The government will raise the lower bid limit for goods and services in the public procurement market across the board by 2 percentage points to resolve the chronic problem of "low-price awards." The lower bid limit is the minimum award price standard applied when public institutions purchase goods or place service orders; the lower this standard is, the easier it is for so-called "dumping awards," in which companies win contracts at unreasonably low prices, to occur.
The Ministry of Economy and Finance said Second Vice Minister Heo Jang presided over the "first Procurement Policy Review Committee of 2026" on the 20th and reviewed and approved public procurement system improvement measures that include this content.
◇ Technical services adjusted for the first time in 23 years… goods and general services in 9 years
The lower bid limit for technical services (under 1 billion won) will be adjusted (up 2 percentage points) for the first time in 23 years since 2003. This partly addresses a long-standing wish of small and midsize companies in design and engineering. Goods and general services will also be raised by the same margin for the first time in 9 years since 2017.
After the adjustment, the lower bid limit will be 82.495%–89.995% for goods and general services, and 81.995%–89.745% for technical services. For simple labor services such as cleaning, security, and facility management, it will rise from the current 87.995% to 89.995%, which is expected to strengthen wage guarantees for the workers involved. However, areas limited to competition among small and midsize companies are excluded from this round of adjustments.
The construction sector has already been raised by 2 percentage points since Jan. 30, and this adjustment completes the increase across all sectors. The revised standards will take effect starting in May.
◇ Revamping the national contract dispute mediation system… introducing public defenders for SMEs
The government also confirmed that demand for dispute mediation is rising, with the National Contract Dispute Mediation Committee handling 56 cases last year, a record high, and decided to further strengthen the system this year by revising the National Contract Act. With a 50.0% claimant acceptance rate and a 35.7% mediation agreement rate last year, the system has become a practical means of remedy; the plan is to refine related procedures so more corporations can choose it over lawsuits.
In monetary disputes requiring evidence verification, the committee will newly gain the authority to render decisions directly, and a system to review unfair clauses by ordering agencies will be established. Public defenders for small and midsize companies lacking legal knowledge will also be introduced.
◇ Target for public purchases of innovative products expanded sharply by 56% from a year earlier
At the meeting, the public purchase target for innovative products was set at about 1.25 trillion won. That is 56.5% higher than the previous year's target of 798.5 billion won, and the government plans to raise purchase ratios by institution, adopt an artificial intelligence (AI)-based search system, and operate dedicated teams to achieve 3 trillion won annually by 2030.