Aug. 22 Procurement Market Report: 80 Procurement Data Points Released Including Daehun Environment and Namdo Tourism... Many Local SMEs Included

80 Government Procurement Records Released... Majority are SMEs and Regional Firms

It has been confirmed that public data in the government procurement sector contains a total of 80 procurement records spanning 80 companies. Distributed at one record per company, the data is dominated by regional SMEs and specialized firms in sectors such as environment, forestry, architectural design, tourism, safety technology, and elevator maintenance, rather than large corporations. The fact that procurement data was collected across such a wide range of industries indicates that public procurement is expanding into extensive service and facility sectors, rather than being limited to specific industries.

The list of released companies features prominent firms in environment, forestry, design, and surveying, such as Daehun Environment, Daegyeong Forestry Development, Ltd. Forest Resource Development, Hanin Joint Architects Office, Hanbit Engineering & Architects Office, and Geumgang Geographic Information. This list also includes service sector companies like Namdo Tourism, My Shop On Shop, and Saeroi, as well as facility, safety, and engineering firms like Samjeong Elevator, Jinwoo ATS, Hyuksin Safety Technology, and Ace Stone Engineering. Notably, financial sector firms like Kyobo Life Planet Life Insurance also made the list.

Structure of the Public Procurement Market Viewed Through Industry Distribution

Why the Environment and Forestry Sectors Show Relatively High Proportions

The presence of numerous environment and forestry-related companies in the data is interpreted as a result of recent government policies on national land greening, wildfire response, and carbon neutrality driving public procurement demand. As budgets for forest healing and forest welfare steadily expand, regional forestry development companies have gained a foothold to enter the procurement market. The inclusion of architectural firms and geographic information companies also reflects the continuous implementation of national infrastructure projects, such as public architectural design services, topographic surveys, and cadastral resurveys.

Stable Demand in the Facilities and Safety Sectors

Elevator maintenance, safety inspections, and engineering inspections are characterized by recurring demand over a certain period once a procurement contract is signed. The inclusion of data from companies like Samjeong Elevator, Hyuksin Safety Technology, and Jinwoo ATS supports this trend. Since maintenance budgets for public institution buildings are stably allocated each year, the procurement market serves as a buffer for SMEs in these sectors, offsetting the volatility of private sector contracts.

Implications of the One-Record-Per-Company Structure

The fact that each company in this data holds only one record shows a structure where a majority of SMEs are participating evenly in the procurement market, rather than contract awards being concentrated in specific large firms. This distributed contracting pattern is analyzed to be influenced by the expansion of SME-exclusive procurement and small-scale direct purchase systems via KONEPS. In particular, the inclusion of many small-scale specialized firms in the form of LLCs or corporations implies that the barrier to entry for procurement participation has lowered compared to the past.

Outlook and Implications

The public procurement market is expected to see an acceleration in the diversification of participating industries alongside digital transformation. The presence of IT and information service-oriented companies in the data is read as a signal foreshadowing this trend. However, the prevalence of one-off records per company highlights the challenge of securing sustainability to lead to re-contracts. Experts point out that converting to long-term contracts based on quality competitiveness after entering the procurement market is a key task for SMEs. As long as the government's policy to expand SME procurement remains in place, this diversified procurement ecosystem, spanning traditional fields like environment, forestry, facilities, and safety as well as digital service sectors, is expected to continue expanding.