ECONOMY

Public Procurement Service overhauls commercial software procurement rules

by
Lee Kwon-hyung
Published : Oct. 21, 2026 - 13:48:27
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Sweeping revision of MAS regulations focuses on reducing red tape and delivering tangible benefits for businesses

Innovative procurement.
Innovative procurement.

Ineffective regulations that have long burdened commercial software companies seeking to enter and manage products in the public procurement market are being swept away.

The Public Procurement Service said it has comprehensively revised its "Commercial Software Multiple Award Schedule (MAS) Operational Rules and Special Conditions" to dramatically lower barriers to market entry and reduce excessive administrative burdens on commercial software companies, with the new rules taking effect Tuesday.

The core of the revision is "business convenience" — the focus is on delivering tangible benefits that companies can actually feel.

Lower barriers, faster entry: market access dramatically eased

To help AI and other software products requiring policy-driven procurement promotion enter the market quickly, companies with a single registered representative will now be allowed to list products priced at 20 million won ($15,100) or less, making it easier for small firms with innovative technology to break into the public market.

The delivery-record requirement for social economy organizations — including social enterprises, community businesses and self-sufficiency enterprises — has also been abolished to support market entry by smaller, disadvantaged firms. In addition, the timing of mandatory education completion, a prerequisite for entering the procurement market, has been moved from before the eligibility assessment to before contract signing, allowing companies to prepare for the contracting process more quickly.

More flexible operations: system built to supply latest software versions on time

Restrictions on adding product items have been significantly relaxed. The restriction period for adding items has been shortened from 90 days to 50 days. For major upgrades, the restriction period has been eliminated entirely, and for minor upgrades with no price change, contract amendments can now be processed immediately — creating an environment in which companies can supply the latest software versions in a timely manner.

Unreasonable rules removed: easing burdens and protecting business rights

A broad range of regulations that had placed undue burdens on companies have also been overhauled. Rather than immediately suspending transactions with companies that fail to apply for interim inspections, a new procedure imposes a one-month sales suspension, giving companies a minimum safety net to respond.

The revision also prohibits procuring agencies from presenting unfair contract terms to contractors or making unreasonable demands in violation of contract conditions. When the Public Procurement Service calls on a procuring agency to correct unfair procurement practices, that agency is now obligated to comply, ensuring companies can have their legitimate rights protected.

Im Heon-eok, director general of the Technical Services Bureau at the Public Procurement Service, said the revision goes beyond simply changing rules. "This is about shifting the paradigm of public procurement from 'management' to 'support,'" he said. "We will continue to listen to businesses and build a company-friendly procurement environment where software firms can focus solely on technological innovation, free from regulatory constraints."


kwonhl@heraldcorp.com
This content was produced with the assistance of AI translation services.

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