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National Assembly Legislation

  • [Other] Act on Contracts to which a Local Government is a Party
    • Competent Ministry : Ministry of the Interior and Safety
    • Advance Publication of Legislation : 2025-11-20
    • Opinion Submission Deadline : 2025-12-04
Reasons for Proposal

The current laws allow for the restriction of bid participation eligibility based on the location of the principal office when concluding general competitive contracts below a certain amount. To participate in such bids, a company's principal office, as registered in the corporate registry, must be located within the relevant local government from the day before the tender notice date until the tender date.


However, there is a problem: some companies relocate their principal office to the required region before participating in the bid and then move it back to another region after winning the contract. This practice undermines fair bidding and results in damage, such as infringing upon the bid opportunities of genuine locally based businesses.


Therefore, this proposal aims to establish fair bidding order and protect local businesses (by establishing new Article 9, Paragraph 6). Specifically, in cases where bid participation eligibility is restricted based on the location of the principal office, the successful bidder will be prohibited from changing the location of its principal office (as registered in the corporate registry) until the contract execution is complete.

Major Provisions

Imposition of an Obligation on the Successful Bidder to Prohibit the Change of the Principal Office Location until the Completion of Contract Execution, in Cases where Bid Participation is Restricted based on the Principal Office Location in the Corporate Registry (Draft Article 9, Paragraph 6).

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