The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

1. According to the reasoning of the lower judgment regarding the instant case, the following circumstances are revealed.

The Defendant’s disposition (1) proviso to Article 7(1) of the Act on Contracts to Which the State is a Party (hereinafter “State Contract Act”) and Article 26(1)3(f) of the Enforcement Decree thereof (hereinafter “Enforcement Decree of the State Contract Act”) provide that a negotiated contract may be concluded where products designated and publicly notified as excellent goods for procurement under Article 18 of the Enforcement Decree of the Procurement Act are manufactured or purchased from the relevant small or medium enterprise owner.

(2) On August 30, 2013, the Defendant designated the fixed-type connecter (1070D, HS 1081D) produced by the Plaintiff as the exemplary procurement goods. On July 10, 2014, the Defendant concluded a commodity contract with the terms that the Plaintiff and the said person supply them to each local government, which is an end-user institution (hereinafter “instant contract”).

(3) On October 20, 2016, the Defendant rendered a disposition to restrict the Plaintiff’s participation in bidding for three months pursuant to Article 27 of the State Contracts Act (hereinafter “instant disposition”) on the ground that the chair supplied by the Plaintiff to an end-user institution is not an exemplary procurement goods but an ordinary product.

B. (1) The Ministry of Culture, Sports and Tourism, as part of the regional development policy, indicated the support plan to the basic local government without opening up at least 20 film theaters. The scope of support was KRW 33 million per 10,000 per 330,000 per 1 seat of viewing.

(2) Local government officers, such as Gangwon-gu, Jeonbuk-gun, Jeonbuk-gun, Jeonnam-gun, Jeonbuk-gun, Jeonbuk-gun, Jeonbuk-gun, Jeon Nam-gun, and Cho Gyeongcheon-gun, have discussed their opinions as to appropriate products, taking into account the easiness and convenience, etc.

(3) If the above person in charge goes through a competitive bidding against the Plaintiff, the construction period shall be extended.