November 24, 2024

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An infographic showing the Public Procurement Service's success in helping South Korean companies enter overseas procurement markets (Kim Sun-young/The Korea Herald)

South Korea's Public Procurement Service is spearheading efforts to help local businesses break into the global procurement market, valued at an estimated $12 trillion. Of this total, Korean companies are positioned to vie for a lucrative $2 trillion portion, presenting a significant opportunity for the nation's export economy, according to PPS's estimate.

Recently, the agency has been doubling down on its support for aspiring businesses. A host of comprehensive initiatives has already yielded tangible results.

At the forefront is the agency's flagship G-PASS program, which certifies companies demonstrating excellent export potential. Despite a challenging economic climate, G-PASS companies achieved an 8.3 percent growth in export earnings last year — hitting a record high. Program participation has surged from 95 companies in 2013 to 1,293 this year, marking a 19-fold increase.

Building on this momentum, the PPS has rolled out more diverse, collaborative measures this year. The agency has identified five industrial areas ripe for global expansion: eco-friendly materials, safety products, cutting-edge machinery, agriculture and biomedicine. It now offers targeted support for companies aiming to excel in these key sectors.

One notable initiative involves expanded collaboration with foreign entities to beta-test domestic goods. The total value of this program has increased nearly sixfold from last year, from 1.2 billion to 7 billion won ($870,000 to $5.1 million).

The PPS has also introduced vouchers for tailored consultation, providing logistical support and operational guidance for companies preparing for overseas expansion.

All these efforts are bolstered by a coordinated approach involving 12 government organizations, including the Ministries of Economy and Finance, Foreign Affairs and Employment and Labor. This closely connected network has created an efficient, one-stop support system for aspiring exporters while streamlining licensing and contractual arrangements.

"Our innovative procurement companies and their products are already making inroads into global markets," said PPS Director General for Planning and Coordination Choi In-seung. "Our goal is to support the growth and export of our SMEs and contribute to the country's overall export performance."

By Moon Ki-hoon (moonkihoon@heraldcorp.com), Lee Kwon-hyung (kwonhl@heraldcorp.com)