The current Act designates the products directly produced and provided by small to medium enterprises as competitive products between small to medium enterprises and requires limited competitive tendering, which only includes small to medium enterprises, to enter into a procurement contract.

However, it is a reality where it is not easy for young people’s startups to survive even in competition between small to medium enterprises due to their disadvantages in human and financial resources in their early days. Young people’s startups often fail to overcome the “Death Valley” in their early days and go out of business, which calls for corrective action.

In this regard, this Act aims to allow projects awarded by the central and local governments and their public corporations to make more than a certain percentage of purchases of startup products from young business startups (Article 5-2 (5) newly inserted).

Define prioritized purchase by public institutions (Article 5-2)