In 1997 the Korean government beganreforming its notoriously complicated, nontransparent,corrupt public procurement system, introducing e-procurementto exploit the country's well-developed information andcommunications infrastructure. Through extensive businessprocess reengineering and information strategy planning, thePublic Procurement Service-the agency formerly responsiblefor buying government goods and services-has beentransformed into a one-stop information center.E-procurement has generated numerous benefits, including:Enhanced transparency and public trust-by reducing contactsbetween officials and suppliers and by sharing informationbetween government agencies and the public. Increasedmanagerial efficiency-by achieving economies of scale inprocurement, with an estimated $2.5 billion a year insavings from the $26 million investment. This note analyzeshow Korea achieved these outcomes, the lessons of itsexperience, and the challenges that remain for itse-procurement system.
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