On May 13, the Ministry of Finance and Economy held the "2026 First National Contract Dispute Mediation System Briefing Session" in collaboration with the Korea Federation of Small and Medium Businesses.
The National Contract Dispute Mediation System allows procurement companies to request mediation from the National Contract Dispute Mediation Committee, which proposes solutions to resolve disputes. The committee is chaired by the Director of the National Treasury at the Ministry of Finance and Economy and consists of 15 members, including four government representatives and ten private sector members.
Mediation cases surged from just one in 2014 to 60 last year, with projections indicating that this year will exceed 100 cases. Since the system's introduction, the acceptance rate for claims was 50.0%, and the mediation success rate was 35.7% last year.
During the briefing, the Ministry provided explanations about the National Contract Dispute Mediation System and shared mediation case studies. It also discussed major types of disputes arising during the national contract process and potential solutions, focusing on real-life examples. Additionally, one-on-one customized pre-consultations were offered to companies currently experiencing disputes or anticipating them.
The government is working to improve the utilization of the National Contract Dispute Mediation Committee by implementing various system enhancements. Starting June 11, the period for filing objections and mediation requests against contracting agencies will be extended from 20 days to 30 days.
A proposed amendment to the National Contract Act aimed at increasing the effectiveness of the mediation system has also been submitted to the National Assembly. This amendment seeks to establish a financial system that allows the committee to issue binding decisions and enables companies to apply for mediation without prior objections.
Furthermore, it will allow contracting agencies and the committee to review and recommend corrections to contract conditions and unfair clauses in advance. The proposal also includes increasing the number of mediation committee members from the current 15 to 30 and providing assistance from public defenders for small and medium enterprises.
Lee Joo-hyun, Director of Procurement Contract Policy at the Ministry, stated, "We will strengthen the effectiveness and accessibility of the National Contract Dispute Mediation System so that it can become a trusted solution in the field."
Yang Chan-hwa, Executive Director of the Korea Federation of Small and Medium Businesses, expressed support for the proposed amendment, hoping it will pass quickly to help safeguard the rights of small procurement companies.
* This article has been translated by AI.
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