Gyeonggi Province to Improve Public Bidding Status Investigation
Six Years of Results Since Nation's First Implementation in 2019
Preemptive Inspections Uncover 33% of Substandard Companies in Public Bidding
Gyeonggi Province will completely overhaul its “public bidding status investigation” system to eradicate “paper companies” (fake companies), a chronic problem in the construction industry.
On December 28, Gyeonggi Province announced that it has established an “Improvement Plan for Public Bidding Status Investigation” based on the results of the past six years of operation, and will implement it in earnest starting next year.
The public bidding status investigation in Gyeonggi Province is a preemptive inspection system that screens out ineligible and paper companies through on-site and document investigations to determine whether companies participating in construction bids ordered by the province meet legal registration requirements. Gyeonggi Province was the first in the nation to implement this system in 2019, and it has since spread nationwide to the Ministry of Land, Infrastructure and Transport, Seoul Metropolitan Government, Chungcheongnam-do Province, and others.
From 2019 to October this year, Gyeonggi Province conducted a total of 2,027 status investigations, sanctioning 670 unfair companies and achieving a sanction rate of 33.1%. During the same period, an analysis of the bidding rate-which indicates the proportion of construction companies participating in bids-showed a 39% decrease from 544% in 2019 to 331% as of October 2025, indicating a decline in bids from substandard companies.
Based on these results, the province has established the “Improvement Plan for Public Bidding Status Investigation,” which focuses on strict investigations and sanctions against construction companies that cause substandard construction, as well as various support measures for small businesses.
The plan includes several measures to foster a culture of legal compliance in the construction industry: providing a “self-diagnosis checklist” in bid announcements to help companies prepare for investigations; conducting “policy promotion and awareness improvement” training using the mandatory education hours of the Construction Association; and implementing investigations utilizing “AI analysis” based on data such as violation histories to enable early identification of substandard companies.
To encourage participation by sound companies, the province will also implement measures to reduce the burden of the investigation process, such as amending ordinances to simplify the preparation of investigation materials and extend grace periods, as well as reflecting suggestions from the construction industry through regular surveys.
In addition, the province plans to meticulously and sequentially pursue legal revisions and organizational restructuring for more efficient investigations starting from the New Year of 2026.
Kang Seongseub, Director of Construction at Gyeonggi Province, stated, “The public bidding status investigation is a key system for creating a fair construction market,” and added, “Going forward, we will thoroughly block illegal and substandard companies, while at the same time promoting balanced construction policies so that honest but struggling small businesses can grow into sound companies.”
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