Korea Online e-Procurement System (KONEPS) Functions and Integration


Kang-il Seo

Public Procurement Service (PPS) The Republic of Korea

Korea ON-line E-Procurement System(KONEPS)

Forewords: Korea’s e-Government Projects
Korea Online e-Procurement System (KONEPS) was implemented as part of the Korean Government’s national e-Government initiatives

Innovation in Services
1 2 3 Government-wide e-Procurement System Single Window for Civil Services 7 Integrated Social Security Information System Internet-based National Taxation System 8 9 5 6

Administrative Productivity
National Finance system
Integrated Administration System for Local Governments Nation-wide Educational Administration System Standardized HR Management System Consolidation of e-Document Exchange and e-Reporting



e-Authentication and eSignature System


Government-wide ITgovernance Environment

Korea ON-line E-Procurement System(KONEPS)

Government-wide e-Procurement System


Developed and operated by PPS
Commonly used by all public agencies for procuring goods and construction works

One-Stop Service

International standards to ensure inter-operability

Single Window

Characteristics of KONEPS

Single Window for Public Procurement
Publication of all public tender notices and related information at a single website

Bidders can participate in all public biddings after one-time registration

Public Organizations


Characteristics of KONEPS
Integration of Entire Procurement Process
Entire procurement processes from supplier registration & bidding through to payment are conducted via the internet

One-click purchase at the Online Shopping Mall

One-stop Service
160 types of documents handled online through the data exchange linkage with 123 other public sector & private sector information systems

Characteristics of KONEPS
KONEPS processes the entire procurement procedures through the 4 major sub-systems: e-bidding, e-contracting, e-payment and the online shopping mall


Tender notice Price Assessment Evaluation / Analysis Contract Registration Composition and sealing of Contracts Contract Review E-Payment Expenditure Mgmt. Fee Management Product Registration E-Catalogue Product Search Online Order



Online Shopping Mall

Impacts of KONEPS

Transactions through KONEPS

42,000 Public Entities

195,000 Registered Suppliers

Total Volume of Transactions Conducted via KONEPS
$85bn $75bn $63bn $56bn





Improved Transparency through e-Procurement
Public Access to Procurement Information
Online tender notices and real-time disclosure of bidding results Pre-notice of requirement specifications and feedback for fairer competition

Reduction of Contracting Officer’s Arbitrary Discretion
Full/partial automation of bid evaluation, using data from public & private sector systems Stronger supplier data validation (credit rating, past performance, quality

certifications, guarantees, tax payment record, etc.)
Prevents the manipulation of contract terms after awarding

Stronger Enforcement of Regulations
System ensures that contracts are not awarded to debarred suppliers, liquidated damages for late delivery are collected, etc. Audit trail, suppliers’ bidding pattern analysis

Increased Efficiency and Cost Savings

Improved Work Efficiency
Government-wide data sharing and retrieval No need for manual processing of paper documents Increased user-convenience

Annual Transaction Cost Savings of USD 8.1 Billion
USD 6.6 billion on the suppliers’ side, USD 1.5 billionin the public sector Reduction of visits and contractrelated papers, time-saving, etc Savings of labor and time for searching for tender information

Transaction Cost Savings
Transaction Cost Savings
Unit: million USD

• For each process : Number of cases x Required labor time on average x Average wage per hour x (visit cost where applicable) • Savings in the services & construction contracts in the private sector was the largest (6.1 billion)

70,000 7,000

6,106 61,059

6,000 60,000 5,000 50,000 4,000 40,000

3,000 30,000
2,000 20,000
10,000 1,000 -

582 5,819 859 8,586 505 5,053 Services/Works 시설/용역
물품 Goods

- reduction of visits, no. of bidders 44 times larger than goods

Public Sector Goods 물품


Private Sector


Services/Works 시설/용역

Collaboration with Other Countries

Mongolia Uzbekistan
e-Procurement F/S in 2009 Mongolian e-GP System Implementation by Nov. 2011

e-Procurement F/S in 2009 Implementation scheduled in 2012

e-Procurement F/S in 2008

Costa Rica
MER-LINK Commenced Full Service in Dec. 2010

e-GP Pilot System Operated since Jul. 2010 Cross-governmental expansion in planning

Data Integration with Other Information Systems

Data Exchange for Integrated Service (1)
KONEPS interacts with over 123 external systems for validating supplier data and fully digitalized processing of public tenders

Other Bidding Systems
• Bid Notice • Supplier Info • Irregularity Info

Bid Notice Info
• Nat.l Housing Bond • Network Loan • PG Service

Public Org.
• e-Document Linkage • e-Approval • e-Catalog • G4C, G4B, GCC Certificate Issuance

Credit Authority
• Credit Rating • Credit Info

Surety Company
• Bid Bond • Contract Guarantee, etc.

• The Contract • Delivery Request, etc. • e-Document Linkage

• Business Achievements • Construction Performance

Certification Authority
Bid Evaluation Data Certificate Info
• Certificate Issuance • Validity Verification

Forewords: Korea’s e-Government Projects e-Tendering through KONEPS
Certificate Authorities Authentication Certificate Other Bidding Systems Integrated Notice PG System Certificate Bid Bond Related Associations Supplier Data Certificate Authorities Authentication Certificate D-Brain System Contract Information G4C System Certificate for Tex Payment

Supplier Registration

Tender Notice


Evaluation Awarding


Delivery Acceptance


G4C System Supplier Registration

Public Org. (36,000) Integrated Notice

Surety Company Bid Bond Certificate

Encryption Key Issuance System Encryption/ Time Stamp

Surety Company Performance Bond, etc

D-Brain System


Electronic Funds Transfer

All procurement processes are digitalized

Online Transaction

KONEPS electronically obtains information on the bidders (business registration, credit rating, past performances, etc) from other public & private information systems

Data Exchange for Integrated Service (1)
KONEPS interacts with over 123 external systems for validating supplier data and fully digitalized processing of public tenders
External Systems G4C System (MOPAS) Certification Authorities 11 Industry Associations Credit rating agencies Surety Companies d-Brain (MOSF) KFTC* 7 other public e-GP systems CITIS, Construction DB (MLTM) Technical Certification Agencies Data Exchanged Supplier’s business registration, tax payment records Digital certificate information Bidders’ financial status, credit rating, performance capacity for construction works, data for PQ evaluation, etc. Suppliers’ credit rating e-Certificates for bid bonds, performance bonds for bidding and contracting Contract information, payment request e-Payment via electronic fund transfer Integrated tender notice Contractor Information Management Certification information on suppliers’ products

* KFTC : Korea Financial Telecommunications & Clearing Institute * CITIS : Contractor Integrated Technical Information Service

Data Exchange for Integrated Service (2)
Major features of integrated system are as follows

• Provide the linkage client API by the most effective method for the linkage between KONEPS and institutions & businesses which have different operation environments and platforms

Major Features

• Possible to utilize the KONEPS process and data in linkage to the web service-based method - Prevent the overlapping investment in a similar system by sharing the KONEPS process and data • Provide the communication and security architecture which complies with the international standard - The international standard on the ebXML-related standard, Web Service-related standard, XML & security are applied



Development of KONEPS

Electronic Data Interchange System (1997)

Preparation Period

Online Shopping Mall System (1998) e-Tendering System (2000) e-Guarantee and e-Payment System (2001)

Gov’t-wide Expansion

As one of 11 e-government projects, KONEPS was developed for the use of the whole public organizations (2002),

Disaster Recover System, Data Warehouse, CRM

Further Advancements

“Intelligent Product catalogue” System (2006)
Comprehensive On-line Shopping Mall (2006) Mobile phone support for bidding (2008) Fingerprint recognition e-bidding (2010)

3.4.2 수요기관 비용절감 효과 산출식 [시설/용역]
Process 단계 Function (지표값 감소분) 계약방법 결정 시설/용역 시설/용역 계약방법 결정시간(As-was – As-is) 입찰공고 소요시간(As-was – As-is) 입찰공고 부대비용(As-was – As-is) 입찰참가신청업체 서류처리시간 (As-was – As-is) PQ심사자료 접수/심사 시간 (As-was – As-is) 적격심사자료 접수/심사 시간 (As-was – As-is) x x x x x x (연간 총 건수) 입찰계약건수 입찰공고건수 입찰공고건수 입찰공고건수 PQ심사건수 건별 입찰참가 투입인력 시간당 X x 업체수 수 평균임금 x 투입인력 시간당 x 수 평균임금 투입인력 시간당 x 수 평균임금 투입인력 시간당 x 수 평균임금 x x x (평균인건비) 투입인력 시간당 x 수 평균임금 투입인력 시간당 x 수 평균임금

시설/용역 입찰참가신청확인 시설/용역

PQ심사자료 접수 및 심사 시설/용역 적격심사자료 접수 및 심 시설/용역 사 계약서 작성 및 송부




시설/용역 계약서작성/송부시간(As-was – As-is)

시설/용역 검사검수 확인 및 대금지급

계약과의 지불요청접수 및 지불요건 검토시간(As-was – As-is)


지불건수 (=입찰계약건수x 3)


투입인력 시간당 x 수 평균임금

지출관의 지출요건 검토 및 국고수표발행 시설/용역 /입금시간(As-was – As-is) (국가기관만 해당) x

지불건수 (=입찰계약건수x 3)


투입인력 시간당 x 수 평균임금

3.4.4 (2) 조달업체 비용절감 효과 산출식 (시설/용역)

Process Function 단계

방문횟수 감소분


연간 총 건수


건당 대상 업체수 x

(1회 방문 공동도급 x 율 비용



PQ심사 시설/용 신청 및 역 서류제출

계약기관 및 관련기관 방문횟수 감소분 (As-was – As-is) 계약기관 및 관련기관 방문횟수 감소분 (As-was – As-is)




건별 제출업체수


(1회 방문 투입 시간당 평균소요 + x x 비용 인력 수 평균임금 시간)

적격심사 시설/용 서류제출 역


적격심사 x 건수

건별 적격심사 대상업체 수


(1회 방문 투입 시간당 평균소요 + x x 비용 인력 수 평균임금 시간)

입찰참가 신청 계약기관 및 관련기관 방문횟수 감소분 (As-was – As-is) X 입찰건수 x

시설 입찰건 별 참여업체 수 x 용역 입찰건 별 참여업체 수 시설 입찰건별 참여업체 수 X 입찰건수 x x


(1회 방문 투입 시간당 평균소요 + x x 비용 인력 수 평균임금 시간)

시설 입찰참가 용역 계약보증 제출 및 시설/용역 계약 체결 계약기관 및 관련기관 방문횟수 감소분 (As-was – As-is) 계약기관 및 관련기관 방문횟수 감소분 (As-was – As-is) 계약기관 및 관련기관 방문횟수 감소분 (As-was – As-is)

용역 입찰건 별 참여업체 수
X 계약건수 x 계약업체수 x

(1회 방문 투입 시간당 평균소요 + x x 비용 인력 수 평균임금 시간)

공동도급 (1회 방문 투입 시간당 평균소요 x + x x 율 비용 인력 수 평균임금 시간)

대금청구 시설/용역

X 계약건수 x



공동도급 (1회 방문 투입 시간당 평균소요 x + x x 율 비용 인력 수 평균임금 시간)