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Constitutional & Administrative Group

[Constitutional & Administrative] Public Procurement Service Reviews 112 Regulations: How Will the Competitive Bidding Environment Change?

Related AreasConstitutional Review & Constitutional Complaint · Unfair Competition Prevention Act · Unfair Trade Practices · Yellow Envelope Act

2025.Nov

Nov.2025

PUBLIC POLICY & REGULATION

[Constitution & Administration] Public Procurement Service Reviews 112 Regulations: How Will the Competitive Bidding Environment Change?

Public Procurement Service Reviews 112 Regulations: How Will the Competitive Bidding Environment Change?

Public procurement is rapidly shifting from a regulation-centered approach to one centered on autonomy and trust. Through a comprehensive review of 112 regulations, the Public Procurement Service is pursuing an innovation plan to overhaul outdated contracting practices and strengthen corporate autonomy and the foundation for fair competition. With the removal of restrictions on discount events and the conversion of technical-service bidding to a "bid-first, evaluate-later" method, barriers to entry for small and medium-sized enterprises are expected to be lowered. A strategic response in step with the changing procurement environment appears necessary.

'Monitoring subcontracting agreements with AI'—how to reduce illegal subcontracting risk

The Fair Trade Commission has announced that it will introduce a platform that uses AI to inspect subcontracting agreements. It is a system that automatically monitors contract drafting, payments, and performance to detect signs of violations. Companies will find it harder to be exempted from liability for illegal subcontracting on the grounds of practice or mistake, and violations may lead to immediate sanctions. Before the AI-detection platform takes effect, it is time to build internal self-inspection and data-management systems.

Constitutional Court dismisses the Yellow Envelope Act challenge—the 'golden window' to review Yellow Envelope Act risks

The Constitutional Court has dismissed the constitutional petition against the "Yellow Envelope Act" on the grounds that the petitioners lacked standing. As the question of unconstitutionality was not ruled upon, the law's effect remains intact. The business community, however, is calling for supplementary legislation and the establishment of clear guidelines before the law takes effect. Now, on March 10, 2026—about four months before the law takes effect—it is the "golden time" to review the substantive reach of the Yellow Envelope Act and examine corporate governance and labor relations.

CASE STUDY

Ruling Analysis

What Was the Constitutional Court's Ruling on the Constitutional Complaint Over the Private Rental Housing Act Reform?

Constitutional Court Rules Catch-All Permit Provisions for Strategic Items Do Not Violate the Constitution

Supreme Court signals solar cell and OLED manufacturing technologies are likely to be recognized as 'advanced technology'

PROPOSED BILL

Latest Amendments and Proposed Bills

Amendment to the Administrative Procedures Act Allowing the Exercise of the 'Right to Request Explanation' for Information Provided Through AI Used by Administrative Agencies

Amendment to the Fair Trade Act Proposed, Capping Delivery Platform Fees to Prevent 'Abuse of Power'

Amendment to the Criminal Procedure Act proposed to bar prosecutors from appealing when there are acquittals at first and second instance

POLICY BRIEF

Central Ministry Trends

Ministry of Trade, Industry and Energy announces a plan to promote technology sharing among energy public corporations and public research institutions

Fair Trade Commission Sanctions Four Companies, Including Coupang and Contents Wavve, for “Dark Patterns”

Ministry of SMEs and Startups and Others Announce Measures to Eradicate Technology Theft from Small and Medium Enterprises

The National Tax Service's Tax Support Measures to Aid 4,800 AI Small and Medium Enterprises

INSIGHTS

Daeryun in the Press

Money Today

A sigh of relief at the abolition of breach of trust, but it is time for companies to prepare for 'civil risk'

With the government's recent announcement of its "First Plan for Rationalizing Economic Penalties," the abolition of the crime of breach of trust under the Criminal Act is becoming official. Following the abolition of breach of trust, companies will need to prepare for heightened civil risk, including measures such as directors' and officers' liability insurance. Daeryun's attorney Lee Il-kwon examines the outlook after the abolition of breach of trust.

Money Today

Stable Asset Management: A Decisive Factor Shaping a Company's Future

Across industries including construction, uncollected receivables are surging, increasing the risk of deteriorating corporate liquidity and credit-rating downgrades. Debt collection is a survival strategy, and lawful procedures and proactive risk management are essential. Lee Sang-kwon, the first attorney to specialize in debt collection, offered comments on companies' stable asset management.

Korea Economic Daily

The end of 'implied agreement': the margin franchise fee ruling that shook the franchise industry

In the "Pizza Hut Korea case," the Seoul High Court ruled that the franchisor's margin franchise fees constituted unjust enrichment, holding that legitimacy cannot be established merely by implicit agreement or by an entry in the disclosure document. As a ruling emphasizing the need for transparency in the profit structure and trust-based management across the franchise sector, franchisors appear to urgently need institutional responses such as explicit contractual stipulation, consistency in disclosure documents, and overhauling their accounting structures.

Money Today

U.S. Export Goods Pricing: Verify Deductible Costs and Procedures for a Strategic Response

Although the U.S. Court of Appeals for the Federal Circuit ruled that reciprocal tariffs based on the IEEPA were unlawful, President Trump appears likely to continue the tariffs by drawing on other trade laws. Domestic exporters should accurately review HS codes and rules of origin, and use the FOB-based assessment method to deduct inland freight and service costs. Tariff specialist Kim Dae-ryun emphasized the lawful reduction of companies' tariff burdens.

CONTACT

Kwak Nae-won

Representative Managing Attorney

T. 070-5117-2950

Shin Jong-soo

Chief Managing Attorney

T. 070-7510-1046

Kim Kwang-deok

Chief Managing Attorney

T. 070-7510-2018

Son Gye-jun

Managing Attorney

T. 070-5117-3709

Jeon Hyo-chul

Senior Attorney

T. 070-5221-2387

Lee Jae-yoon

Associate Attorney

T. 070-7510-1822

Daeryun Law LLC newsletters are provided to deliver general legal information to clients quickly and accurately. The content herein does not represent the official views of Daeryun Law LLC, nor does it constitute legally binding legal advice on specific matters. For specific inquiries, please consult with the attorneys and specialists at Daeryun Law LLC.

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