Busan is good

Busan Metropolitan City Hosts Local-Product Priority Purchasing MOU Ceremony to Build a Virtuous Cycle for the Local Economy

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□ Busan Metropolitan City (Mayor Park Heong-joon) announced that it will hold the Local-Product Priority Purchasing MOU Ceremony today (10th) at 11:00 a.m. at the BEXCO Convention Hall and officially declare a public-private partnership for mutual growth to revitalize the local economy.

○ This ceremony was arranged as a follow-up measure to secure the effectiveness of the “2026 Action Plan to Expand Local-Product Purchases,” announced on January 27.
○ A total of around 140 institutions will participate—going beyond a simple declaration to pledge joint action to restore vitality to the local economy—including government agencies such as the Busan Regional Public Procurement Service; public institutions based in Busan; all 16 districts and counties; universities and financial institutions; local economic organizations; and major local media outlets.

□ The City is pursuing this agreement to structurally resolve the problem of shrinking market access for local businesses due to a preference for companies in the Seoul Capital Area and worsening external conditions.
○ The City identified structural limitations in which technologically capable local products have not received fair value, and will establish a virtuous cycle in which the public sector serves as a catalyst and the private sector carries it forward.

□ A core feature of this agreement is that it significantly expands the scope of purchasing. It applies the principle of “prioritizing Busan local products” across economic activity as a whole, including hiring local talent, construction materials, and professional services—going beyond simple consumable purchases.

○ Participating institutions will jointly pursue concrete actions, including establishing internal guidelines to expand local-product purchases; increasing the share of transactions with local companies; transparently sharing purchasing information; and strengthening public-private governance.
○ In addition, they agreed to strengthen the foundation for employing local talent by adopting the principle of prioritizing local firms in private contracts; selecting local firms for 100 percent (%) of projects subject to region-restricted competitive bidding; and raising the construction subcontracting rate from the current 56.7 percent (%) to at least 70 percent (%).
○ Accordingly, the “Busan-first purchasing” principle will be applied across all areas—from routine consumables to talent recruitment, major construction materials, and professional services.

□ With this agreement as a catalyst, the City presented a goal of raising the 2026 local-product purchasing ratio to at least 70 percent (%) and generating an additional 2 trillion won in added value.
○ The City also plans to continuously operate a policy feedback system to ensure the agreement does not remain a one-off effort, including monthly inspections of purchasing performance and the discovery of best practices and the provision of incentives.

□ Meanwhile, a total of 20 promotional and sales booths will be operated at the event site, with participation from outstanding Busan-based companies and associations and organizations, including Renault Korea.

□ Mayor Park Heong-joon emphasized, “Today’s agreement is a practical driving force that strengthens the fundamental stamina of the Busan economy,” adding, “Purchasing local products is not simply consumption; it is the most reliable economic policy that creates jobs for our neighbors and safeguards the future of our children.”

□ He continued, “Based on the unity of 140 institutions and private-sector participation, this reflects our resolve to respond to an exceptional crisis with exceptional measures. I will do my utmost so that citizens can directly feel a new leap forward for the Busan economy.”