Public Procurement of SME Products Reaches Record High of 131 Trillion Won Last Year

Outstanding SME Product Purchase Ratios at 20 Institutions, Including Gyeonggi Housing and Urban Development Corporation and Daejeon Metropolitan Office of Education

The total value of products purchased from small and medium-sized enterprises (SMEs) by public institutions in 2024 reached an all-time high.

On April 29, the Ministry of SMEs and Startups announced at a Cabinet meeting that the amount of SME products purchased by public institutions in 2024 amounted to 131 trillion won. This is the largest purchase amount since the implementation of the public procurement system in 2006. According to the "Act on the Promotion of Purchases of SME Products and Support for Market Expansion," individual public institutions are required to purchase more than 50% of their total procurement from SME products.

The Ministry of SMEs and Startups selects "Outstanding Institutions for SME Product Procurement" among public institutions surveyed for public procurement. To qualify, institutions must have an SME product purchase ratio of at least 85% and must have purchased at least 300 billion won worth of SME products. Last year, 20 institutions were selected, including Gyeonggi Housing and Urban Development Corporation, Daejeon Metropolitan Office of Education, Yongin City in Gyeonggi Province, and the Ministry of Education.

In particular, among these institutions, Gyeonggi Housing and Urban Development Corporation recorded the most outstanding performance, purchasing SME products worth 469.3 billion won out of a total of 495.3 billion won, representing a ratio of 94.7%. This is an increase of approximately 257 billion won (up 121%) compared to the previous year's 212.3 billion won.

The SME product purchase target amount submitted this year by 846 public institutions subject to the Market Expansion Support Act totals 119.5 trillion won. This is about 75% of the total procurement amount of these institutions. Considering that the statutory target purchase ratio for SME products is 50%, the public procurement target ratio system is evaluated as being effective in helping SMEs secure public sales channels.

The Ministry of SMEs and Startups plans to continue its policy efforts this year to ensure that the public procurement system remains a strong support for SMEs to secure public sales channels. First, the ministry will encourage the purchase of SME products by holding explanatory sessions and promotional exchange meetings on the public procurement system for public institutions. It will also conduct surveys to check performance and actively support institutions in achieving their targets by encouraging increased purchases at institutions with low procurement amounts.

Lee Soonbae, Director General for Global Growth Policy, stated, "In a challenging economic environment characterized by high inflation and high interest rates, as well as a global trend toward stronger protectionism, public procurement performance has served as a pillar for SMEs to secure sales channels and boost revenues." He added, "In 2025, we will make every effort to ensure that public procurement plans are implemented without setbacks and play a greater role in securing sales channels for SMEs through active cooperation with public institutions."