The size of national procurement conducted by the Public Procurement Service (PPS) is 68.89 trillion won in 2009 and 52.28 trillion won in 2010, which accounts for 36.2 percent of total public procurement market.

  Because of its huge purchasing power, the policy and program operation of the PPS highly affect the business volume of small and medium-sized enterprises as well as conglomerates, and also play an important role in the governmental policy of supporting small and medium-sized enterprises.

  Government procurement programs become more significant in national economy and its rapid change take place in the way of carrying out procurement services. After monitoring major government procurement functions, this program evaluation report points out some problems of the national procurement programs, and suggests some policy recommendations for more effective and efficient procurement.

  According to the evaluation, regional discrepancies in terms of purchasing commodities from small and medium-sized enterprises are so deepening that it is necessary to make objective guidelines in supporting those enterprises. It is also pointed out in this report that some measures are needed to foster participation of small and medium-sized enterprises and local firms in the turnkey-type construction.

  Lastly, this report stresses necessity to set an appropriate revenue rate on stockpiling raw materials, and to share procurement statistics among procurement agencies for efficient procurement policy.