1) Reasons for Proposal
The Act on Facilitation of Purchase of Small and Medium Enterprise-manufactured Products and Support for Development of Their Markets (partially amended on April 7, 2020; to be enforced on October 8, 2020) was amended to newly prepare the Public Procurement Collaborative Cooperation Support System, which allows large enterprises to support supply by small and medium enterprises in the public procurement market, and specify the legal basis for a technology development product pilot purchase program and an on-site verification technology development product purchase program to encourage public institutions to actively purchase products developed with the technology of small and medium enterprises-. This Partial Amendment aims to define specific standards and procedures required to operate the above system as designated by the foregoing Act.
2-1) Major Provisions (Enforcement Decree)
A. Define the types of collaborative cooperation and violations under the Public Procurement Collaborative Cooperation Support System (Article 17-2 newly inserted)
1) It is necessary to specifically define the types of collaborative cooperation and material violations as additional types of collaborative cooperation and material violations, in addition to those defined in the Act, that are prescribed by Presidential Decree.
2) Add types of collaborative cooperation between companies that have different technologies or items that apply to one product, or between companies that innovate existing technologies or have technologies that create new socioeconomic value, and define the violation of a collaborative cooperation contract between enterprises and technology exploitation between enterprises as material violations of collaborative cooperation.
B. Define the selection criteria and procedure for support of recipients under the Public Procurement Collaborative Cooperation Support System (Articles 17-3 and 17-4 newly inserted)
Include the technological innovation and growth potential of the product according to the market outlook, the clarification and implementation possibility of the business plan, and feasibility of support for small and medium enterprises by large enterprises in the selection criteria for support recipients, and define the selection and evaluation procedure that reflects experts’ feedback in determining the selection criteria.
C. Entrust authority to the distributors of small and medium enterprise or startup products (Article 27 (2))
Entrust to the distributors of small and medium enterprise or startup products under Article 69 (1) of the Small and Medium Enterprises Promotion Act the authority of the Minister of SMEs and Startups to provide third parties with a list of enterprises selected for the Collaborative Cooperation Support System and their products, receive application forms, assess selection, and evaluate performance to operate the Collaborative Cooperation Support System, and investigate the status of some items under the Collaborative Cooperation Support System.
D. Define eligibility for a technology development product pilot purchase program and the selection criteria for products to be purchased (Articles 13-2 through 13-4 newly inserted)
Provide eligibility to participate in a technology development product pilot purchase program to small and medium entrepreneurs under the Framework Act on Small and Medium Enterprises and business founders under the Support for Small and Medium Enterprise Establishment Act who manufacture and produce products applicable to the program, and consider the innovation, market entry, and growth potential of the product, the participating enterprise’s product production capability, and other needs for pilot purchase support in selecting products to be purchased.
E. Define a an on-site verification technology development product purchase support procedure (Article 13-5 newly inserted)
Allow the Minister of SMEs and Startups to review an on-site verification request for a particular product by small and medium entrepreneurs or business founders who manufacture and produce the product, and request the head of a public institution to support on- site verification if deemed necessary.
F. Define the scope of work and designation requirements of the designated agency (Article 13-6 newly inserted)
Define the scope of work for an agency designated to a technology development product pilot purchase program and on-site verification technology development product purchase support, and require the Minister of SMEs and Startups to determine the designated agency through a process of receiving designation application forms from agencies or organizations that mainly support sales channels for small and medium enterprises.
2-2) Major Provisions (Enforcement Rule)
A. Application form to participate in a technology development product pilot purchase program (Article 9-3 and Attached Forms 9 and 10 newly inserted)
B. Application form to participate in on-site verification technology development product purchase support (Article 9-4 and Attached Form 11 newly inserted)
C. Application form for the designated agency in a technology development product pilot purchase program and on-site verification technology development product purchase support (Article 9-5 and Attached Form 12 newly inserted)
D. Application form to participate in the Public Procurement Collaborative Cooperation Support System (Article 14-2 and Attached Form 13 newly inserted)
