"Public Procurement Even with Zero Delivery Tracks"… Entry Requirements for AI Products in the Procurement Market Drastically Eased Starting August 1
Date
Jul 27, 2026
Classification
- Startups
#
- Policy/Regulation
Author
Starting August 1, the requirement for delivery performance of 30 million won or more, which was previously required for registering AI products on the KONEPS shopping mall, will be waived. The requirement for three delivery records for software unit price contracts will also be eliminated, and a 1.5-point technical bonus will be awarded in the qualification review for lump-sum contracts. In September, an innovation product review track dedicated to AI convergence products will be introduced, followed by dedicated review criteria for excellent AI products in October.
Starting August 1, entry requirements for the public procurement market will be significantly eased for AI companies that have been unable to cross the threshold of the public market due to a lack of delivery track record.
Exemption from performance requirements for KONEPS registration… Number of suppliers reduced from 3 to 1–2
Starting August 1, the requirement for delivery performance exceeding 30 million won, which was previously necessary for registering AI products on the Nara Jangteo Comprehensive Shopping Mall, will be waived. Additionally, the supplier requirement will be relaxed from the existing three or more companies to one or two. The procedures for eligibility assessment and price data submission will also be simplified. While registration on the Comprehensive Shopping Mall has long served as a channel for public institutions to purchase products without separate bidding, the registration process itself was designed to presuppose a certain level of sales performance, effectively making it a closed door for early-stage startups.
The basis for the institutional change is the amendment to the Enforcement Decree of the Framework Act on Artificial Intelligence, which passed the Cabinet meeting on the 14th. The amended Framework Act on Artificial Intelligence and its Enforcement Decree came into effect on the 21st, and the amendment mandates that public institutions prioritize AI-applied products when purchasing goods or services necessary for their operations. To support this, the government has established a verification system for AI products and services. Under this system, if a company applies for verification to the Korea Artificial Intelligence and Software Industry Association (KOSA), the Korea Information and Communications Technology Association (TTA) reviews whether AI technology is being utilized.
1.5 technical score bonus and fee exemption… New clause even added to exempt personnel from liability
Substantial procurement preferential treatment will be applied to products that have received a certificate starting in August. Requirements and procedures for participation in the Multiple Award Schedule (MAS) will be relaxed, a credibility bonus of 1.5 points will be granted in the technical score during the qualification review for lump-sum contracts, and delivery performance requirements will be waived for software unit price contracts. The certificate can also be used as proof of technology when applying for designation as an innovative AI software product. Previously, three delivery records were required for software unit price contracts, and verification fees will also be waived in 2026, the initial year of the system's implementation.
A notable point is the provision that eases the burden on the purchasing party. A new clause has been introduced granting immunity to the person in charge at the adopting institution unless there is intent or gross negligence, thereby establishing a safeguard to lower psychological barriers in the decision-making process for AI adoption by public institutions. The structure in which the person in charge bears responsibility if a problem arises after purchasing a product from an unverified startup has long been identified as a practical cause hindering the securing of public sector references.
Minister of Science and ICT Bae Kyung-hoon stated that he expects the implementation of the revised AI Framework Act to accelerate the introduction and utilization of AI in the public sector and increase public access to AI.
Dedicated track for innovative products in September, evaluation criteria for excellent products in October… 3-stage reorganization by the end of the year
The system reform does not end in August. In September, a dedicated evaluation track for innovative products targeting AI convergence products is scheduled to be introduced. Evaluations will focus on the reliability of AI models, data security, and personal information protection, and innovative AI prototypes without a track record of commercial transactions can also apply through the Innovation Marketplace. Subsequently, starting in October, AI-specific evaluation criteria will also be applied to the designation of excellent products.
Procurement authorities state that they have already accumulated relevant achievements over the past year. According to the Public Procurement Service, as a result of implementing system improvements such as exemptions from delivery performance requirements, preferential bidding, expert evaluation, and contract simplification, the designation of AI products among excellent and innovative products increased by 90%, while the total number of designated innovative products rose by 24% and public procurement amounts increased by 11%. Baek Seung-bo, Commissioner of the Public Procurement Service, explained that they have driven technology-leading growth by strategically leveraging 225 trillion won in annual public purchasing power. However, the evaluation criteria and processing time of the verification system, as well as the actual acceptance rate by contracting agencies, remain areas that can only be verified after implementation.
Starting August 1, the requirements for AI companies to enter public procurement will be lowered simultaneously across three levels: delivery track record, number of suppliers, and contract procedures. With the addition of immunity clauses for purchasing managers, this effectively opens up an initial revenue channel institutionally for early-stage companies that were previously trapped in a cycle of "unable to build a track record due to a lack of track record." However, as the acquisition of a confirmation certificate is a prerequisite for this preferential treatment, the actual scale of benefits is expected to depend on the threshold set by the KOSA and TTA evaluations.
#AIFrameworkAct #PublicProcurement #NaraProcurement #ExemptionFromDeliveryPerformance #AIStartup
[Advertisement]
Collaboration Proposals / Business Inquiries: hello@startlounge.kr
IR/Pitch deck manufacturing inquiries: hello@pitchmound.kr
IR/Pitch deck manufacturing inquiries: hello@pitchmound.kr
Everything about startups . Start Lounge - Launch Pad 「Lunch Pad」
ⓒ 2026. Start lounge. All rights reserved.
