Public Procurement Service Reports Last Year's Public Procurement at 225 Trillion Won, "All-Time High"

Last year, the annual scale of public procurement exceeded 225 trillion won, marking an all-time high. The scale of public procurement has been increasing every year, and analysts note that its influence on domestic demand and the livelihood economy has grown accordingly.

On June 27, the Public Procurement Service announced that it had released the analysis results of the "2024 Public Procurement Performance" through the Procurement Data Hub System.

Provided by Public Procurement Service

Last year, the domestic public procurement market reached 225.1 trillion won, up 7.9% from the previous year. Since statistics began in 2015, the scale of public procurement has shown a continuous upward trend. The market grew steadily from 110 trillion won in 2015 to 175.8 trillion won in 2020, 184.2 trillion won in 2021, 196 trillion won in 2022, and 208.5 trillion won in 2023. Last year's figure is more than twice the size recorded in 2015.

Notably, last year's public procurement market accounted for about 9% of Korea's GDP. This underscores the growing impact of public procurement on domestic demand and the livelihood economy.

By institution, as of last year, local governments accounted for the largest share of public procurement at 94.1 trillion won (41.8%), followed by public institutions at 80.5 trillion won (35.8%), and national agencies at 50.5 trillion won (22.4%).

By project type, construction accounted for 85.7 trillion won (38.1%), goods for 84.3 trillion won (37.4%), and services for 55.1 trillion won (24.5%). By company size, small and medium-sized enterprises accounted for 142.1 trillion won (63.1%), mid-sized companies for 34.8 trillion won (15.5%), large companies for 31.5 trillion won (14.0%), and others such as non-profit organizations for 16.7 trillion won.

In terms of procurement systems, transactions conducted through Nara Marketplace (the national integrated electronic procurement system) amounted to 145.1 trillion won, accounting for 64.5% of the total. In addition, transactions through institution-specific procurement systems and non-electronic contracts amounted to 80 trillion won (35.5%).

The share of Nara Marketplace transactions in the public procurement market is expected to grow further. This is due to the recent launch of the next-generation Nara Marketplace, which is integrating previously independently operated public institution procurement systems into Nara Marketplace. The share of Nara Marketplace in public procurement transactions has steadily increased, from 60.8% in 2021 to 62.0% in 2022, 62.6% in 2023, and 64.5% in 2024.

Further details on public procurement-related statistics can be found on the Procurement Data Hub System.

Baek Seungbo, Deputy Commissioner of the Public Procurement Service, stated, "Public procurement statistics are a core infrastructure for data-driven procurement administration and a key channel between procurement policy and the public. The Public Procurement Service will establish a dedicated procurement data team to systematically manage procurement data, and will actively promote measures to expand the collection, integration, processing, analysis, and disclosure of procurement data to enhance its policy and industrial applications."

This content was produced with the assistance of AI translation services.