Ministry of Science and ICT hosts opinion gathering briefing session
Accreditation deliberation committee formed to determine accreditation
Third-party announcements apply exceptions to large corporat

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The outline of the private investment software business promotion guide was revealed.

The Ministry of Science and ICT revealed the Promotion Guide 1.0 for the promotion of private investment SW businesses and hosted a briefing session to gather opinions including those for Promotion Guide 2.0.

Promotion guide 1.0 is composed of an outline of private investment SW businesses, key content, and key promotion processes by type.

Private investment SW businesses are public SW development businesses that have over 50% of the investments coming from the private sector. Once the system is established, private capital and technology are used as the public and private sector work together to promote businesses. This allows the public sector to overcome a lack of business funds, and companies can overcome the limitations from large corporation participation restriction policies.

The guide explained that private companies can directly participate in the planning, establishment, and operation of public SW businesses and invest their private capital, and they also can generate revenue from the established public SW usage fees or recover their investment through the rent paid by the government.

The private investment SW business is divided into development and purchase, and the development business is then divided between rental and revenue. The rental part is where investments are recovered through fees like the SW rental fee supplied by the public, and the revenue part is where investments are recovered though usage fees paid by SW users.

The purchasing business is a business method where SW already developed by the private sector are purchased or used as a service for a fee. Software as a service (SaaS) is one such example, and businesses provided through a digital service contract system are considered a private investment SW business.

The private investment SW business promotion system is composed of the competent authority (ordering agency), private business operators, the dedicated institution (NIA), and the Ministry of Science and ICT.

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<The qualification survey is conducted through the following procedures: preliminary review of the business plan and an analysis of business feasibility, qualification analysis, proposal of private investment execution alternatives, and preferential score calculation.>

Starting with the preliminary review of the business plan (1 month), it then goes in order to an investigation of eligibility which includes an analysis of business feasibility and qualification (6 months), deliberation, third-party proposal announcements, business license selection evaluation, and finally the signing of the agreement.

The deliberation is the procedure where businesses that have passed the eligibility investigation are recognized and announced as private investment SW businesses by the Ministry of Science and ICT. The competent authority then hands the business plan, the eligibility investigation report, and the registration request to the Ministry of Science and ICT.

The third-party proposal announcement is the procedure to conduct the formal bidding for businesses that have been recognized and announced as a private investment SW business by third parties including the first proposer. The guide stipulates that the exception to the restriction of the participation of large corporations, parties that evaluate the impact of SW, and parties that directly purchase commercial SW (separate order), are applied when third-party announcements are made.

The business license selection evaluation is set to have 80 points to come from the technology evaluation and 20 points to come from the price evaluation, but must leave room for adjustments from the competent authority. The first proposer of the private investment SW business can be given up to 5 extra points, but in the case of participating in the bidding after changing the business plan, the decision must be made within 50% of the original calculated score.

A spokesman for the Ministry of Science and ICT said that, “The rough draft of the guide revealed at the end of the previous year was centered on the procedures, but guide 1.0 is focused on the screening on each procedure and the things that agencies and companies must prepare,” and went on to say “The final version will be distributed after supplementing the contents of the briefing session.”

The private investment SW business is expected to be the ‘Smart Integrated Children’s Food Management System’ promoted by the Ministry of Food and Drug Safety. The Ministry of Food and Drug Safety plans to complete the preliminary preparations and issue the third-party announcement early next year.

The Ministry of Science and ICT is also planning to develop the Private Investment SW Business Promotion Guide 2.0 which will take the laws and systems of other ministries into consideration.

Reporter Ho-chun Ahn (hcan@etnews.com)