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National Assembly Legislation

  • Act on Contracts to which the State is a Party
    • Competent Ministry : Ministry of Economy and Finance
    • Advance Publication of Legislation : 2020-07-14
    • Opinion Submission Deadline : 2020-07-28
Reasons for Proposal

The current Act allows only eligible persons to participate in competitive bidding for the contracts to which the heads of each central office is a party, in principle, so inappropriate business entities are restricted from participating in any bidding for 2 years.

However, if the State is to improve and actively deal with the enterprise’s employment environment, the issue of turning non-regular workers into regular ones, and workers’ safety and health issues, it has been pointed out that it is necessary to enter into a contract considering the enterprise’s employment environment when the State enters into a contract or restrict such enterprise from participating in bidding.

This Act aims to consider the enterprise’s employment status and the percentage of non-regular workers turned into regular ones when the State enters into a contract and enshrine in the upper law a provision that defines those neglecting safety and health action and causing material harm to workers as inappropriate business entities, and allow the State to take the lead in improving the enterprise’s employment environment (Articles 7 (4) and 27 (1) 8).


Major Provisions

Restrict participation in bidding by inappropriate business entities (Article 27)

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