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GOVERNMENT PROCUREMENT ACT
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GOVERNMENT PROCUREMENT ACT
GOVERNMENT PROCUREMENT ACT
INTRODUCTION
Details of Enactment and Amendment
- This Act was enacted on January 5, 1994 as Act No. 4697 in order to increase clarity in the operation of government procurement
services and heighten the efficiency of the government procurement services conducted under the previous Government Procurement Fund
Act as the scale of procurement services that the government requires has grown in size.
Main Contents
- Government procurement services are provided by the Administrator of the Supply Administration and are divided into four areas:
(1) Purchase, transportation, operation, storage, and supply of the commodities required by government agencies, local governments,
and other demanding administrative agencies and the commodities reserved by the government to ensure smoothness in the supply of
commodities and price stabilization; (2) Contracts involving construction of facilities for demanding administrative agencies; (3)
Administration and operation of facilities for demanding administrative agencies; (4) Other services that the Administrator of the
Supply Administration may perform under other Acts and subordinate statutes.
- The Administrator of the Supply Administration may, if necessary, trade futures in conducting the government procurement business.
- The Administrator of the Supply Administration may use the electronic supply method and construct and operate national comprehensive
electronic procurement system in conducting the government procurement business.
- Details regarding the procedures and scope of procurement services, such as the purchase and supply of procurement commodities and
contracts for facilities construction, are prescribed by the Presidential Decree.
GOVERNMENT PROCUREMENT ACT
Act No. 4697, Jan. 5, 1994
Amended by Act No. 7394, Mar. 24, 2005
Article 1 (Purpose)
The purpose of this Act is to provide for the necessary matters concerning the administration and management of government procurement
service for the efficient performance of government procurement service.
Article 2 (Definitions)
For the purpose of this Act,
1.the term procured commodities means demand commodities and reserved commodities;
2.the term demand commodities means the commodities required by the demanding administrative agency as referred to in subparagraph
4 below, which are stipulated by the Presidential Decree;
3.the term reserved commodities means the necessities of life, raw materials, and facility materials that the Government directly
purchases and reserves for emergencies or supplies for the smoothness of the long and short term supply and demand of commodities
and for the price stabilization, which are stipulated in the Presidential Decree; and
4.the term demanding administrative agency means the following administrative agency requiring for the procurement commodities,
conclusion of contract of facilities construction or management of facilities:
(a) national administrative agency;
(b) local government; and
(c) other administrative agency which shall be prescribed by the Presidential Decree.
Article 3 (Scope of Government Procurement Service)
The scope of government procurement service in charge of the Administrator of the Public Procurement Service shall be as the following
subparagraphs:
1.The purchase, transportation, operation, storage, and supply of procurement commodities and any business ancillary thereto;
2.The contract of facilities construction for demanding administrative agency and any business ancillary thereto;
3.The administration and operation of facilities for demanding administrative agency and any business ancillary thereto; and
4.Any business of the same type as referred to in the preceding subparagraphs 1 through 3 which the Administrator of the Public Procurement
Service may or is required to perform by other Acts and subordinate statutes.
Article 4 (Futures Trading)
(1) The Administrator of the Public Procurement Service may deal in the futures, if necessary, in a case where he performs the government
procurement service.
(2) The contents and scope of trading of the futures as provided in paragraph (1) and other necessary matters shall be provided for
by the Presidential Decree.
Article 5 (Special Case of Contract)
The Administrator of the Public Procurement Service may make the contract by the contracting method as stipulated by the Presidential
Decree, if he deems it necessary for the purpose of purchase and supply of commodities or reserved commodities that are commonly
consumed in each demanding administrative agency.
Article 6 (Fees)
(1) The Administrator of the Public Procurement Service shall levy the fees on the demanding administrative agency concerning the
government procurement service.
(2) The fee as provided in paragraph (1) shall be regarded as the revenue of procurement special accounts.
(3) The necessary matters pertaining to the assessment and collection procedure of the fee as provided in paragraph (1) shall be prescribed
by the Presidential Decree.
Article 7 (Entrustment of Facility Management, etc.)
(1) The Administrator of the Public Procurement Service may, when he deems it necessary to perform the government procurement service,
entrust other administrative agencies, a juristic person, an organization, or an individual with the management and operation of
the warehouse, open storage yard and other facilities belonging to the special account for procurement and part of the businesses
provided for in the provisions of subparagraphs 1 through 4 of Article 3. <Amended by Act No. 7394, Mar. 24, 2005>
(2) The Administrator of the Public Procurement Service or any person who has been entrusted under paragraph (1) may keep and manage
the commodities other than the procured commodities in the facilities as a trustee.
(3) The Administrator of the Public Procurement Service may subsidize, in whole or in part, costs needed to perform the entrusted
procurement services provided for in paragraph (1) and businesses within limits of the budget of the procurement special account.
<Newly Inserted by Act No. 7394, Mar. 24, 2005>
Article 8 (Use of Electronic Procurement)
(1) The Administrator of the Public Procurement Service may, when he performs his government procurement services, use electronic
procurement methods (referring to the trading methods that are processed, in whole or in part, by means of electronic documents provided
for in the provisions of subparagraph 1 of Article 2 of the Framework Act on Electronic Commerce; hereinafter the same shall apply).
(2) The Administrator of the Public Procurement Service may build and operate a nationwide integrated government e-procurement system
in order to perform his government procurement services by means of the electronic procurement methods referred to in paragraph (1).
(3) In case where the Administrator of the Public Procurement Service builds and operates the nationwide integrated government e-procurement
system, the heads of demanding administrative agencies shall, when they intend to ask for the purchase and supply of procured commodities
and the conclusion of contracts for facility construction, use the nationwide integrated government e-procurement system: Provided,
That the same shall not apply to a case where the grounds of inevitability accrue due to any natural disaster and any computer disorder,
etc.
[This Article Newly Inserted by Act No. 7394, Mar. 24, 2005]
Article 9 (Procurement Procedure, etc.)
The necessary matters concerning the procedure and scope of government procurement service such as purchase and supply of procured
commodities, contract of facility construction, etc. shall be prescribed by the Presidential Decree.
ADDENDA
(1) (Enforcement Date) This Act shall enter into force on January 1, 1995.
(2) (Repeal of Acts) The Government Procurement Fund Act shall hereby be repealed.
(3) (Transitional Measures) The government procurement service in the course of performance pursuant to the Government Procurement
Fund Act at the time this Act enters into force, shall be considered as the government procurement service established under this
Act, and the government procurement fund established pursuant to the Government Procurement Fund Act shall be considered as the inherent
capital of the special accounts for government procurement, and the special accounts for the government procurement shall succeed
to the procurement fund in any of its claim or debt.
ADDENDUM <Act No. 7394, Mar. 24, 2005>
This Act shall enter into force three months after the date of its promulgation.
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