Korea Government Procurement Bidding Price Strategy — Narajangteo 2026 Guide

1. How Korean Government Bids Are Evaluated

Korean public procurement bids are evaluated under two main systems: lowest-price (below a certain contract value) and comprehensive evaluation (above KRW 100M for goods, higher for construction).

2. Lowest-Price Bidding (최저가 낙찰)

For low-value contracts, the lowest valid bidder wins. The preliminary price (예정가격) is set by the procuring agency. Bids must be within a valid range (typically 87–100% of the preliminary price). Bids below the floor are disqualified as "abnormally low."

3. Comprehensive Evaluation (종합심사)

For larger contracts, price score is combined with technical score. Price typically accounts for 20–40% of the total score. A lower price improves the price score but must be balanced against technical quality.

4. Optimal Price Calculation

• Research past contract awards in the same category to gauge typical winning prices
• Calculate your cost floor including overhead and profit margin
• For lowest-price bids: aim for the 87–92% range of estimated preliminary price
• Use Narajangteo's bid analysis tool for historical data

5. Common Bidding Mistakes

• Bidding below the disqualification floor
• Missing the bid submission deadline (late bids are rejected with no exceptions)
• Incorrect digital certificate or expired certificate
• Failing to attach required technical documents in comprehensive evaluation

6. Certification Bonuses

Certified companies receive scoring bonuses: SME certification, Women-Owned Business, Venture/Innobiz, and others add points to comprehensive evaluations and may grant direct purchase preferences.