Around the world, public procurement is increasingly being designed to serve broader social objectives ― such as supporting disadvantaged groups or promoting innovation ― alongside its traditional economic goals. This trend is also gaining momentum in Korea. In this paper, we refer to the use of procurement to achieve these secondary aims as “strategic public procurement” and explore its potential benefits and costs. Specifically, we conduct an empirical analysis of strategic procurement practices that prioritize certain companies or products, with a focus on Korea’s purchase target ratio system. Our findings suggest that procurement aimed at fostering innovation can be economically effective, whereas evidence supporting procurement targeted at disadvantaged groups is less consistent.

Abstract (ENG)
Preface
Summary (KOR)

Chapter 1. Introduction

Chapter 2. The Meaning and Current Status of Strategic Public Procurement
Section 1. The Meaning of Strategic Public Procurement
Section 2. Current Status of Strategic Public Procurement

Chapter 3. Empirical Analysis of the Costs of Strategic Procurement
Section 1. Review of Previous Empirical Studies
Section 2. Overview of the Empirical Analysis
Section 3. Summary

Chapter 4. Conclusion

References
Appendix