South Korea operates a system to ensure that public procurement favors SMEs that actually produce the goods they supply. The Direct Production Confirmation certification is a key mechanism in that framework. Below is a concise overview of what it is, who qualifies, and why it matters.
What is Direct Production Confirmation?
Direct Production Confirmation is a certification used in public-sector purchasing to verify that an SME directly manufactures the goods it offers. It is commonly required for items subject to SME-only competition or for certain direct contracts above defined thresholds.
Who can receive this certification?
SMEs that directly manufacture the relevant product and are properly registered on the applicable public e-procurement platforms may apply. Applicants must demonstrate their own production capability (processes, facilities, personnel) for the specific item.
What does the certification indicate about the business?
The certification confirms that the Korean company has been independently evaluated by an authorized SME agency for direct production of the specified goods—typically through document review and on-site inspection of production processes, equipment, and staffing. It signals that the firm is eligible for public tenders that require proof of in-house manufacturing, rather than relying primarily on OEM, supply, or subcontracting arrangements.
Why it matters
Holding this certification can be a precondition for participation in SME-preferential procurement and can improve competitiveness in public bids where proof of direct production is mandatory.
Coverage in KOBDi: The KOBDi database includes Korean companies holding Direct Production Confirmation (직접생산확인) certification. This information appears on each Business Profile page, and certified companies can be found via the KOBDi Korea Industry Search.