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8-2 · Public procurement

Direct Production Confirmation Certificate Issuance

Direct production confirmation is a system under Article 9 of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets, under which an SME that wants to supply an SME competing product to public institutions has it confirmed that it produces that product in its own factory. The application is filed per production factory through the SME public procurement information network (SMPP). The Korea Federation of SMEs, to which the work is delegated, conducts an on-site review of the production facilities, production staff and mandatory processes set for each detailed item in the Direct Production Confirmation Standards for SME Competing Products (a Ministry of SMEs and Startups notice) and confirms the result within 14 days of the application (excluding Saturdays and public holidays); time spent supplementing documents or paying the fee is not counted. Leased production facilities are accepted unless the detailed standard for the item excludes leasing, and production staff are counted as the average over the last 3 months of people enrolled in at least one of the four social insurances. The certificate is valid for 2 years from issuance, and if you reapply within 30 days before expiry, the new certificate runs from the day after the old one expires. If the factory moves, the representative of a sole proprietorship changes, or the business is transferred, acquired or merged (other than a comprehensive transfer), the certificate must be returned and a new application filed within 30 days.

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#Direct Production Confirmation Certificate Issuance#Official check#8-2
🌐 Requirements for a Direct Production Confirmation Certificate
01

Procedure

Procedure

Procedure type
  • Confirmation Difficulty Medium

    The authority reviews documents, and where needed carries out an on-site inspection, to confirm that statutory criteria such as company size, ownership or research staff are met before issuing a confirmation or recognition certificate.

  1. 01

    Match the detailed item against the standards: Confirm the product classification number and detailed item name, then check one by one the required production and inspection equipment, minimum factory area, number of regular employees excluding the representative, mandatory processes and electricity usage set in Annex 2 of the standards. If items from different product groups are applied for at one factory, area, facilities and staff are assessed against the sum of each item's standards.

  2. 02

    Prepare factory and business documents: The certificate of business registration and the factory registration certificate must be issued within 3 months before the inspection date, and the factory registration must list the industry code for the item. A small business with a factory under 500㎡ that has not registered the factory checks that the building register shows a factory or Class 1 or 2 neighborhood living facility use.

  3. 03

    Prepare facility and staff evidence: Owned equipment is proven with purchase or installation records such as contracts and tax invoices, and leased equipment with the lease contract, lease tax invoices and rent payment records, together with a production facility list stating specifications and model names. Staff are proven with a four-insurance enrollment list issued within 7 days of the application showing the 3-month average, and the validity of calibration certificates for inspection equipment is checked.

  4. 04

    File on the SMPP and pay the fee: Fill in the electronic application per factory and upload supporting documents such as the process chart. When notified that a field inspection will be conducted, pay the fee on the network; incomplete documents or unpaid fees can lead to the application being returned. Products holding certifications listed in the notice, such as KS certification, may be exempt from the field inspection.

  5. 05

    Field inspection: The inspector compares the documents with the actual equipment at the factory and may ask regular employees to operate equipment or explain mandatory processes. If you disagree with the result, you can request a re-check from the Korea Federation of SMEs with the grounds and supporting evidence, and the result is notified after another on-site review.

  6. 06

    Manage validity and changes after issuance: Schedule the reapplication within 30 days before the 2-year expiry, obtain a reissued certificate when the trade name or corporate representative changes, and return the certificate and reapply within 30 days when a reapplication event such as a factory move occurs. After signing a supply contract for a competing product, submit raw material purchase records and photos of the mandatory processes on the network before delivery.

02

Filing route

Filing route

Korea Federation of SMEs (electronic application on the SMPP, followed by an on-site factory inspection)

Confirm the current filing office, jurisdiction, and online availability on the official website.

Official check
Actual processing agencyCompetent Korean authority or official service
Statutory and policy authorityMinistry of SMEs and Startups
Online routePublic Procurement Information Network
03

Deadlines & processing notes

Deadlines & processing notes

Check deadlines and next steps against the notice, filing date, and any request for additional documents.Official check
04

Basic documents

Basic documents

Basic documents0 / 8

If confirmation is obtained by false means or subcontracted or another company's finished products are delivered, direct production confirmation for all products is cancelled, a new application is barred for 1 year or 6 months, and public institutions in principle cancel or terminate their contracts with the company.

Scope of services

Scope of services

Hwang Yunsang Administrative Agent Office prepares and translates documents for administrative agencies, submits them on your behalf, and guides you through permit, application, and notification procedures. Services that require the principal’s personal appearance, principal’s application, or electronic signature may be limited in delegation.