The ministry will verify whether projects are reasonably sized considering the amount of payment and the given period for performance. (image: Korea Bizwire)
SEOUL, Mar. 9 (Korea Bizwire) — The Ministry of Science, ICT and Future Planning (MSIP) is going to run a demonstration project in a bid to promote fair payment customs for contract-awarding companies and software developers, according to a ministry statement from March 8. The ministry plans to apply rigorous rules to the process of awarding contracts to 51 selected software businesses by MSIP-affiliated organizations. The 51 businesses have a combined value of 122.2 billion won (US$ 110 million).
The ministry will verify whether projects are reasonably sized considering the amount of payment and the given period for performance. The ministry will also actively apply the rule of limitations on subcontracting, in which developers are prevented from outsourcing more than 50 percent of a project.
The MSIP will also investigate whether companies drastically change given project specifications without proper compensation. Software institutions and related governmental organizations will operate a task force to conduct the monitoring in collaboration with the MSIP.
By Lina Jang (linajang@koreabizwire.com)
