Integrating Responsible Business Conduct in Public Procurement

Korea

1. Policy

The Korean CPB, the Public Procurement Service (PPS), applies the Act on Contracts to Which the State is a Party, which includes the following RBC objectives - additional frameworks apply, depending on the RBC objective:

Environment

Human rights

This aspect is also covered by the Act on the Safety of Products for Children.

Labour rights

The Labour Relations Decree and Minimum Wage Act applies.

People with disabilities

This aspect is also included in the Social Enterprise Promotion Act.

Long-term unemployed people

Gender considerations

Integrity

This aspect is also covered by the Integrity Agreement.

2. Implementation

Tender phase

• PPS gives extra points to suppliers that have either the Green Building Certification or the Green Certification and achieve high scores in Building Energy Efficiency Rating.

• PPS is entitled to give extra points to suppliers that have excellent records of employment management (e.g. reduced working hours, elder-friendly environment) and create job opportunities for the youth and people with disabilities. PPS can give penalty points in case of violation of employment-related obligations, (e.g. a delay in payment of wage).

• PPS gives advantages to suppliers that create job opportunities in general, but also that employ people with disabilities. Advantages are also given to women-owned enterprises and businesses that employ a high number of women.

• For veteran, welfare organisations and SMEs, PPS allocates certain goods or materials to be contracted with these kind of suppliers.

• On integrity, it is mandatory for suppliers to submit an integrity agreement.

Post-tender phase

• PPS manages payments for subcontractors online. PPS also operates the Subcontractor Payment Management System in the public sector to allow public buyers (end users) to monitor payments.

3. Good Practices

• To promote and enhance the employment of minorities, the PPS makes an announcement every month to disclosure contract awards to those enterprises that are headed by or hire socially disadvantaged groups.