5. In each of the following cases where it is judged that it is inefficient to conclude a contract based on competition in light of the purpose and nature of the contract:

G. In case of purchasing an innovative product according to Article 27, Paragraph 1 of the 「Act on Procurement Business」

※ Article 26 of the Enforcement Decree of the Act on Contracts to which the State is a Party, dated October 1, 2020

When the head of a public institution intends to conclude a procurement contract, he/she should make efforts to prioritize the purchase of innovative products.

The Minister of Strategy and Finance may check the purchase performance to increase the purchase of innovative products.

※ Articles 4 and 5 of the Ministry of Strategy and Finance’s regulations on designation of innovative products and promotion of purchase dated March 8, 2021

To create demand for technology development products developed by SMEs, prepare necessary support measures such as preferential purchase of these products

In order to increase the purchase of technology development products developed by small and medium-sized businesses, public institutions or other persons prescribed by Presidential Decree are requested to take necessary measures, such as preferential purchase. (Government-funded institutions, educational institutions, etc.)

※ Small and Medium Business Product Market Support Act, dated June 9, 2021

Designation of technology development products subject to priority purchase

1. Products that have received performance certification in accordance with Article 15 (1) of the Act

2. Products designated as excellent procurement goods in accordance with Article 30 (1) of the 「Enforcement Decree of the Procurement Business Act」

3. Products certified as new products in accordance with Article 16 (1) of the 「Industrial Technology Innovation Promotion Act」

4. Software that has received quality certification in accordance with Article 20 (1) of the 「Software Promotion Act」

5. Other products designated by the Minister of SMEs and Startups in consultation with the heads of related central administrative agencies.

Target purchase ratio of technology development products subject to pre-purchase ⟶ 15% or more of the purchase amount of SME products

※ Enforcement Decree of the Small and Medium Business Product Market Support Act, dated February 5, 2021

Products using new technologies, products that have been successfully developed in new product development projects with purchase conditions, green certified products, products designated as good procurement joint trademarks, products designated as commercial convergence products, products designated as commercial convergence products, selected products for joint R&D with small and medium-sized enterprises, performance sharing technology development task products, ICT convergence quality certification products, excellent industrial design products, innovative products, excellent water industry equipment and materials

※ Article 3 of the Enforcement Rules on the Operation of Preferential Purchase System for SME Technology Development Products, dated March 5, 2021