The entire process of procurement affairs, such as supplier registration, bidding, contracting, inspection and payment are handled online on the Internet. KONEPS serves as the single window, through which bidding information of all public institutions is announced. All public organizations can participate in bidding through a one-time registration process to KONEPS. By connecting itself to 120 procurement systems of government institutions, KONEPS provides one stop procurement services. KONEPS services are also available on a mobile platform, such as the mobile phone bidding service. Goods management affairs are handled by establishing an RFID-based management system.
Electronic procurement in Korea has grown to become a part of a big world-scale market, where 44,000 public institutions and 220,000 suppliers participate with transaction volume reaching KRW67 trillion a year.
Digitalized procurement businesses greatly increase productivity and efficiency. The number of contract processing per person increased from 208 (1997) to 740 (2012) after the introduction of an e-procurement system. Illegal attempts are completely blocked with the help of fingerprint scan-based e-bidding, and online business processes also decrease face-to-face contacts, further increasing transparency and integrity.
The procurement integrity level increased in 2012 by 20% from 2002: 6.8 points (2002), and 8.1 points (2012). Improved processes from KONEPS brought simplified procedures and yearly savings of KRW8 trillion in travel costs of suppliers to government offices. Public-sector cost-saving: KRW1.4 trillion; private-sector cost saving: KRW6.6 trillion as studied by Hanyang Univeristy. The system was exported to Pakistan (2005), Vietnam (2005, 2009), Mongolia (2007, 2010), Georgia (2007), Costa Rica (2009), Uzbekistan (2009), and Tunisia (2011). As a result, the system has received the following awards: UN Public Service Award (2003), World Information Technology and Services Alliance (WITSA), ‘Global IT Excellence Award’ (2006), and Asia Pacific Council for Trade Facilitation and Electronic Business (AFACT) ‘E-Asia Award’ (2007).
