This Regulation is prescribed pursuant to paragraph 4 of Article 17 of the Government Procurement Act.

In conducting a procurement related to national security, where it is not subject to any treaties or agreements to which this nation is a party, an entity may prescribe qualification restriction for domestic or foreign suppliers in the tender documentation. Where the procurement is subject to any treaties or agreements to which this nation is a party, and may be exempted form application in accordance therewith, an entity may prescribe such restriction in the tender documentation. The same shall also apply to subcontractors.
Where an entity prescribes qualification restriction in accordance with the preceding paragraph, the requesting, using or procuring unit of the entity shall provide the reason and necessity for such restriction, and report it to the head of the entity or the personnel authorized by the head for approval.

Where an entity prescribes qualification restriction in accordance with the preceding article, the entity may, based upon the characteristics of the procurement and actual needs, select the restriction from the following:
1.the nationality of a supplier or the laws on which a supplier is based for establishment and registration;
2.the nationalities of authorized representative, directors, supervisors, managers, or shareholders holding more than ten percent of the total number of shares or the total amount of capital stock of a supplier;
3.the financial sources and the ratio restriction thereof;
4.any other requirements as prescribed in laws and regulations or as determined by the responsible entity.
Where the entity prescribes restriction in accordance with the preceding paragraph, the entity shall also prescribe the certification document to be submitted in tender by the tenderer.

An entity shall prescribe in the tender documentation that in case of any change of the content of certification document referred to in paragraph 2 of the proceeding article after submission of the tender, the tenderer shall take the initiative to notify the entity and provide the amended certification document to the entity for evaluation. In case that such change is inconsistent with the requirement of the tender documentation, the entity shall not award the contract to the tenderer.
An entity may prescribe in a contract that when any of the circumstance of qualification restriction specified in the tender documentation occurs to the winning tenderer after award, the contract may be terminated or rescinded, and the entity may claim for damages against the tenderer.

In the event of any questions to the prescription of qualification restriction or evaluation of certification document provided by the suppliers under this Regulation, an entity may referred them to the relevant competent authorities for their opinions.

This Regulation shall take effect on the date of promulgation.