The Public Procurement Service, responsible for managing procurement contracts worth 209 trillion won ($152 billion) last year — a third of the South Korean government's entire spending — serves as both an allocator of domestic demand and a driver of innovation for the country’s thriving small and medium-sized enterprises.
Lim Ki-keun, who was appointed as PPS administrator in December last year, has taken on this critical responsibility during a period of mounting global economic uncertainties. In a recent interview with The Korea Herald, Lim outlined his vision for enhancing the country's procurement process while bolstering SMEs both at home and abroad.
Back to basics
"Our goal is to go back to the basics," Lim said, highlighting the importance of transparency and reliability in supporting businesses. "Public and private sectors are two pillars of the economy. We aim to ensure transparency and efficiency of the bidding process as we serve as friends of the Korean people."
Under Lim's leadership, the PPS has implemented several measures to achieve the highest standards of integrity. The agency has introduced a three-step oversight process for evaluating board members to ensure transparent, around-the-clock evaluation. It has also begun livestreaming the evaluation process for major construction projects and established a public hotline for reporting irregularities.
Lim emphasized the timeliness of these initiatives, particularly in light of the recent transfer of public housing management tasks to the PPS. "We will actively implement measures so that everyday companies and people can feel the change," he said.
Supporting SMEs
Lim is particularly vocal about PPS' commitment to supporting SMEs, which constitute over 90 percent of the country's public procurement suppliers. "I am committed to becoming the biggest friend of the country's SMEs to build a robust procurement market," Lim said.
One key initiative in this area is the Public Procurement Guide program, which offers comprehensive counseling on procurement logistics for small businesses. "Our seasoned experts offer comprehensive guidance about the entire procurement process on the spot," Lim explained. Since its launch in March, the program has provided 700 one-on-one consultations, helping 35 businesses secure contracts in the PPS marketplace.
Recognizing the burden of excessive regulations for SMEs, Lim has also prioritized deregulation efforts during his tenure. "Key to deregulation is speed," he said. "We plan to continue collaborating with other government departments to identify more obstacles and carry out reforms as soon as possible."
The PPS has already identified 102 cases of inefficiencies and aims to address them promptly. Additionally, the agency has lowered turnover thresholds for SMEs to participate in certain types of procurement, making it easier for smaller firms to qualify.
Global expansion
Beyond domestic support, the PPS is actively propelling Korean SMEs into the global marketplace. Its efforts are focused on tapping into the international procurement market valued at an estimated$12 trillion as of 2021.
On top of the agency’s G-PASS program that continues to certify and support promising enterprises, Lim has initiated more diverse and collaborative measures since taking office. "We're ramping up our efforts to bolster exports and ensure our businesses succeed in overseas markets," he said.
This year, the PPS has significantly expanded its program for beta testing SME products with foreign partners. International partnerships have grown from 21 to 31 entities, with the value of goods in the program increasing nearly sixfold this year.
In another instance of global outreach, the PPS partnered with the Foreign Ministry to boost a local X-ray manufacturer's aid to Ukraine. The value of humanitarian aid multiplied 2.5 times compared from last year, addressing ongoing needs while enhancing the company's global profile.
Looking ahead, Lim outlined a series of international events aimed at bolstering SMEs' export capabilities. "We're gearing up for procurement workshops with Asia-Pacific countries in collaboration with the Asian Development Bank in August and September," he said. "October will see our largest-ever public procurement consulting conference, jointly organized with the Foreign Ministry and Korea Trade-Investment Promotion Agency."
By leveraging partnerships with other government agencies and overseas entities, the PPS aims to forge a robust global network for Korean SMEs to thrive in international markets.
"Our approach now is more collaborative and diverse," Lim said. "We're actively working with multiple stakeholders to create a robust export network and elevate Korea's leadership in global public procurement.”
Friendly branding
On a lighter note, Lim shared his vision for making the PPS more relatable to everyday Koreans. In a bid to soften its somewhat bureaucratic image, the PPS recently debuted an ad campaign featuring the Korean National Ballet.
The video, titled "The Next Stage," draws parallels between ballet performances and public procurement, emphasizing the precision and collaboration required in both domains. With 124,000 views and 1,000 likes on YouTube, the ad has seen unexpected success for a government initiative.
"Just as dancers move in perfect harmony, we strive to synchronize public and private sectors to assist Korea's SMEs in reaching global markets," Lim said.
"Our mission is to elevate these enterprises to world-class status, much as the Korean National Ballet aims to cultivate world-class talent."
