Gov't to buy more AI products, using public procurement as growth platform

Minister of Economy and Finance Koo Yun-cheol presides over a weekly meeting of economy-related ministers at Government Complex Seoul, Wednesday. Yonhap

The government will purchase more artificial intelligence (AI) products, from software to hardware, through public procurement to support promising private companies and help Korea become a top-three global AI power, the Ministry of Economy and Finance said Wednesday.

The ministry also said that AI will be newly applied as an operational tool to streamline and improve the efficiency of public procurement processes, including competitive bidding and single or multiple contracts.

These measures, announced at a weekly meeting of economy-related ministers, aim to use the public procurement market as a platform for startups and small and medium-sized enterprises to showcase and develop their AI capabilities, as they often face limited access.

With participation from 620,000 private sector suppliers, the market is valued at 225 trillion won ($155.1 billion) and accounts for 9 percent of Korea’s annual gross domestic product.

Government Complex Daejeon, where the Public Procurement Service headquarters is located, is seen in this undated photo. Yonhap

“The government will leverage its purchasing power to become a leading buyer of AI-based goods and services,” Minister of Economy and Finance Koo Yun-cheol said as he presided over the ministerial meeting at Government Complex Seoul.

“We believe that cooperation between the private and public sectors will serve as a catalyst for the growth of the AI industry,” he added.

Koo underscored the importance of such cooperation, especially as the global race for AI leadership intensifies between the United States and China, while other countries, including Korea, which aims to join the top ranks by 2030, also push forward.

The finance ministry explained that AI products will receive preferential treatment in the government’s purchase of goods and services categorized as “innovation-driven.”

The products range from medical software to care robots, wearable devices, illegal camera detection systems and recycling waste-sorting equipment, reflecting demand from ministries, affiliated subordinate organizations and state-run companies.

AI products made up 18 percent of innovation-driven government purchases in 2025. That share is expected to rise to 25 percent by 2027.

The government will make it easier to register AI products on its online procurement platform, allowing faster participation in bidding.

It will also raise the bidding threshold, which is the price limit that determines whether the government must run a full competitive process.

This means higher-value AI products can be bought more quickly, without extra rounds of competition.

AI-certified products and companies will also get extra credibility points during evaluations, helping them enter the public procurement market more easily.

For operations, the government plans to introduce an “AI agents” program to simplify complex procurement tasks.

The program will help review proposals, identify feasible projects and compare products to support fair decision-making.