Public Procurement Contracts Exceed 208 Trillion Won... Largest Ever Since Statistics Compilation

Last year, the scale of public procurement contracts reached 208.6 trillion won, the largest amount since statistics began to be compiled.

On the 3rd, the Public Procurement Service (PPS) analyzed in the "2023 Public Procurement Statistical Yearbook" that the scale of public procurement last year achieved an all-time high since the statistics started in 2015, playing a role in revitalizing domestic demand and driving the development of the domestic economy. This represents an increase of 12.6 trillion won (6.4%) compared to the previous year.

Provided by Public Procurement Service

By institution, local governments had the largest public procurement scale at 90.8 trillion won (up 8.8% from the previous year). This was followed by public institutions at 72 trillion won (up 1.1%) and national agencies at 45.8 trillion won (up 2.6%).

By project type, construction was 80.1 trillion won (up 4.5%), goods 78.2 trillion won (up 5.5%), and services 50.3 trillion won (up 2.6%).

The transaction performance of Nara Market, the integrated electronic procurement platform for public institutions, was 130.6 trillion won, accounting for 62.6% of total public procurement. The share of Nara Market in public procurement transactions has steadily increased from 60.1% in 2020 to 60.8% in 2021 and 62.0% in 2022.

Among procurement policy statistics supporting market access for small and venture companies, the number of companies designated as excellent procurement product suppliers was 169 (down 70), and designated products were 251 (down 79), both decreasing compared to last year. Conversely, supply performance increased by 18.4% year-on-year to 4.8 trillion won. Annual supply performance of excellent products has increased from 3.5 trillion won in 2020 to 4 trillion won in 2021 and 2022, and 4.8 trillion won in 2023.

The number of companies registered in Venture Nara increased to 473 (up 32, 7.3%), and the number of products rose to 3,496 (up 311, 9.8%). However, order performance decreased to 8,000 cases (down 62, 0.8%) and 143.1 billion won (down 16.1 billion won, 10.1%). Annual order amounts in Venture Nara fluctuated with 81.3 billion won in 2020, 125.5 billion won in 2021, 159.2 billion won in 2022, and 143.1 billion won last year.

Lim Gi-geun, Administrator of the Public Procurement Service, said, “We hope that public procurement statistics will be usefully utilized by small, venture, and startup companies aiming to enter the public market. The PPS will continue to produce more accurate and diverse policy statistics so that public purchasing power can serve as a foundation for revitalizing the domestic economy.”