;
4. Where the Administrator of the Public Procurement Service delegates purchase of commodities in demand to an end-user institution, as prescribed by Ordinance of the Ministry of Strategy and Finance;
5. Where the head of an end-user institution has consulted with the Administrator of the Public Procurement Service in advance, as special works deemed that the head of an end-user institution is required to enter into a contract for works directly, when considering special characteristics of technology required for construction, supervision, repair of defects, etc.;
6. Services pursuant to Article 2 deemed appropriate that an end-user institution purchases directly.
(3) The head of an end-user institution shall submit a plan for execution of works he/she is to request the Administrator of the Public Procurement Service to enter into a contract in the relevant fiscal year among works under his/her jurisdiction to the Administrator of the Public Procurement Service by January 20 each year, as prescribed by Ordinance of the Ministry of Strategy and Finance: Provided, That with regard to a project for which he/she shall formulate a plan for execution for each project separately, because the budget is compiled in full, he/she shall submit a plan for execution within 20 days after determining a plan of execution of each project.
(4) If deemed necessary, the Administrator of the Public Procurement Service may determine and execute the detailed standards for procedures and post-management of contracts related to commodities in demand and construction works. <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
[This Article Newly Inserted by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 9-4 (Assistance in and Vicarious Execution of Procurement Business)
"Affairs prescribed by Presidential Decree" in the part other than the subparagraphs of Article 5-3 of the Act means the affairs classified as follows:
1. Any of the following affairs among the affairs concerning the procurement of demand commodities related to the software business and projects pertaining thereto under subparagraph 1 of Article 5-3 of the Act (hereafter referred to as "projects, etc." in this subparagraph):
(a) Formulation of plans for projects, etc.;
(b) Award of projects, etc.;
(c) Selection of the implementers of projects, etc., and conclusion of contracts with them;
(d) Management of implementation of projects, etc.;
(e) Post-management of projects, etc.;
(f) Other affairs determined by the head of an end-user institution as requiring assistance or vicarious performance of the Administrator of the Public Procurement Service in connection with projects, etc.;
2. Any of the following affairs among the affairs concerning contracts for facility construction and projects pertaining thereto under subparagraph 2 of Article 5-3 of the Act (hereafter referred to as "facility construction, etc." in this subparagraph):
(a) Deliberation and evaluation on contracts for facility construction, etc., and selection of the implementers thereof;
(b) Management of design services of facility construction, etc.;
(c) Management of implementation of facility construction, etc.;
(d) Post-management of facility construction, etc.;
(e) Examination of cost of facility construction, etc.;
(f) Other affairs determined by the head of an end-user institution as requiring assistance or vicarious conduct of the Administrator of the Public Procurement Service in connection with facility construction, etc.
[This Article Newly Inserted by Presidential Decree No. 27401, Jul. 28, 2016]
<Former Article 9-4 moved to Article 9-5 by Presidential Decree No. 27401, Jul. 28, 2016>
 Article 9-5 (Objects of Payment by Proxy)
(1) "Cases prescribed by Presidential Decree" in Article 5-4 (1) of the Act means any of the following prices for supply of commodities and services that the Administrator of the Public Procurement Service purchases and supplies in the Republic of Korea: <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
2. Prices for supply under a unit price contract for a third party;
3. Prices for supply under a contract with multiple suppliers;
4. Prices for supply under a contract, the total amount of which is not more than the definite amount determined by the Administrator of the Public Procurement Service in consultation with the Minister of Strategy and Finance;
5. Prices for supply to end-user institutions such as military bases with limited access by procuring enterprises, which are recognized by the Administrator of the Public Procurement Service;
6. Any of the following prices for supply for which the head of an end-user institution has requested to pay:
(a) A natural disaster or cases where there are other reasons corresponding thereto;
(b) Where restoration works are carried out due to a disaster or accident;
7. Other prices for supply determined by the Administrator of the Public Procurement Service in consultation with the Minister of Strategy and Finance to support liquidity to private supplying companies.
(2) Notwithstanding paragraph (1), where the head of an end-user institution pays the price using an information and communication medium and program under Article 46 of the Management of the National Funds Act, this shall be excluded from objects for which the Administrator of the Public Procurement Service pays the price on behalf of the head of an end-user institution (hereinafter referred to as "payment by proxy") pursuant to Article 5-4 (1) of the Act. <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
[This Article Wholly Amended by Presidential Decree No. 22087, Mar. 26, 2010]
<This Article moved from Article 9-4 by Presidential Decree No. 27401, Jul. 28, 2016>
 Article 10 (Determination, etc. of Fees)
(1) The reduction and exemption of fees under Article 6 (1) of the Act and fees under Article 6 (3) of the Act shall be determined and publicly announced by the Administrator of the Public Procurement Service in consultation with the Minister of Strategy and Finance. In such cases, the rate of reduction and exemption of fees shall not exceed 20/100.
(2) Notwithstanding paragraph (1), where entering into a contract for commodities in demand or construction works is delayed for reason which is not the fault of an end-user institution, the Administrator of the Public Procurement Service may not receive fees.
[This Article Wholly Amended by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 11 Deleted. <by Presidential Decree No. 22087, Mar. 26, 2010>
 Article 12 (Period of Payment, etc. of Price and Fees)
(1) Where the head of an end-user institution intends to pay the price to the Administrator of the Public Procurement Service in advance (hereafter referred to as "advance payment" in this Article) pursuant to Article 5-4 (3) of the Act, he/she shall notify the Administrator of the Public Procurement Service of his/her intention to make advance payment when he/she requests the Administrator of the Public Procurement Service to purchase or supply commodities in demand. <Amended by Presidential Decree No. 22087, Mar. 26, 2010; Presidential Decree No. 27401, Jul. 28, 2016>
(2) Deleted. <by Presidential Decree No. 21700, Aug. 25, 2009>
(3) Where the Administrator of the Public Procurement Service intends to collect any of the following prices or fees from an end-user institution, he/she shall give prior notice of payment to the head of an end-user institution: <Amended by Presidential Decree No. 22087, Mar. 26, 2010; Presidential Decree No. 27401, Jul. 28, 2016>
1. The price paid or to be paid by proxy by the Administrator of the Public Procurement Service pursuant to Article 5-4 (1) of the Act, as the price for commodities in demand on which the head of an end-user institution has completed inspection pursuant to Article 55 of the Enforcement Decree of the Act on Contracts to which the State is a Party and Article 64 of the Enforcement Decree of the Act on Contracts to which a Local Government is a Party;
2. The price paid in advance pursuant to Article 5-4 (3) of the Act;
3. Fees under Article 10.
(4) The head of an end-user institution shall pay prices or fees within the following periods that start from the date the Administrator of the Public Procurement Service gives notice for payment pursuant to paragraph (3). In such cases, when calculating the period referred to in subparagraph 1, holidays and Saturdays shall be excluded: <Amended by Presidential Decree No. 22087, Mar. 26, 2010>
1. The price paid by proxy and fees according to such payment by proxy: Five days;
2. The price paid in advance: 14 days;
3. Fees, other than those under subparagraph 1: 15 days.
(5) The Administrator of the Public Procurement Service shall require an end-user institution or a private company to pay the sales price before delivering stockpiled commodities: Provided, That an end-user institution or a private company may be permitted to pay the sales price after delivering stockpiled commodities, if it is short of funds or it is necessary for efficient execution of a stockpile project. <Amended by Presidential Decree No. 22087, Mar. 26, 2010; Presidential Decree No. 25680, Nov. 4, 2014>
(6) An arrearage charge referred to in Article 6-2 of the Act shall be prescribed by Ordinance of the Ministry of Strategy and Finance within the extent not exceeding 10/1000 of the amount of arrearages. <Amended by Presidential Decree No. 22087, Mar. 26, 2010>
 Article 13 (Entrustment of Administration of Facilities, etc.)
(1) The Administrator of the Public Procurement Service may entrust any of the following persons with the administration and operation of warehouses, open storage yards, and other facilities pursuant to the main sentence of Article 7 (1) of the Act: <Amended by Presidential Decree No. 24398, Mar. 18, 2013>
1. A State agency in charge of the administration of physical distribution;
2. Any other person deemed suitable to perform the affairs concerning the administration and operation of facilities by the Administrator of the Public Procurement Service.
(2) Pursuant to the main sentence of Article 7 (1) of the Act, the Administrator of the Public Procurement Service shall entrust the following affairs related to the projects referred to in Article 3 of the Act to a person deemed suitable for executing the relevant affairs, taking into consideration the person's expertise, capabilities to execute such affairs, etc.: <Newly Inserted by Presidential Decree No. 25680, Nov. 4, 2014>
1. Receipt and preliminary examination of applications for designation and affairs related to the designation of exemplary procurement commodities pursuant to Article 9-2 (1) of the Act;
2. Investigation into the financial status and performance of supply of bidders and inspection on the quality, performance, efficiency, etc., of commodities in demand, as part of affairs related to contracts with multiple suppliers referred to in Article 7-2.
(3) Pursuant to the main sentence of Article 7 (1) of the Act, the Administrator of the Public Procurement Service shall entrust the affairs specified in Articles 3-4 (1) and 3-6 of the Act to the person specified in either of the following: <Newly Inserted by Presidential Decree No. 24398, Mar. 18, 2013; Presidential Decree No. 25680, Nov. 4, 2014; Presidential Decree No. 27401, Jul. 28, 2016>
1. In cases falling under Article 3-4 (1) 1, 3, or 4 of the Act: Any of the following persons:
(a) A testing or inspection institution accredited under Article 23 of the Framework Act on National Standards or any other Act;
(b) A person accredited by the Administrator of the Public Procurement Service as competent for implementing affairs related to quality management;
2. In cases falling under Article 3-4 (1) 2 or 3-6 of the Act: A testing or inspection institution accredited under Article 23 of the Framework Act on National Standards or any other Act.
(4) When the Administrator of the Public Procurement Service entrusts affairs to a person pursuant to paragraphs (1) through (3), he/she shall designate and publicly notify the person to whom such affairs are to be entrusted. <Newly Inserted by Presidential Decree No. 24398, Mar. 18, 2013; Presidential Decree No. 25680, Nov. 4, 2014>
[This Article Wholly Amended by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 13-2 Deleted. <by Presidential Decree No. 24398, Mar. 18, 2013>
 Articles 14 and 15 Deleted. <by Presidential Decree No. 22087, Mar. 26, 2010>
 Article 15-2 (Prior Examination of Construction Costs of Local Governments)
(1) With regard to construction works the estimated price of which, under subparagraph 1 of Article 2 of the Enforcement Decree of the Act on Contracts to which a Local Government is a Party, is not less than 10 billion won, the head of a local government shall request the Administrator of the Public Procurement Service to make a prior examination of its construction costs: Provided, That if it falls under any of the following subparagraphs, he/she may refrain from such request:
1. A natural disaster, urgent event or other cases where there are reasons corresponding thereto;
2. In cases where restoration works are carried out due to a disaster or accident;
3. Other cases where construction works are required due to the peculiarity, urgency, etc. of construction works.
(2) In cases where the Administrator of the Public Procurement Service has been requested to make a prior examination of construction costs pursuant to paragraph (1), he/she shall notify the head of the local government concerned of the results thereof within 10 days from the date of receiving the said request, unless he/she has any special reason to the contrary.
[This Article Wholly Amended by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 16 (Handling of Accident to Commodities to be Procured)
If any accident occurs to a ship loaded with commodities to be procured from overseas, the Administrator of the Public Procurement Service shall handle it according to international practices and notify the relevant end-user institution of the result thereof.
[This Article Wholly Amended by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 17 Deleted. <by Presidential Decree No. 24728, Sep. 17, 2013>
 Article 18 (Designation of Excellent Commodities to be Procured)
(1) "Commodities, the performance, technology or quality of which meets the standards prescribed by Presidential Decree" in the part other than the items of Article 9-2 (1) 1 of the Act means the following commodities that meet the standards established by the Administrator of the Public Procurement Service, taking into consideration the importance of technology, the excellence of quality, etc.: Provided, That such commodities as beverages, foodstuffs, animals, plants, where it is impracticable to ensure quality, and such commodities as weapons, guns, and gunpower, where the Administrator of the Public Procurement Service deems it inappropriate to designate excellent commodities, shall be excluded herefrom: <Amended by Presidential Decree No. 22342, Aug. 17, 2010; Presidential Decree No. 25680, Nov. 4, 2014; Presidential Decree No. 27401, Jul. 28, 2016>
1. Excellent commodities to be procured shall be commodities produced by putting a patented invention under the Patent Act, a registered utility model under the Utility Model Act, and a registered design under the Design Protection Act to practical use;
2. Excellent commodities to be procured shall be commodities to which new technology has applied, commodities of excellent quality, eco-friendly commodities or resource recycled commodities certified or recommended by the competent Minister under statutes or by any person delegated by the competent Minister under statutes;
3. Deleted. <by Presidential Decree No. 22342, Aug. 17, 2010>
(2) "Any of the enterprises which meets the criteria prescribed by Presidential Decree, such as the amount of sales and the period elapsed since it has become a middle-standing enterprise" in Article 9-2 (1) 1 (b) of the Act means any of the following enterprises among the middle-standing enterprises defined under Article 2 of the Special Act on the Promotion of Growth and the Strengthening of Competitiveness of Middle-Standing Enterprises (hereinafter referred to as "middle-standing enterprise"): Provided, That in cases of a middle-standing enterprise which intends to have its product designated as a competing product among small and medium business proprietors under Article 6 of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets, it means a middle-standing enterprise which meets all the requirements prescribed in the subparagraphs of Article 8-3 (1) of the same Act: <Newly Inserted by Presidential Decree No. 27401, Jul. 28, 2016>
1. An enterprise for which three years have not elapsed yet since the expiration of the period during which it is deemed a small and medium business, if it is deemed a small and medium business under Article 2 (3) of the Framework Act on Small and Medium Enterprises;
2. An enterprise whose average annual sales amount during the three years immediately preceding the year, in which the designation as exemplary procurement commodities was made, is less than 300 billion won.
(3) Any person who seeks designation for excellent commodities to be procured under Article 9-2 (1) of the Act, shall file an application for designation stating the matters concerning the subparagraphs of paragraph (1) with the Administrator of the Public procurement Service. <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
(4) Where the Administrator of the Public Procurement Service has received an application pursuant to paragraph (3), he/she shall examine whether the relevant commodities meet the standards for designation pursuant to paragraph (1) and determine the designation of the relevant commodities as excellent commodities to be procured, within 90 days from the date of application: Provided, That if there is a reason that makes it difficult to determine the designation within 90 days, he/she may extend the period of determination and shall notify an applicant of the reason of the extension, the scheduled date of determination, etc. <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
(5) When the Administrator of the Public Procurement Service has determined the designation in accordance with paragraph (4), he/she shall notify an applicant of the result thereof in writing, and insert the commodities designated as excellent commodities to be procured in the government electronic procurement system. <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
(6) The term of validity of designation of excellent commodities to be procured shall be three years from the date announced officially under Article 9-2 (1) of the Act: Provided, That where the Administrator of the Public Procurement Service deems it necessary through the examination on the sales record, the details of the performance of a contract, a forecast of future demand, etc., of excellent commodities to be procured, he/she may extend the term of validity of designation by up to three years. <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
(7) To promote sales and expand the market for excellent commodities to be procured, the Administrator of the Public Procurement Service may make efforts both inside and outside of Korea to increase publicity, support export, or signing contracts for end-user institutions pursuant to Article 9-2 (2) of the Act. <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
(8) In addition to the matters prescribed in paragraphs (1) through (7), detailed matters necessary for the selection standards and procedures, extension of the term of validity of designation, etc., of excellent commodities to be procured, shall be determined and announced officially by the Administrator of the Public Procurement Service. <Amended by Presidential Decree No. 27401, Jul. 28, 2016>
[This Article Wholly Amended by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 18-2 (Designation of Joint Trademark of Excellent Procurement)
(1) "Number prescribed by Presidential Decree" in Article 9-2 (1) 2 of the Act means 5.
(2) "Standards prescribed by Presidential Decree" in Article 9-2 (1) 2 of the Act means cases that meet all of the following requirements: <Amended by Presidential Decree No. 25680, Nov. 4, 2014>
1. A joint trademark of excellent procurement shall comprise the commodities referred to in Article 18 (1) or the commodities to which a technology or design registered or certified in accordance with the aforesaid provisions have been applied;
2. The number of persons who produce the commodities referred to in Article 18 (1), among small and medium enterprises participating in a joint trademark, shall exceed the number of persons determined by the Administrator of the Public Procurement Service.
(3) Any person who seeks designation for a joint trademark of excellent procurement pursuant to Article 9-2 (1) of the Act shall file an application for designation stating the matters referred to in the subparagraphs of paragraph (2) with the Administrator of the Public Procurement Service.
(4) When the Administrator of the Public Procurement Service has received an application pursuant to paragraph (3), he/she shall examine whether the relevant joint trademark meets the standards for designation pursuant to paragraphs (1) and (2) and determine the designation as a joint trademark of excellent procurement, within 90 days from the date of application: Provided, That if there is a reason that makes it difficult to determine the designation within 90 days as a joint trademark of excellent procurement, he/she may extend the period for determination thereof, and shall notify an applicant of the reason of the extension, the scheduled date of determination, etc.
(5) When the Administrator of the Public Procurement Service has determined the designation in accordance with paragraph (4), he/she shall notify an applicant of the result thereof in writing, and insert the joint trademark designated as a joint trademark of excellent procurement in the government electronic procurement system.
(6) The term of validity of designation of a joint trademark of excellent procurement shall be three years from the date of announcement pursuant to Article 9-2 (1) of the Act: Provided, That where the Administrator of the Public Procurement Service deems it necessary to extend the term of validity of designation through the examination of the sales record, the details of the performance of a contract, a forecast of future demand, etc., of commodities under the joint trademark of excellent procurement, he/she may extend the term of validity of designation only once, by up to three years.
(7) To promote sales and expand the market for commodities under joint trademark of excellent procurement, the Administrator of the Public Procurement Service may make efforts both inside and outside of Korea to increase publicity, support export, or signing contracts for end-user institutions pursuant to Article 9-2 (2) of the Act.
(8) In addition to the matters prescribed by paragraphs (1) through (7), detailed matters necessary for the standards and procedures for designation, extension of the term of validity of designation, etc., of commodities under the joint trademark of excellent procurement, shall be determined and announced by the Administrator of the Public Procurement Service in consultation with the Minister of Strategy and Finance.
[This Article Wholly Amended by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 18-3 (Cancellation of Designation of Excellent Commodities to be Procured)
"Cases prescribed by Presidential Decree, such as failing to meet the first standards of designation" in Article 9-2 (3) of the Act means any of the following cases:
1. Where it has been designated by deceit or other unjust means;
2. Where it has failed to meet the standards for designation pursuant to Article 18 (1) or 18-2 (1) and (2);
3. Where the Administer of the Public Procurement Service determines and announces officially, as other cases where any person who has been designated for excellent commodities to be procured or for a joint trademark of excellent procurement is apt to damage the fair performance of procurement business or the appropriate performance of a contract in relation to the relevant commodities.
[This Article Newly Inserted by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 18-4 (Objection to Requirement to Rectify Unfair Procurement Practices for Demand Commodities)
(1) An opposite party to a contract who intends to raise an objection under Article 9-3 (5) of the Act shall file with the Administrator of the Public Procurement Service, an application for objection prescribed by Ordinance of the Ministry of Strategy and Finance along with evidence corroborating his/her objection, within 30 days from the date he/she was required to rectify.
(2) The application for objection referred to in paragraph (1) shall contain the following details:
1. Name, phone number, and address (including electronic address) or residence of the person raising the objection;
2. Details of the application for objection and the requirement for rectification;
(3) Upon receipt of an application for objection referred to in paragraph (1), the Administrator of the Public Procurement Service shall examine the application and notify the opposite party of the determined results within 30 days of the receipt of application: Provided, That the period may be extended by up to 30 days, if any determination is impracticable due to extenuating circumstances, such as new evidence submitted during the investigation, which requires more time to verify.
(4) Where the details or procedures of the application for objection are deemed inadequate or revisable, the Administrator of the Public Procurement Service may require the opposite party to revise within a fixed period not exceeding 20 days: Provided, That he/she may directly revise minor matters by his/her own authority.
(5) The Administrator of the Public Procurement Service shall require a revision under the main sentence of paragraph (4), in writing specifying the following matters:
1. Matters to be revised;
2. Reasons for requiring the revision;
3. Period of revision;
4. Other necessary matters.
(6) The period referred to in the main sentence of paragraph (4) shall not be included, when calculating the period referred to in paragraph (3).
[This Article Newly Inserted by Presidential Decree No. 28186, Jul. 17, 2017]
 Article 19 (Extent of Persons Entitled to Receive Reward)
(1) Any person entitled to receive a reward under Article 10 (1) of the Act shall be a reporter, etc. meeting all the following requirements (referring to a reporter, etc. under Article 10 (1) of the Act; hereinafter the same shall apply):
1. He/she shall have reported or informed bribery first before any investigation agency or any agency related to inspection and investigation of corrupt practices (referring to corrupt practices under subparagraph 4 of Article 2 of the Act on the Prevention of Corruption and the Establishment and Management of the Anti-Corruption and Civil Rights Commission; hereinafter the same shall apply) becomes aware thereof, and have furnished materials thereon;
2. It shall not be a case where a public official who is or was involved in any inspection agency or in inspection and investigation of corrupt practices (referring to a public official under subparagraph 3 of Article 2 of the Act on the Prevention of Corruption and the Establishment and Management of the Anti-corruption and Civil Rights Commission) has reported or informed in relation to a matter which is or was within the scope of his/her duties;
3. He/she shall not be the relevant person who has offered or received a bribe.
(2) The amount of a reward shall be determined by the Administrator of the Public Procurement Service within the extent of five times the amount of bribery, in consideration of a scale of the amount of bribery, influence on procurement projects, the budget, etc.: Provided, That the limit of a reward shall be 20 million won. <Amended by Presidential Decree No. 22342, Aug. 17, 2010>
(3) In principle, a reward shall be granted in cash in order to keep confidential information of a reporter, etc.
(4) Procedures for application for and timing for payment of rewards, and other necessary matters shall be determined and publicly announced by the Administrator of the Public Procurement Service.
[This Article Wholly Amended by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 19-2 (Payment of Prices of Stockpile Commodities by Credit Card, etc.)
(1) An institution designated by the Administrator of the Public Procurement Service, as prescribed by Ordinance of the Ministry of Strategy and Finance, as an institution that makes payments by credit card, debit card, etc., by using an information and communications network (hereafter referred to "credit card, etc." in this Article), shall be an institution for vicarious payment of price of stockpile commodities under Article 11-2 (1) of the Act (hereafter referred to as "institution for vicarious payment of price of stockpile commodities" in this Article).
(2) An institution for vicarious payment of price of stockpile commodities may, in return for the vicarious payment of price of stockpile commodities, receive a fee for vicarious payment of price of stockpile commodities in an amount prescribed by Ordinance of the Ministry of Strategy and Finance not exceeding 10/1,000 of the relevant payment amount from a person who intends to procure the stockpile commodities.
(3) The Administrator of the Public Procurement Service may determine matters necessary for the payment of prices of stockpile commodities by credit card, etc.
[This Article Newly Inserted by Presidential Decree No. 27401, Jul. 28, 2016]
 Article 20 (Persons Subject to Participation in Private-Public Joint Stockpile Projects)
(1) The Administrator of the Public Procurement Service may perform a private-public joint stockpile project with any of the following persons pursuant to Article 12 (1) of the Act: <Amended by Presidential Decree No. 27037, Mar. 11, 2016>
1. A domestic or overseas company which produces or supplies raw materials;
2. A domestic or overseas company which consumes raw materials;
4. A financial company insured pursuant to subparagraph 1 of Article 2 of the Depositor Protection Act.
(2) Any person who intends to participate in a private-public joint stockpile project shall submit an application for a stockpile project with a stockpile project plan attached thereto, stating the items to be stockpiled, the period of stockpile, the quantity of stockpile, etc., to the Administrator of the Public Procurement Service.
(3) Where the Administrator of the Public Procurement Service who has received an application pursuant to paragraph (2) deems that an applicant is appropriate for performing a private-public joint stockpile project as a result of the examination of the documents submitted, he/she may approve the relevant applicant as a private business operator participating in the private-public joint stockpile project (hereinafter referred to as "private stockpile business operator").
(4) In addition to the matters prescribed by paragraphs (1) through (3), the standards and procedures for approval of a private stockpile business operator, and other matters necessary for management of a private-public joint stockpile project, shall be determined and announced officially by the Administrator of the Public Procurement Service.
[This Article Newly Inserted by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 21 (Private-Pubic Joint Stockpile Agreement)
(1) Any person approved as a private stockpile business operator pursuant to Article 20 (3) shall enter into a private-public joint stockpile agreement including the scope and method of a stockpile project, quantities subject to preferential sale, sale prices and conditions, etc. of stockpiled commodities pursuant to Article 12 (3) of the Act with the Administrator of the Public Procurement Service.
(2) A private stockpile business operator may use stockpiling facilities administered by the Administrator of the Public Procurement Service to store stockpiled commodities purchased in accordance with a private-public joint stockpile agreement referred to in paragraph (1), and the Administrator of the Public Procurement Service may, where a private stockpile business operator requests, purchase or sell stockpiled commodities by proxy.
[This Article Newly Inserted by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 22 (Reduction or Exemption of Rent of Stockpiling Facilities)
(1) "Standards prescribed by Presidential Decree" in Article 12 (2) of the Act means cases where a private stockpile business operator meets all the following requirements:
1. The quantity subject to preferential sale pursuant to Article 12 (3) of the Act shall not be less than 10/100 of the whole stockpile quantity;
2. The period of stockpile shall not be less than two months;
3. The average stockpile quantity during the period of stockpile shall not be less than the fixed rate of the planned stockpile quantity determined by the Administrator of the Public Procurement Service in consideration of the demand of the domestic stockpiled commodities, etc.
(2) The Administrator of the Public Procurement Service may reduce or exempt a rent for stockpiling facilities within the extent of 50/100 and reduce or exempt administrative expenses of stockpiling facilities pursuant to Article 12 (2) of the Act. In such cases, the specific rate of reduction or exemption shall be determined and announced officially by the Administrator of the Public Procurement Service in consideration of the quantity subject to preferential sale, the period of stockpile, the value of stockpiled commodities, etc.
[This Article Newly Inserted by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 23 (Method of Preferential Sale and Sanctions at Time of Violation)
(1) Where the Administrator of the Public Procurement Service requests a private stockpile business operator whose rent has been reduced or exempted under Article 12 (3) of the Act to sell stockpiled commodities preferentially, the private stockpile business operator shall sell the relevant stockpiled commodities to the Administrator of the Public Procurement Service at a price and on the conditions prescribed by a private-public joint stockpile agreement pursuant to Article 21 (1).
(2) Where a private stockpile business operator who has been requested to sell stockpiled commodities preferentially pursuant to paragraph (1) fails to comply with such request without justifiable grounds, the Administrator of the Public Procurement Service may take the following sanctions pursuant to Article 12 (3) of the Act:
1. Redemption of a rent and administrative expenses reduced or exempted under Article 22 (2);
2. The cancellation of approval of a private stockpile business operator;
3. Deleted. <by Presidential Decree No. 25680, Nov. 4, 2014>
[This Article Newly Inserted by Presidential Decree No. 22087, Mar. 26, 2010]
 Article 23-2 (Re-examination of Regulations)
The Administrator of the Public Procurement Service shall examine the appropriateness of the guidelines for imposing administrative fines pursuant to Article 24, every three years from January 1, 2015 (referring to the period that ends on the day before January 1 of every third year) and shall take measures for improvement, etc. <Amended by Presidential Decree No. 27751, Dec. 30, 2016>
[This Article Newly Inserted by Presidential Decree No. 25840, Dec. 9, 2014]
 Article 24 (Guidelines for Imposing Administrative Fines)
The guidelines for imposing administrative fines under Article 14 (1) of the Act are as prescribed in the attached Table.
[This Article Newly Inserted by Presidential Decree No. 24398, Mar. 18, 2013]
ADDENDA
(1) (Enforcement Date) This Decree shall enter into force on January 1, 1995.
(2) (Repeal of other Statutes) The Enforcement Decree of the Government Procurement Fund Act shall be repealed.
ADDENDA <Presidential Decree No. 15831, Jul. 9, 1998>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Applicable Examples concerning Provisions concerning Disposition of Security Deposits and Compensations for Delay) The amended provisions of Article 5 shall be applicable starting from the portion of security deposits for bids and contracts, and compensations for any delay which have any cause to be reverted to the National Treasury after this Decree enters into force.
(3) (Applicable Examples concerning Provisions concerning Price of Construction for Which Conclusion of Contract shall be Required) The amended provisions of Article 15 (1) 1 shall be applicable starting from the portion of the construction for which end-user institutions require the Administrator of the Public Procurement Service to conclude a contract after this Decree enters into force.
ADDENDUM <Presidential Decree No. 17011, Dec. 5, 2000>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 17689, Jul. 30, 2002>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 12 shall enter into force on September 30, 2002.
(2) (Transitional Measures concerning Payment of Prices) The previous provisions shall govern the payment of prices under the contracts concluded before this Decree enters into force, notwithstanding the amended provisions of Article 12.
ADDENDA <Presidential Decree No. 18634, Dec. 31, 2004>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Application Example concerning Payment Time Limit of Purchase Price for Procured Commodities) The amended provisions of Article 12 (4) shall be appliable starting from the portion of payment notification after this Decree enters into force.
(3) (Application Example concerning Prior Examination of Construction Costs) The amended provisions of Article 15-2 shall be appliable starting from the portion of requesting the prior examination of construction costs after this Decree enters into force.
(4) (Special Cases concerning Self-Order of Local Governments' Construction) The local governments may make a self-conclusion of construction contracts without requesting the Administrator of the Public Procurement Service after the period pursuant to construction scales falling under each of the following subparagraphs, notwithstanding the proviso to Article 15 (1):
1. Construction subject to prior examination of qualification for participating in bidding for less than 20 billion won: January 1, 2005;
2. Construction subject to prior examination of qualification for participating in bidding for less than 50 billion won: January 1, 2007;
3. Construction subject to prior examination of qualification for participating in bidding for not less than 50 billion won: January 1, 2008;
4. Construction subject to alternative bidding or package bidding: January 1, 2010.
ADDENDA <Presidential Decree No. 18903, Jun. 30, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2005.
Articles 2 Omitted.
ADDENDUM <Presidential Decree No. 19537, Jun. 22, 2006>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 20720, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009. (Proviso Omitted.)
Articles 2 through 28 Omitted.
ADDENDUM <Presidential Decree No. 21248, Jan. 6, 2009>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 21593, Jul. 1, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability)
The amended provisions of Article 12 (4) shall apply beginning with the first notice for payment after this Decree enters into force.
ADDENDUM <Presidential Decree No. 21700, Aug. 25, 2009>
This Decree shall enter into force on August 28, 2009.
ADDENDA <Presidential Decree No. 21834, Nov. 20, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 22, 2009.
Articles 2 and 3 Deleted.
ADDENDA <Presidential Decree No. 22087, Mar. 26, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 30, 2010.
Article 2 (Applicability to Period of Payment of Price and Fee)
The amended provisions of Article 12 (4) 1 shall apply beginning with the first price and fee notified for payment after this Decree enters into force.
ADDENDA <Presidential Decree No. 22342, Aug. 17, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 18, 2010.
Article 2 (Applicability to Special Cases on Contract for Products in Competition among Small and Medium Enterprises)
The amended provisions of Article 9-2 shall apply beginning with the first contract for which a bid is publicly notified after this Decree enters into force.
Article 3 (Applicability to Granting Reward)
The amended provisions of Article 19 (2) shall apply beginning with the first bribery which is reported or informed after this Decree enters into force.
ADDENDA <Presidential Decree No. 24398, Mar. 18, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 19, 2013.
Article 2 (Applicability to Bearing of Expenses for Quality Inspections)
The amended provisions of Article 4-2 (1) shall apply to quality inspections conducted after this Decree enters into force.
Article 3 (Applicability to Imposition of Administrative Fines)
The amended provisions of Article 24 shall apply to violations committed after this Decree enters into force.
ADDENDA <Presidential Decree No. 24728, Sep. 17, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 23, 2013.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 25077, Jan. 14, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 17, 2014.
Article 2 (Special Exception to Methods and Procedure for Preparing Statistics of Procurement)
Notwithstanding the amended provisions of Article 4-3 (5), the Administrator of the Public Procurement Service may determine and publicly notify matters necessary for preparing and submitting data by not later than December 31, 2014, as necessary for designating the information processing system for preparing and submitting such data under the amended provisions of Article 4-3 (2).
ADDENDA <Presidential Decree No. 25680, Nov. 4, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Request for Conclusion of Second and Subsequent Contracts for Long-Term Continuing Contract)
The amended provisions of Article 9-3 (1) 4 shall begin to apply from where the head of an end-user institution requests the Administrator of the Public Procurement Service to conclude a long-term continuing contract after this Decree enters into force.
ADDENDA <Presidential Decree No. 25840, Dec. 9, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015.
Articles 2 through 16 Omitted.
ADDENDA <Presidential Decree No. 26248, May 26, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 28, 2015.
Articles 2 through 7 Omitted.
ADDENDUM <Presidential Decree No. 26429, Jul. 24, 2015>
This Decree shall enter into force on August 4, 2015.
ADDENDA <Presidential Decree No. 27037, Mar. 11, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 27401, Jul. 28, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 27751, Dec. 30, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2017. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDUM <Presidential Decree No. 28186, Jul. 17, 2017>
This Decree shall enter into force on July 18, 2017.