Gov't to buy more AI products, using public procurement as a growth platform
Korea's finance ministry will expand purchases of AI software and hardware through public procurement. The strategy is meant to back promising private companies and push Korea into the top tier of global AI by 2030.
The public procurement market includes 620,000 suppliers, is valued at 225 trillion won ($155.1 billion), and accounts for 9 percent of GDP. The state intends to use this channel as a launchpad for startups and SMEs that often struggle to get in front of public buyers.
Minister of Economy and Finance Koo Yun-cheol said the government will act as a leading buyer of AI-based goods and services. He emphasized closer public-private cooperation as the U.S. and China intensify competition in AI.
What changes in procurement
- Preferential treatment for AI in "innovation-driven" purchases: Priority will be given to categories such as medical software, care robots, wearable devices, illegal camera detection systems, and recycling waste-sorting equipment, reflecting demand across ministries, agencies, and state-run firms.
- Growth target: AI products accounted for 18% of innovation-driven purchases in 2025; the share is slated to reach 25% by 2027.
- Faster access to bidding: AI products will be easier to register on the online procurement platform, speeding up participation.
- Higher direct-purchase threshold: The bidding threshold will be raised so higher-value AI products can be procured faster without extra rounds of competition.
- Evaluation advantages: AI-certified products and companies will receive additional credibility points during reviews.
- AI agents for operations: A new program will help review proposals, identify feasible projects, and compare products to support fair, efficient decision-making.
What government buyers should do next
- Match upcoming program needs to the priority AI categories and brief your program offices on the new incentives.
- Identify quick wins that fit the higher threshold (e.g., pilots and modular upgrades) and align budgets early.
- Refresh evaluation templates to incorporate certification points and clear criteria for reliability, explainability, security, and lifecycle support.
- Prepare data management and privacy checklists; loop in legal and security teams before RFP release.
- Encourage startups and SMEs to register on the online platform and join pre-bid briefings or market-sounding sessions.
- Plan a controlled trial of the AI agents tool once available, document outcomes, and feed improvements back into your procurement playbooks.
For policy updates and system guidance, check the Public Procurement Service website: PPS (English).
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