Former National Election Commission Chairman Noh Tae-ak inspects preparations for vote counting [Yonhap News file photo]Amid scrutiny over the scale of negotiated contracts at the National Election Commission (NEC), suspicions are intensifying as a "concentration phenomenon" has emerged, with the top five companies by contract value accounting for half of the total negotiated contract amount.

According to data secured by Joo Jin-woo, a lawmaker from the People Power Party serving on the Special Committee for the State Audit to Investigate the Truth and Reform Election Management Regarding the Shortage of Ballot Papers in the June 3 Local Elections, the contract amounts for the top five companies in negotiated contracts over the past five years (2022-May 26, 2026) totaled approximately 118.5 billion won.

The NEC's negotiated contract amount over five years is approximately 241.7 billion won. The top five companies accounted for 49% of the total amount, meaning half of the contracts went to the top five.

The contract value with the top company, one of South Korea's major telecommunications providers, was approximately 34.5 billion won. The second company, a manufacturer of computer peripherals, had a contract value of 33.6 billion won, and the third company, an IT service provider, had a contract value of 20.4 billion won. The fourth company reached 15.8 billion won, and the fifth reached 14.1 billion won.

Lawmaker Joo pointed out that companies with an unusually large number of contracts were also noticeable, raising suspicions of "contract splitting."

The company with the most contracts had 24 cases, and eight other companies had signed multiple contracts in the range of 20 cases. A total of 30 companies exceeded 10 contracts.

For the company with 24 contracts, the total contract value was 380 million won, meaning each contract was for approximately 16 million won.

Furthermore, while most of the top companies in contract value were IT-related firms dealing with computer equipment, networks, security, and election systems, and acknowledging that the NEC is an organization with high IT dependence, Lawmaker Joo pointed out suspicions that certain companies have enjoyed a monopolistic position for several years.

 The National Election Commission in Gwacheon, Gyeonggi Province, on the 22nd. The National Assembly's Special Committee for the State Audit to Investigate the Truth and Reform Election Management Regarding the Shortage of Ballot Papers in the June 3 Local Elections will begin its full-fledged activities with an institutional report from the NEC on the 23rd.  [Yonhap News]Lawmaker Joo pointed to the fact that the NEC and the Seoul Metropolitan Election Commission signed a total of 18 negotiated contracts worth 550 million won with a printing company located in Naju, Jeonnam, a long distance away, last year and this year, and stated that he would request an investigation from the Anti-Corruption and Civil Rights Commission regarding potential conflicts of interest.

Lawmaker Joo argued that negotiated contracts are primarily used when time is short and security is required, and typically should not exceed 20 million won per contract. He questioned why the NEC and Seoul Metropolitan Election Commission, despite numerous printing companies in the 수도권 (Seoul Metropolitan Area), chose to contract with a company over 300 km away, incurring additional delivery costs for printed materials.

Lawmaker Joo stated, "It has been confirmed that negotiated contracts at the NEC are concentrated in a few companies, and specific companies have repeatedly secured contracts," and added, "We will thoroughly investigate suspicions of collusion between the NEC and its negotiated contract partners, including monopolies and contract splitting by specific companies."

Lawmaker Joo had previously criticized on the 19th that an exhaustive analysis of 2,665 NEC contracts over five years revealed that 82.1% were negotiated contracts, reaching as high as 87.7% last year.

The Act on Contracts to Which the State is a Party stipulates that general competition is the principle for state agency contracts, with negotiated contracts being an exception. The NEC, which has not undergone external audits, has been pointed out for its significantly high proportion of negotiated contracts.

As unusual circumstances regarding negotiated contracts with specific companies were also confirmed on this day, it is expected that the Special Committee for the State Audit will investigate the appropriateness of the reasons for negotiated contracts, suspicions of collusion with specific companies, and issues of conflict of interest.