Public Institutions' Purchases of SME Products Reach 126 Trillion Won Last Year, Exceeding Target

by Lee Seohee

Published 28 Apr.2026 13:10(KST)

Third-Highest Performance Since Introduction of the System

Last year, public institutions' purchases of SME products recorded the third-highest performance since the introduction of the system.

Signboard of the Ministry of SMEs and Startups. Ministry of SMEs and Startups

On April 28, the Ministry of SMEs and Startups announced at a Cabinet meeting that, in 2025, public institutions' purchases of SME products reached 126.2 trillion won, surpassing the original target of 119.5 trillion won.

According to Article 5 of the "Act on the Promotion of Purchases of SME-Manufactured Products and Support for Market Expansion (Market Support Act)," 847 public institutions are required to purchase more than 50% of their total procurement from SME products.

This result marks the third-highest performance since the system was introduced in 2006, demonstrating that the public procurement target ratio system is making a tangible contribution to securing public market access for SMEs.

Meanwhile, the Ministry of SMEs and Startups annually selects the top 20 institutions as "Outstanding Institutions for the Purchase of SME Products" among the organizations surveyed for joint procurement, where the proportion of SME product purchases exceeds 85% and the purchase amount exceeds 300 billion won, in order to encourage active participation by public institutions.

This year, Gyeonggi Housing & Urban Development Corporation, Korea Plant Service & Engineering (KPS), the Ministry of Education, Gimhae-si in Gyeongnam, Ansan-si in Gyeonggi, Jeonnam Provincial Office of Education, Wonju-si in Gangwon, and Goyang-si in Gyeonggi, among the outstanding institutions, achieved SME product purchase ratios of over 92%. In particular, Gyeonggi Housing & Urban Development Corporation posted the highest performance for two consecutive years with a ratio of 94.8%.

The Ministry plans to continue its policy efforts this year to ensure that the public procurement system remains a pillar supporting SMEs' access to the public market. First, it will encourage the expansion of SME product purchases by holding explanatory sessions and promotional networking events on the public procurement system for public institutions. The Ministry also plans to conduct surveys of public institutions to review their performance and actively support those with low purchase amounts in meeting their targets.

Shim Jaeyoon, Director General for Global Growth Policy at the Ministry of SMEs and Startups, said, "Amid challenging economic conditions such as high oil prices, high inflation, and the strengthening of global protectionism, the public procurement system is serving as a pillar supporting the sales and market access of SMEs. Going forward, we will further enhance the effectiveness of the public procurement system by significantly increasing the number of public institutions subject to mandatory purchasing and ensuring that innovative companies and products can enter the public procurement market smoothly, with the goal of raising SME product purchases to 170 trillion won by 2030."