Act on Contracts to Which a Local Government Is a Party

By KOREAN LAW CENTER

For foreign companies or individuals who want to trade with Korea
In order to help you, we introduce our law to help you
We want to help you minimize trial and error.
In addition We want to help people who study the legal systems of countries around the world.

(PS) We plan to upload the enforcement ordinance of the relevant law as soon as possible. thank you.

• Language: English
• Publisher: KOREAN LAW CENTER
• Release date: Sep 5, 2022
• ISBN: 9788967843731

Book preview

Article 1 (Purpose)

T

he purpose of this Act is to smoothly implement the conclusion of contracts to which local governments are a party, by prescribing basic matters concerning such contracts.

[This Article Wholly Amended on Feb. 6, 2009]

Article 2 (Scope of Application)

T

his Act shall apply to contracts, etc., which are a source of revenues and expenditures, concluded between local governments (referring to the local governments under Article 2 of the Local Autonomy Act; hereinafter the same shall apply) and parties to the contracts.

[This Article Wholly Amended on Feb. 6, 2009]

Article 3 (Applying Matters concerning Education, Science, and Sports)

Heads of local governments or Special Metropolitan City Mayor/Metropolitan City Mayors/Do Governors shall be deemed superintendents of offices of education, Minister of the Interior and Safety shall be deemed Minister of Education, and Ministry of the Interior and Safety shall be deemed Ministry of Education in this Act concerning matters relating to education, science, and sports.  

Article 4 (Relationship to Other Acts)

U

nless prescribed otherwise in other Acts, this Act shall apply to the contracts to which local governments are a party.

[This Article Wholly Amended on Feb. 6, 2009]

Article 5 (Extent of Contracts of Local Governments by International Tender)

(1) The contracts of local governments by international tender shall be announced in accordance with the treaties, conventions, agreements, etc. concerning government procurement to which the Republic of Korea is a party and with other international standards (hereinafter referred to as government procurement agreements, etc.) by the Minister of the Interior and Safety after specifying local governments, amounts and the extent of construction works, goods and services subject to the application thereof among the contracts for construction works, goods and services to be concluded by local governments: Provided, That where any of the following occurs, it shall be excluded from the contracts of local governments by international tender:  

1. Where goods and services necessary for manufacture for resale or sale are procured;

2. Where products of small and medium enterprises are manufactured and purchased according to the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets;

3. Where agricultural products, fishery products or livestock products are purchased in accordance with the Grain Management Act, the Act on Distribution and Price Stabilization of Agricultural and Fishery Products, or the Livestock Industry Act;

4. Other details specified in government procurement agreements, etc., prescribed by Presidential Decree.

(2) Matters necessary for the principles of international tender under the main sentence of paragraph (1), tender announcement, tender methods, selection of successful bidders, etc. shall be prescribed by Presidential Decree.

(3) Where the heads of local governments or those who have been commissioned or entrusted to handle contracting duties as prescribed in Article 7 (1) (hereinafter referred to as contracting officer) acknowledge it necessary in consideration of the purposes, character, etc. of contracts, they may conclude a contract by international tender even when it is not subject to international tender under paragraph (1), as prescribed by Presidential Decree.

[This Article Wholly Amended on Feb. 6, 2009]

Article 6 (Principles of Contracts)

(1) Contracts shall be concluded on equal terms by mutual agreement, and both parties shall implement the terms of contracts in