September 13 Procurement Market Report: Even Kyobo Life Has Just One Deal

One Contract, One Company: A Sign of Fragmentation in the Procurement Market

Eighty companies that have entered the government procurement market were each found to have left only a single procurement record. Aggregated public data shows that the 80 companies with confirmed procurement registrations recorded exactly 80 contracts in total—an average of just one each. This indicates that rather than a market structure dominated by a few large players sweeping up contracts, the current reality of procurement is a 'fragmented' pattern in which countless small and medium-sized enterprises knock on the public market's door just once.

A closer look at the list reveals an unusually broad range of industries. There are environmental and forestry companies such as Daehun Environment, Daekyung Forest Development, and Forest Resource Development, alongside numerous design, surveying, and engineering firms including Hanin Architecture, Hanbit Engineering Architects, and Geumgang Geographic Information. The list also spans life insurance (Kyobo Life Planet Insurance), elevator maintenance (Samjung Elevator), e-commerce (MyShopOnShop), and tourism (Namdo Tourism). Within the framework of Public Procurement Service-registered companies, construction, platform, finance, and services are all mixed together.

Wide Opportunity, Short Staying Power

This structure cuts both ways. On the positive side, the barrier to public procurement has lowered compared to the past, allowing regional small and medium-sized enterprises and even small limited-liability corporations to enter the market. In fact, many of the confirmed companies are regionally based or small operators specialized in particular fields. Cases of entry driven by technological capability, such as Innovation Safety Technology and Astone Engineering, also stand out.

However, 80 one-off track records also mean these contracts did not lead to repeat business. Unlike the private market, the public market imposes high barriers in bidding, contract management, and administrative procedures, and a considerable number of small and medium-sized enterprises drop out after their first contract because they cannot bear the management burden. Borrowing Nelson's old maxim to put the nation's business first, the public market demands administrative capacity bordering on an 'obligation' for companies, and only those that can afford that cost survive.

Expanding Procurement Entry by Service and Digital Sectors

One notable point in the industry composition is the share of service businesses. Many companies with planning, digital, and platform characteristics were confirmed, including G&N Planning, Whyble, Interz, Saeroi, and Yeonam. Where public procurement was once focused on goods, the expansion of services and consulting in recent years suggests the data reflects a trend of companies with software capabilities broadening their participation.

That said, these service companies, too, remain at a single track record, making it hard to judge whether expanded participation has translated into a stable order pipeline. If anything, one could interpret that the service sector, with its smaller and more one-off contract units, may show an even more pronounced tendency toward fragmentation.

Outlook: Surviving in a Market Without Winners

The structure in which 80 companies split 80 contracts has a competitive upside: no single dominant player exists in the procurement market. Yet without sustained participation, public agencies will repeatedly incur the learning costs of contracting with new vendors each time. The key question going forward is whether the Public Procurement Service's dedicated small-business purchase and negotiated contract programs can retain companies that would otherwise drop out.

Looking ahead, as demand for digital services continues to grow in the public sector, the number of companies participating in the procurement market is expected to increase further. The issue is not the volume of participation but the quality of retention. Only when a growing share of companies move from a first contract to repeat orders can a fragmented market evolve into a healthy ecosystem. For individual companies, it has become all the more important to treat their first procurement contract not as an end, but as a starting point for building administrative capability.