Next K-Wave expected from country's leading export consultation event
Since the 1960s, exports have driven Korea’s economic growth. Last year, Korea became the world’s sixth-largest exporter.
However, recent armed conflicts in Ukraine and the Middle East, currency fluctuations, supply chain crises and global uncertainties have led the nation‘s export growth to slow down. To overcome this challenge, concerted national-level efforts have been made and, consequently, export figures have started to show a positive reversal since October.
In line with this, the Public Procurement Service (PPS) is also exploring international procurement markets for greater export opportunities.
The total size of these global government procurement markets looks colossal, amounting to $12.6 trillion, which is twelve times the annual size of the domestic procurement market at 196 trillion won. To penetrate these lucrative markets, PPS has been operating the G-PASS (Government Performance ASSured) system since 2013. Leveraging its experience gained in leading the domestic government procurement market, the central procurer has actively supported the entry of Korean small and medium-sized enterprises (SMEs) into overseas procurement markets.
In this borderless era, competing solely within is outdated. For small businesses to grow into global giants, their hard-earned technologies need to be showcased and appreciated abroad, which would subsequently contribute to the nation’s exports.
However, despite the charms of overseas procurement markets, sharp and formidable challenges remain. Diverse factors including different regulations in each country and protection of national interests for political and security purposes create high entry barriers to global procurement markets. Breaking through these barriers requires more than the capabilities in manpower, finances and information that SMEs possess.
To provide a platform for small businesses that have not yet developed sufficient export capabilities to reach out to global markets, PPS has taken supportive measures such as export consultations, marketing and exhibition programs.
As part of PPS’ supportive initiatives, Global Public Procurement Marketplace 2023 (GPPM2023) will be held from Nov. 29th to 30th. GPPM2023 is Korea’s largest export consultation event to support SMEs in entering international public procurement markets. The event will bring together buyers from around 100 businesses and export-promising companies and their outstanding technologies used for government-designated Innovative Products, Excellent Government Procurement Products and Venture Mall-registered products.
Recently, the trend of the Korean Wave has broadened its boundaries from entertainment to food and cosmetics. Hoping to continue this trend, we anticipate that the nation’s quality procurement products can act as a gateway, stirring the winds of the "K-Public Procurement Wave" through GPPM2023.
There is a historical account from France's Napoleonic era where British merchants sold cloth for military uniforms to the French even during the war between the two countries. This indicates how enthusiastic businesses are in seizing any opportunity to advance into lucrative markets. Now, GPPM 2023 is poised to be the very opportunity.
PPS will support domestic SMEs in making inroads into overseas procurement markets by serving as a driving force to help lower the entry market barriers so that they can grow into global giants leading the K-Public Procurement Wave.
The writer is vice administrator of the Public Procurement Service (PPS).