Korea's Move to e-Procurement
In 1997 the Korean government began reforming its notoriously complicated, nontransparent, corrupt public procurement system, introducing e-procurement to exploit the country's well-developed information and communications infrastructure. Through extensive business process reengineering and information strategy planning, the Public Procurement Service-the agency formerly responsible for buying government goods and services-has been transformed into a one-stop information center. E-procurement has generated numerous benefits, including: Enhanced transparency and public trust-by reducing contacts between officials and suppliers and by sharing information between government agencies and the public. Increased managerial efficiency-by achieving economies of scale in procurement, with an estimated $2.5 billion a year in savings from the $26 million investment. This note analyzes how Korea achieved these outcomes, the lessons of its experience, and the challenges that remain for its e-procurement system.
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Language: | English |
Published: |
World Bank, Washington, DC
2004-07
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Subjects: | ACCOUNTABILITY, BIDDING, CERTIFICATION, COMMUNICATIONS INFRASTRUCTURE, CORRUPTION, DECISIONMAKING, FEASIBILITY, GOVERNMENT REFORM, INFORMATION DISCLOSURE, LOCAL GOVERNMENTS, PROCUREMENT, PROCUREMENT PROCEDURES, PROCUREMENT SYSTEMS, PUBLIC EXPENDITURE, PUBLIC TRUST, SERVICE DELIVERY, SUPPLIERS, TRANSPARENCY, |
Online Access: | http://documents.worldbank.org/curated/en/2004/07/5179798/koreas-move-e-procurement https://hdl.handle.net/10986/11267 |
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Summary: | In 1997 the Korean government began
reforming its notoriously complicated, nontransparent,
corrupt public procurement system, introducing e-procurement
to exploit the country's well-developed information and
communications infrastructure. Through extensive business
process reengineering and information strategy planning, the
Public Procurement Service-the agency formerly responsible
for buying government goods and services-has been
transformed into a one-stop information center.
E-procurement has generated numerous benefits, including:
Enhanced transparency and public trust-by reducing contacts
between officials and suppliers and by sharing information
between government agencies and the public. Increased
managerial efficiency-by achieving economies of scale in
procurement, with an estimated $2.5 billion a year in
savings from the $26 million investment. This note analyzes
how Korea achieved these outcomes, the lessons of its
experience, and the challenges that remain for its
e-procurement system. |
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