Article 1(Purpose) #
The purpose of this Act is to promote smooth administration of contracts by prescribing basic matters regarding contracts to which the State is a party.
[This Article Wholly Amended on Dec. 18, 2012]
Article 2(Scope of application) #
This Act shall apply to contracts to which the State is a party, including government procurement contracts awarded through international tendering procedures and contracts to which a national of the Republic of Korea is the contracting party (including contracts that become sources of revenue).
[This Article Wholly Amended on Dec. 18, 2012]
Article 3(Relationship to other Acts) #
Except as otherwise provided in any other Act, contracts to which the State is a party shall be governed by the provisions of this Act.
[This Article Wholly Amended on Dec. 18, 2012]
Article 4(Scope of government procurement contracts made through international tendering procedures) #
(1) The scope of government procurement contracts awarded through international tendering procedures shall cover contracts awarded by a government agency for goods, construction works, or services in the amount not less than that determined and publicly notified by the Minister of Economy and Finance in accordance with the Agreement on Government Procurement and international norms based on the aforementioned Agreement; provided, the following cases shall be excluded from transactions subject to a government procurement contract awarded through international tendering procedures: <Amended on Oct. 1, 2025>
1. Where goods or services necessary for manufacturing for the purpose of resale or sale are procured;
2. Where products from a small or medium enterprise are manufactured and purchased under the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets;
3. Where agricultural, fishery, or livestock products are purchased pursuant to the Grain Management Act, the Act on Distribution and Price Stabilization of Agricultural and Fishery Products, or the Livestock Industry Act;
4. Other cases specified by Presidential Decree in conformity with the provisions of the Agreement on Government Procurement.
(2) The scope of government agencies and goods, construction works, and services referred to in the main clause, with the exception of the subparagraphs, of paragraph (1) shall be prescribed by Presidential Decree according to the Agreement on Government Procurement.
(3) If the head of each central government agency defined under Article 6 of the National Finance Act (hereinafter referred to as "head of each central government agency") or the public official to whom contracting is delegated or entrusted under Article 6 (hereinafter referred to as "contracting official"), deems it necessary in the light of the purposes, nature, etc. of a contract, he or she may procure goods or services through international tendering procedures, as prescribed by Presidential Decree, even where the case does not fall under paragraph (1).
[This Article Wholly Amended on Dec. 18, 2012]
Article 5(Principles of contracting) #
(1) A contract shall be concluded by agreement of parties to the contract on equal footing, and the parties shall perform the terms and conditions of the contract in good faith.
(2) In cases of international tendering procedures under Article 4(1), in compliance with the principle of reciprocity, neither the head nor contracting official of each central government agency shall make any special agreement or attach any condition that discriminates against nationals of contracting states to the Agreement on Government Procurement and goods produced, or services provided, by such States and in favor of nationals of the Republic of Korea and goods produced, or services provided, from the Republic of Korea.
(3) In concluding a contract, neither the head nor contracting official of each central government agency shall stipulate any special terms or conditions (hereinafter referred to as "unfair special terms and conditions") in a contract that unduly restrict the contractual interests of the contracting party as prescribed by this Act or other relevant statutes or regulations. <Added on Nov. 26, 2019>
(4) Any unfair special terms and conditions under paragraph (3) shall be null and void. <Added on Nov. 26, 2019>
[This Article Wholly Amended on Dec. 18, 2012]
Article 5-2(Integrity pact) #
(1) The head of each central government agency or a contracting official shall, in order to enhance transparency and fairness in contracts to which the State is a party, require each tenderer or contracting party to pledge not to offer or receive money, valuables, entertainment, etc., directly or indirectly, in the process of bidding, winning a contract, concluding a contract, or performing a contract (including after completion or delivery), and shall conclude a contract (hereinafter referred to as "integrity pact") that includes a condition that, if such pledge is violated, the relevant tender or contract award may be canceled or the contract may be canceled or terminated. <Amended on Jun. 9, 2020>
(2) Detailed terms and conditions of an integrity pact, the procedures for entering into such agreement, and other details thereof shall be prescribed by Presidential Decree.
[This Article Added on Dec. 18, 2012]
Article 5-3(Cancellation and termination of contract upon breach of integrity pact) #
The head of each central government agency or a contracting official shall cancel the relevant bid or award or cancel or terminate the contract if an integrity pact is violated; provided, if it is deemed that canceling or terminating the contract would significantly undermine the public interest, in consideration of various circumstances such as the gravity of the dishonest act including offering money or entertainment, the degree of performance of the contract, and the extent of damage to the State from discontinuing the contract, the contract may continue to be performed with the approval of the head of the central government agency, as prescribed by Presidential Decree.
[This Article Added on Dec. 18, 2012]
Article 5-4(Compliance with labor-related statutes or regulations) #
The head or a contracting official of a central government agency may include, in a contract, the terms and conditions of labor of the workers (including workers employed by a contractor under the Fair Transactions in Subcontracting Act) on whom the contracting party executes in compliance with the Labor Standards Act and other labor-related statutes or regulations, such as the Labor Standards Act.
[This Article Added on Mar. 31, 2020]
Article 6(Delegation and entrustment of administrative affairs regarding contracts) #
(1) The head of each central government agency may, when deemed necessary for handling contract affairs under his or her jurisdiction, appoint a public official in charge of contract affairs (hereinafter referred to as "contracting officer") from among his or her subordinate public officials and delegate such affairs to them, and may have his or her subordinate public officials act as agents for the contracting officer's business affairs or assign them to handle part of such business affairs.
(2) The head of each central government agency may entrust business affairs to be assigned to the contracting officer to a public official of another central government agency, as prescribed by Presidential Decree.
(3) The head of each central government agency may entrust affairs regarding contracts within his or her jurisdiction to another government agency, as prescribed by Presidential Decree.
(4) The delegation or entrustment of business affairs to be assigned to a contracting officer, the appointment of an acting contracting officer, or the partial allotment of business affairs under paragraphs (1) and (2) may be substituted by the designation of a public office already established in an agency affiliated with each central government agency.
(5) No person shall serve as a contracting officer without the financial guarantee prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 18, 2012]
Article 7(Method of contracting) #
(1) Where the head or contracting official of each central government agency intends to award a contract, he or she shall call for open tenders for the contract; provided, if it is deemed necessary in the light of the purpose, nature, size, etc. of a contract, the head or contracting official of each central government agency may place restrictions on qualifications for participants or nominate participants to invite competitive tenders or may enter into a negotiated contract, as prescribed by Presidential Decree.
(2) Where competitive tenders are invited under the main clause of paragraph (1), tenderers shall undergo a pre-qualification process to be qualified for making a tender in accordance with the standards and procedures for pre-qualification necessary for evaluating contract performance capacity, including the level of difficulty of performing the contract, performance records, technical capacity, financial position, social reputation, and the level of fidelity to the performance of a contract, and only pre-qualified persons may be invited to make a tender.
(3) Where there is competition among tenders eligible for preferential purchase prescribed in other statutes in awarding a contract under paragraph (1), a contracting party shall be chosen taking into account the purpose and scale of the contract, consideration for the socially disadvantaged, etc. <Added on Dec. 19, 2017>
[This Article Wholly Amended on Dec. 18, 2012]
Article 8(Public tender notice) #
(1) Where the head or contracting official of each central government agency calls for competitive tenders, he or she shall give a public announcement or notification of matters regarding the tendering procedures.
(2) The methods, contents, and timing of the public announcement or notification of tendering procedures under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 18, 2012]
Article 8-2(Preparation of estimated price) #
(1) The head or contracting official of each central government agency shall, in advance, prepare the estimated price of an item for which tenders are to be invited or a negotiated contract, etc. are to be concluded, according to the relevant specifications, design documents, etc., to use the price as a standard for determining a successful tenderer and the contract amount; provided, in cases prescribed by Presidential Decree, such as where a contract is concluded with another State agency or local government, the estimated price may not be prepared or be omitted.
(2) Where the head or contracting official of each central government agency prepares the estimated price under the main clause of paragraph (1), he or she shall reflect an appropriate price to ensure the quality, safety, etc. of the object of the relevant contract, taking into account the contract quantity, the period of performance, the conditions of supply and demand, the terms and conditions of the contract, etc.
(3) The timing for preparing the estimated price under the main clause of paragraph (1), the methods and standards for determining the price, and other necessary matters shall be prescribed by Presidential Decree.
[This Article Added on Nov. 26, 2019]
Article 9(Tender bond) #
(1) The head or contracting official of each central government agency shall require persons who intend to make a competitive tender to pay a tender bond; provided, a tenderer may be wholly or partial exempted from a tender bond in the cases prescribed by Presidential Decree.
(2) The amount of a tender bond under paragraph (1), the method of payment thereof, and other necessary matters shall be prescribed by Presidential Decree.
(3) When a successful tenderer fails to enter into the relevant contract, the head or contracting official of each central government agency shall vest the relevant tender bond in the National Treasury. In such cases, when a successful tenderer has been wholly or partially exempted from a tender bond under the proviso of paragraph (1), he or she shall vest the amount equivalent to the tender bond in the National Treasury, as prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 18, 2012]
Article 10(Determination of successful tenderer in competitive tendering procedure) #
(1) In a competitive tendering procedure that becomes a source of revenue, a person who tenders the highest price shall be determined as a successful tenderer; provided, this shall not apply where criteria for successful tenderers are prescribed by Presidential Decree, taking into consideration purposes of the contract, tendered prices, the quantity, etc.
(2) In a competitive tendering procedure that imposes a burden on the National Treasury, any of the following tenderers shall be determined as a successful tenderer:
1. A person who is recognized as capable of performing a contract and tenders the lowest price;
2. A person whose tender offer is the most favorable to the State according to the evaluation criteria specified in the tender notice or tender guidance;
3. A person whose tender offer most closely conforms to criteria, where such criteria are specially prescribed by Presidential Decree, taking into consideration the nature, size, etc. of the contract.
(3) Notwithstanding paragraph (2), the head or contracting official of each central government agency shall not determine a person who tenders less than 98/100 of the sum of the following expenses as a successful tenderer, in cases of a competitive tendering procedure for construction works whose estimated price is less than 10 billion won: <Added on Nov. 26, 2019>
1. Material costs, labor costs, and expenses;
2. Value-add tax on the costs under subparagraph 1.
(4) Notwithstanding the subparagraphs of paragraph (2), the head of each central government agency or a contracting official may designate 2 or more successful tenderers if it is deemed difficult to achieve the purpose of the contract with a single successful tenderer, due to the nature, type, quantity, or other requirements prescribed by Presidential Decree. In such cases, the head of the central government agency or the contract management public official shall clearly state in the bid notice or bid notification that 2 or more successful tenderers may be designated. <Added on Mar. 26, 2024>
[This Article Wholly Amended on Dec. 18, 2012]
Article 11(Preparation of contract and formation of contract) #
(1) When the head or contracting official of each central government agency enters into a contract, he or she shall prepare a contract, clearly specifying the following matters therein; provided, preparing a contract may be omitted in the cases prescribed by Presidential Decree:
1. Purpose of the contract;
2. Amount of the contract;
3. Period of performance;
4. Contract bond;
5. Burden of risk;
6. Penalty for delay;
7. Other necessary matters.
(2) Where a written contract is prepared under paragraph (1), the contract shall be finalized when the public official in charge and the contracting party affix their names and seals or sign the contract.
[This Article Wholly Amended on Dec. 18, 2012]
Article 12(Contract bond) #
(1) The head or contracting official of each central government agency shall require a person who intends to enter into a contract with the State to pay a contract bond; provided, a person may be wholly or partially exempted from a contract bond in the cases prescribed by Presidential Decree.
(2) The amount of a contract bond under paragraph (1), the method of payment thereof, and other necessary matters shall be prescribed by Presidential Decree.
(3) If the contracting party fails to perform his or her obligation under the contract, the head or contracting official of each central government agency shall vest the relevant contract bond in the National Treasury. In such cases, when the contracting party has been wholly or partially exempted from a contract bond under the proviso of paragraph (1), he or she shall vest the amount equivalent to the contract bond in the National Treasury, as prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 18, 2012]
Article 13(Supervision) #
(1) If the head or contracting official of each central government agency deems it necessary for the purpose of ensuring proper performance of a contract when he or she enters into a contract for construction works, manufacturing, or services, he or she shall directly supervise the performance of the contract in accordance with the contract, design documents, and other relevant documents or authorize public officials of the central government agency to supervise the performance of the contract as necessary; provided, a specialized institution may be designated separately for supervision, as necessary, in cases of a contract prescribed by Presidential Decree.
(2) A person who supervises the performance of a contract under paragraph (1) shall make records of supervision.
[This Article Wholly Amended on Dec. 18, 2012]
Article 14(Inspections) #
(1) When the contracting party fully or partially performs the contract, the head or contracting official of each central government agency shall directly inspect the performance of the contract in accordance with the contract, design documents, and other relevant documents or authorize public officials of the central government agency to inspect the performance of the contract as necessary; provided, a specialized institution may be designated separately to conduct inspections, as necessary, in cases of a contract prescribed by Presidential Decree.
(2) A person who conducts an inspection under paragraph (1) shall make records of inspection; provided, making records of inspection may be omitted in the cases prescribed by Presidential Decree.
(3) Notwithstanding paragraph (1), the head or contracting official of each central government agency may skip the inspection under the same paragraph, if the goods subject to inspection are the products prescribed by Presidential Decree, such as products, the quality of which has been certified under any other statutes or regulations or products manufactured by a person whose capability of quality management has been accredited.
(4) In cases of a contract for the purchase of goods or a contract for the manufacturing of goods, expenses incurred in inspections or tests necessary due to the nature of the goods, and damage caused by deformation or destruction in the course of such inspections or tests shall be borne by the contracting party.
[This Article Wholly Amended on Dec. 18, 2012]
Article 15(Payment of price) #
(1) In cases of a contract for construction works, manufacturing, purchasing, or services or any other contract that imposes a burden on the National Treasury, the head or contracting official of each central government agency shall pay the price therefor after conducting an inspection or making an inspection record; provided, this shall not apply to cases where an international practice or other unavoidable cause exists.
(2) The price under paragraph (1) shall be paid by the deadline prescribed by Presidential Decree after the date on which the contracting party submits an invoice for the payment of the price, but interest for the number of days the payment is overdue shall be paid, as prescribed by Presidential Decree, if it is impracticable to pay the price by the deadline.
(3) Interest accruing under paragraph (2) may be offset against the penalty for delay under Article 26 for an identical contract.
[This Article Wholly Amended on Dec. 18, 2012]
Article 16(Advance payment of price) #
Except as otherwise provided in any other statute or regulation, the head or contracting official of each central government agency shall require the contracting party for the sale or lease of an asset or for the supply of services or any other contract that becomes a source of revenue to pay the price in advance.
[This Article Wholly Amended on Dec. 18, 2012]
Article 17(Warranty of contract for construction works) #
When the head or contracting official of each central government agency concludes a contract for construction works, he or she shall specify the term of warranty. In such cases, the term of warranty shall not exceed the period specified in Article 671 of the Civil Act.
[This Article Wholly Amended on Dec. 18, 2012]
Article 18(Warranty bond) #
(1) In cases of a contract for construction works, the head or contracting official of each central government agency shall require the contracting party to pay a warranty bond to guarantee the repair of defects in the construction works; provided, the contracting party may be wholly or partially exempted from a warranty bond in the cases prescribed by Presidential Decree.
(2) The amount of the warranty bond under paragraph (1), the timing for the payment, the method of payment, the period of deposit thereof, and other necessary matters shall be prescribed by Presidential Decree.
(3) Article 12(3) shall apply mutatis mutandis to the vesting of a warranty bond in the National Treasury; provided, where the budget for the repair of defects is lacking or insufficient, the warranty bond may be used directly for the repair of such defects.
(4) The remainder of a warranty bond, left over after using it pursuant to the proviso of paragraph (3), shall be transferred to the National Treasury.
[This Article Wholly Amended on Dec. 18, 2012]
Article 19(Adjustment of contract amount according to price fluctuation) #
Where it is necessary to adjust the contract amount due to a price fluctuation, a design modification, or other modifications of the terms and conditions of a contract (including cases caused by force majeure such as an act of God or war) after concluding a contract for construction works, manufacturing, or services, or any other contract that imposes a burden on the National Treasury, the head or contracting official of each central government agency shall adjust the contract amount, as prescribed by Presidential Decree. <Amended on Nov. 26, 2019>
[This Article Wholly Amended on Dec. 18, 2012]
Article 20(Conclusion of contract before beginning of fiscal year) #
Notwithstanding Article 20 of the Management of National Funds Act, the head or contracting official of each central government agency may conclude a contract in advance before the beginning of a fiscal year within budgetary limits finalized for the pertinent year, as prescribed by Presidential Decree, if the contract may not be suspended due to its nature, such as a contract for lease, transportation, or storage.
[This Article Wholly Amended on Dec. 18, 2012]
Article 21(Continuing expenditure and long-term continuing contract) #
(1) With regard to a project involving continuing expenditure, as defined under Article 23 of the National Finance Act, the head or contracting official of each central government agency shall specify the total amount and annual installments in concluding a contract.
(2) The head or contracting official of each central government agency may enter into a long-term continuing contract, if it is necessary in its nature for the purpose of maintaining a contract for years or if it takes years to perform a contract, such as a contract for lease, transportation, storage, or supply of electricity, gas, or water. In such cases, the head or contracting official of each central government agency shall ensure that such contract be performed within budgetary limits for each fiscal year. <Amended on Jun. 9, 2020>
[This Article Wholly Amended on Mar. 21, 2012]
Article 22(Unit price contracts) #
If it is necessary to continuously maintain a contract for manufacturing, repair, processing, trading, supply, or use for a certain period, the head or contracting official of each central administrative agency may enter into a unit price contract within budgetary limits for each year.
[This Article Wholly Amended on Dec. 18, 2012]
Article 23(Contract by rough estimate) #
(1) If the head or contracting official of each central administrative agency is unable to set a price in advance for any of the following contracts, he or she may enter into a contract by rough estimate, as prescribed by Presidential Decree:
1. A contract for manufacturing a prototype for development;
2. A service contract for testing, survey, or research;
3. A contract entered into with a public institution, as defined under the Act on the Management of Public Institutions, for entrustment or delegation of performance under a relevant statute or regulation;
4. A contract for urgent disaster recovery with no time to spare.
(2) Matters necessary for the procedure, guidelines, etc. for the ex post facto settlement of a contract made by rough estimate under paragraph (1) shall be prescribed by Presidential Decree.
(3) When the head or contracting official of each central administrative agency enters into a contract by rough estimate under paragraph (1), he or she shall notify prospective tenderers of the procedure, guidelines, etc., for the ex post facto settlement under paragraph (2) through public tender notice, etc.
[This Article Wholly Amended on Dec. 18, 2012]
Article 24(Consolidated contract) #
(1) With regard to construction works in which another government agency, a local government, a public institution, or a quasi-government agency prescribed in the Act on the Management of Public Institutions is involved in an identical place, the head or contracting official of each central administrative agency may enter into a contract for placing an order jointly with the authorities involved (hereinafter referred to as "consolidated contract").
(2) The head of the authorities involved in entering into a consolidated contract shall cooperate in matters necessary for entering into the contract.
[This Article Wholly Amended on Dec. 18, 2012]
Article 25(Joint contract) #
(1) The head or contracting official of each central administrative agency may enter into a joint contract with 2 or more contracting parties if he or she deems it necessary with regard to a contract for construction works, manufacturing, or any other purpose.
(2) A contract prepared under paragraph (1) shall be finally formed when the public official in charge and all contracting parties print their names and affix their seals or signatures thereon.
[This Article Wholly Amended on Dec. 18, 2012]
Article 26(Penalty for delay) #
(1) If the contracting party delays his or her performance of the contract without good cause, the head or contracting official of each central administrative agency shall require the contracting party to pay a penalty for delay.
(2) The amount of a penalty under paragraph (1), the method of payment, and other necessary matters shall be prescribed by Presidential Decree.
(3) The proviso of Article 18(3) shall apply mutatis mutandis to the penalty for delay under paragraph (1).
[This Article Wholly Amended on Dec. 18, 2012]
Article 27(Restrictions on qualifications for participation by inappropriate business entities in tendering procedures) #
(1) If the head of each central government agency finds a person falling under any of the following (hereinafter referred to as "inappropriate business entity"), he or she shall place restrictions on qualification for participation by such inappropriate business entity in a tendering procedure for a period not exceeding 2 years, as prescribed by Presidential Decree, and shall immediately notify the heads of other central government agencies of the restrictions; in such cases, upon receipt of such notice, the heads of the central government agencies shall place restrictions on qualifications for participation by such inappropriate business entity in tendering procedures, as prescribed by Presidential Decree: <Amended on Dec. 18, 2012; Mar. 2, 2016; Jul. 26, 2017; Jun. 9, 2020; Oct. 20, 2020; Jan. 5, 2021; Mar. 28, 2023; Jul. 18, 2023>
1. A person who acts in a poor, coarse, or improper manner or has engaged in an illegal act in the course of fulfilling a contract;
2. A person who colludes with another tenderer or the contracting party during the competitive bidding process, contract conclusion, or performance of a contract, by prearranging bid prices, contract volume, or the terms of the contract, or by conspiring to have a specific person selected as the successful bidder or supplier;
3. A person who subcontracts in violation of the restrictions on subcontracts under the Framework Act on the Construction Industry, the Electrical Construction Business Act, the Information and Communications Construction Business Act, the Software Industry Act, and other Acts (excluding the cases of violating the duty of notifying subcontracts) and a person who subcontracts without the approval of the ordering agency or who changes the condition of subcontracts approved by the ordering agency;
4. A person who has caused damage to the State in the process of bidding, winning a contract, or concluding or performing a contract by fraud or other improper act;
5. A person against whom a request is made by the Fair Trade Commission to restrict qualifications for participation in a tendering, due to the violation of the Monopoly Regulation and Fair Trade Act or the Fair Transactions in Subcontracting Act;
6. A person against whom a request is made by the Minister of SMEs and Startups to restrict qualifications for participation in a tendering procedure under Article 28-2(2) of the Act on the Promotion of Collaborative Cooperation between Large Enterprises and Small-Medium Enterprises;
Article 27-2(Penalty surcharges) #
(1) Where restrictions shall be placed on qualifications for participation by an inappropriate business entity in tendering procedures under Article 27(1), the head of each central government agency may impose a penalty surcharge not exceeding the amount specified in any of the following subparagraphs, whichever is relevant, in substitution for restrictions on qualifications for participation in tendering procedures in any of the following cases:
1. Cases prescribed by Presidential Decree where violation by the inappropriate business entity was caused by an evidently unforeseeable change in the economic situation or where the liability of the inappropriate business entity is insignificant: An amount equivalent to 10/100 of the amount of the contract (referring to an estimated price, if no contract has been entered into yet) involved in the violation;
2. Cases prescribed by Presidential Decree where it is evident that a competitive tendering procedure is not effectively completed due to restrictions on qualifications for participation in tendering procedures: An amount equivalent to 30/100 of the amount of the contract (referring to an estimated price, if no contract has been entered into yet) involved in the violation.
(2) Deleted. <Jul. 18, 2023>
(3) The amount of a penalty surcharge under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree.
(4) If a person upon whom a penalty surcharge has been imposed under paragraph (1) fails to pay the amount by the deadline for payment, the penalty surcharge shall be collected in the same manner as delinquent national taxes are collected.
[This Article Added on Dec. 18, 2012]
Article 27-3 #
Deleted. <Jul. 18, 2023>
Article 27-4(Participation in tendering on condition of direct payment of subcontract price) #
(1) When the head of each central government agency finds that the contracting party violates Article 34(1) of the Framework Act on the Construction Industry or Article 13(1) or (3) of the Fair Transactions in Subcontracting Act, he or she shall notify the heads of other central government agencies of the contracting party and his or her violation without delay.
(2) Upon receipt of the notice given pursuant to paragraph (1), the head or contracting official of each central administrative agency shall permit the contracting party referred to in paragraph (1) to participate in a tendering procedure, only when the contracting party submits a letter of confirmation in which he or she agrees that the authorities awarding the contract shall pay subcontract amounts directly to a subcontractor in paying the contract price under Article 15(1), if such contracting party intends to make a tender in a tendering procedure for which public tender notice is given within one year from the date of such notice.
[This Article Added on Dec. 18, 2012]
Article 27-5(Restrictions on qualifications for participation by persons who have evaded taxes in tendering procedures) #
(1) The head of each central administrative agency shall place restrictions on qualifications for participation by a person who has evaded taxes, etc. as prescribed by Presidential Decree and for whom two years have not elapsed from the date on which the judgment of conviction becomes final.
(2) Article 27(3) shall apply mutatis mutandis in cases of the conclusion of a negotiated contact with a person who has been restricted from participating in a tender under paragraph (1).
[This Article Added on Aug. 13, 2013]
Article 28(Raising objections) #
(1) In the process of concluding a government procurement contract of at least the amount prescribed by Presidential Decree (Article 4 shall apply in cases of an international tendering procedure), a person who has been disadvantaged by any of the following acts conducted by the head or contracting official of the relevant central government agency may raise an objection, seeking revocation or rectification of such act: <Amended on Nov. 26, 2019>
1. Matters relating to the scope of a government procurement contract for which international tendering is called under Article 4(1);
1-2. Matters relating to unfair special terms and conditions, etc. under Article 5(3);
2. Matters relating to qualifications for participation in tendering procedures under Article 7;
3. Matters relating to a public tender notice, etc. under Article 8;
4. Matters relating to the determination of a successful tenderer under Article 10(2);
5. Other matters prescribed by Presidential Decree.
(2) An objection shall be raised to the head of the relevant central government agency within 20 days from the date the act constituting the cause for the objection occurred or within 15 days from the date the person who raised the objection becomes aware that such act was conducted. <Amended on Mar. 31, 2020>
(3) The head of the relevant central government agency shall examine an objection within 15 days from the date the objection is filed, take necessary measures such as rectification, and notify the applicant of the results thereof. <Amended on Mar. 31, 2020>
(4) A person who has an objection to a measure taken under paragraph (3) may file a request for re-deliberation, seeking conciliation by the State Contract Disputes Conciliation Committee under Article 29, within 20 days from the date he or she is notified of such measure. <Amended on Mar. 31, 2020>
[This Article Wholly Amended on Dec. 18, 2012]
Article 28-2(Agreement on methods of dispute settlement) #
(1) The head or a contracting official of each central government agency may determine how to resolve disputes among the parties to the contract at the time of signing a contract, to efficiently resolve disputes that may occur under the contract to which the State is a party.
(2) The method of resolving disputes under paragraph (1) shall be determined by agreement among the parties to the contract:
1. Conciliation by the State Contract Disputes Conciliation Committee under Article 29;
2. Arbitration under the Arbitration Act.
[This Article Added on Dec. 19, 2017]
Article 29(State Contract Disputes Conciliation Committee) #
(1) In order to examine and mediate disputes that may occur under the contract to which the State is a party, the Ministry of Economy and Finance shall establish the State Contract Disputes Conciliation Committee (hereinafter referred to as the "Committee") under its jurisdiction. <Amended on Dec. 19, 2017; Oct. 1, 2025>
(2) The Committee shall be comprised of not more than 15 persons, including one chairperson. <Amended on Mar. 2, 2016>
(3) The chairperson of the Committee shall be a member of the Senior Executive Service designated by the Minister of Economy and Finance, and the members shall be commissioned by the Minister of Economy and Finance from among those belonging to the central administrative agency prescribed by Presidential Decree, who are designated by the head of the relevant agency and any of the following persons, in consideration of gender: <Added on Mar. 2, 2016; Oct. 1, 2025>
1. A person who has worked as an associate professor or at a higher position in law, finance, trade, or accounting at universities and colleges under the Higher Education Act for not less than five years;
2. A person qualified as a lawyer, who has been engaged in or once engaged in the affairs relevant to the qualifications;
3. A person who has abundant knowledge of and experience in the affairs of accounting and procurement contracts of the Government, who is deemed to satisfy the standards prescribed in subparagraph 1 or 2.
(4) The term of office of a commissioned member under the subparagraph of paragraph (3) shall be 2 years, and his or her term may be renewed. <Added on Mar. 2, 2016>
(5) The term of a member newly commissioned due to the resignation of a commissioned member referred to in the subparagraphs of paragraph (3) shall be the remaining term of his or her predecessor. <Added on Mar. 2, 2016>
(6) The commissioned member under the subparagraphs of paragraph (3) shall not be dismissed against his or her will during his or her term, except where he or she is sentenced to imprisonment without labor or heavier punishment or is not able to conduct his or her duties due to mental and physical weakness for a long term. <Added on Mar. 2, 2016>
(7) No member of the Committee shall participate in the examination and conciliation of the items directly concerned with the member. <Added on Mar. 2, 2016>
(8) Except as provided in paragraphs (2) through (7), the procedures for the operation, examination, and conciliation of the Committee and other necessary matters shall be prescribed by Presidential Decree. <Added on Mar. 2, 2016>
Article 30(Suspension of contracting procedures) #
(1) Where the Committee commences examination and conciliation, it shall notify the petitioner and the head of the competent central government agency of the commencement. <Amended on Jun. 9, 2020>
(2) The Committee may issue an order to defer the relevant tendering procedure or suspend the signing of the relevant contract until conciliation is completed if it deems it necessary to do so, considering the opinions from the head of the competent central government agency.
[This Article Wholly Amended on Dec. 18, 2012]
Article 31(Examination and conciliation) #
(1) The Committee shall conduct examination and conciliation within 50 days from the date a petition for examination and conciliation is filed, unless there is a compelling reason not to do so. <Amended on Dec. 19, 2017>
(2) The Committee shall give opportunities to express opinions to a petitioner and the head of the competent central government agency before closing examination and conciliation and may summon the petitioner, the head of the competent central government agency, their representatives, and witnesses or relevant experts to the Committee to hear their opinions, if necessary. <Added on Mar. 31, 2020>
(3) If neither the petitioner nor the head of the competent central government agency raises an objection against the conciliation concluded pursuant to paragraph (1) within 15 days after conciliation is completed, the conciliation shall be as effective as consent judgment. <Amended on Mar. 31, 2020>
[This Article Wholly Amended on Dec. 18, 2012]
Article 32(Training of contracting officials) #
The Government may train contracting officials to improve their qualities.
[This Article Wholly Amended on Dec. 18, 2012]
Article 33(Submission of statements on results of contracts) #
The head of each central government agency shall submit a report on performance of contracts to the Minister of Economy and Finance, as prescribed by Presidential Decree. <Amended on Oct. 1, 2025>
[This Article Wholly Amended on Dec. 18, 2012]
Article 34(Consultation on statutes or regulations regarding contracts) #
When the head of each central government agency drafts a statute or regulation regarding contracts, he or she shall have a prior consultation with the Minister of Economy and Finance thereon. <Amended on Oct. 1, 2025>
[This Article Wholly Amended on Dec. 18, 2012]
Article 35(Legal fiction as public officials for purpose of applying penalty provisions) #
A person who is not a public official among members of the following committees shall be deemed a public official in application of Articles 129 through 132 of the Criminal Act:
1. Deleted; <Jul. 18, 2023>
2. The State Contract Disputes Conciliation Committee established under Article 29;
3. Committees prescribed by Presidential Decree, which perform the pre-qualification and advisory services on tenders, tender acceptance, or signing or performing contracts.
[This Article Added on Dec. 30, 2014]