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FRAMEWORK ACT ON THE CONSTRUCTION INDUSTRY

Wholly Amended by Act No. 5230, Dec. 30, 1996

Amended by Act No. 5386, Aug. 28, 1997

Act No. 5453, Dec. 13, 1997

Act No. 5965, Apr. 15, 1999

Act No. 6112, Jan. 12, 2000

Act No. 6640, Jan. 26, 2002

Act No. 6627, Jan. 26, 2002

Act No. 6802, Dec. 18, 2002

Act No. 6893, May 29, 2003

Act No. 6938, Jul. 25, 2003

Act No. 7306, Dec. 31, 2004

Act No. 7428, Mar. 31, 2005

Act No. 7473, Mar. 31, 2005

Act No. 7513, May 26, 2005

Act No. 7697, Nov. 8, 2005

Act No. 7796, Dec. 29, 2005

Act No. 8477, May 17, 2007

Act No. 8863, Feb. 29, 2008

Act No. 8852, Feb. 29, 2008

Act No. 8971, Mar. 21, 2008

Act No. 9875, Dec. 29, 2009

Act No. 9999, Feb. 4, 2010

Act No. 10339, jun. 4, 2010

Act No. 10719, May 24, 2011

Act No. 11015, Aug. 4, 2011

Act No. 11181, Jan. 17, 2012

Act No. 11466, jun. 1, 2012

Act No. 11576, Dec. 18, 2012

Act No. 11690, Mar. 23, 2013

Act No. 11794, May 22, 2013

Act No. 12012, Aug. 6, 2013

Act No. 12580, May 14, 2014

Act No. 12591, May 20, 2014

Act No. 13469, Aug. 11, 2015

Act No. 14015, Feb. 3, 2016

Act No. 14545, Jan. 17, 2017

Act No. 14708, Mar. 21, 2017

Act No. 14849, Aug. 9, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to ensure the proper execution of construction works and the sound development of the construction industry by providing for fundamental matters concerning the survey, design, execution, supervision, maintenance and management, technological management, etc. of construction works and for other matters necessary for the registration of construction business, contracts for construction works, etc.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 2 (Definitions)
The definitions of terms used in this Act shall be as follows:
1. The term "construction industry" means construction business and construction service business;
2. The term "construction business" means the business of performing construction works;
3. The term "construction service business" means the business of rendering services related to construction works (hereinafter referred to as "construction services"), such as surveys, design, supervision, business management, and maintenance and management in respect of construction works;
4. The term "construction works" means engineering works, building works, industrial equipment works, landscaping works, environmental installation works, and other works to install, maintain and repair facilities (including site preparation works for installing such facilities), regardless of titles, as well as installation and dismantling works, etc. of machinery and equipment and other structures: Provided, That the following works shall be excluded:
(a) Electric works under the Electrical Construction Business Act;
(b) Information and communications works under the Information and Communications Construction Business Act;
(c) Fire-fighting system installation works under the Fire-Fighting System Installation Business Act;
(d) Cultural heritage maintenance works under the Act on Cultural Heritage Maintenance, Etc.;
5. The term "general construction works" means any works to construct facilities under comprehensive planning, management and coordination;
6. The term "specialized construction works" means any works to construct a part of facilities or any works in a specialized field;
7. The term "constructor" means a person who runs construction business after registration, etc. under this Act or other Acts;
8. The term "construction management" means the management of construction works, including planning, feasibility studies, analysis, design, procurement, contracts, execution management, supervision, assessment and follow-up management;
9. The term “construction management at-risk” means a method by which a constructor who has filed for registration of the business category of performing general construction works performs construction management for construction works in the pre-construction phase as well as constructing facilities within a fixed price and period through comprehensive planning, management and coordination under a separate agreement on execution and construction management with the relevant project owner, in the construction phase;
10. The term "project owner" means a person who awards contracts for construction works to constructors: Provided, That any contractor who subcontracts construction works contracted to him/her to others shall be excluded;
11. The term "contract" means a contract under which, regardless of titles, such as a prime contract, subcontract and consignment, one contracting party promises to complete construction works and the other contracting party commits itself to make payments for the results of the works;
12. The term "subcontract" means a contract which a contractor concludes with a third party to outsource all or part of construction works contracted to him/her;
13. The term "contractor" means a constructor awarded a contract for construction works by any project owner, including constructors who subcontract in cases of subcontracts;
14. The term "subcontractor" means a person awarded a subcontract for construction works by a contractor;
15. The term "construction engineer" means a person deemed to have expertise or skills in construction works pursuant to related Acts and subordinate statutes.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 3 (Basic Ideas)
The basic idea of this Act is to contribute to the national economy and the security of the daily life of the citizens by developing the construction industry in a balanced manner to attain international competitiveness in the fields of design, supervision, execution, business management, maintenance and management, etc.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 4 (Relationship with other Acts)
Except as otherwise expressly provided for in other Acts, this Act shall apply to the construction industry: Provided, That this Act shall preferentially apply to matters concerning the scope of construction works and the registration of construction business, and Articles 6 and 26 and Chapter VIII (Articles 69 through 79, 79-2 and 80) shall apply to construction service business, notwithstanding the provisions of other Acts. <Amended by Act No. 12012, Aug. 6, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 5 (Determination of Standards for Foreign Constructors)
The Minister of Land, Infrastructure and Transport may determine standards for recognizing qualification, academic background, career, etc. obtained in a foreign country with respect to construction business, if necessary for registering construction business of foreigners or foreign corporations. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 6 (Establishment of Master Plans for Construction Industry Promotion)
(1) The Minister of Land, Infrastructure and Transport shall establish and implement a master plan for the promotion of the construction industry every five years in order to foster the construction industry, develop construction technology, and to ensure the safety and quality of construction works, etc. <Amended by Act No. 11690, Mar. 23, 2013>
(2) A master plan for construction industry promotion referred to in paragraph (1) shall include the following:
1. Basic direction-setting for policies to promote the construction industry;
2. Measures for the development of construction technology and training of construction technical human resources;
3. Internationalization of the construction industry and support for its entry into overseas markets;
4. Measures for ensuring the safety, environmental conservation and quality of construction works;
5. Measures for the growth of small or medium construction business and small or medium construction services business;
6. Measures for improving the productivity of construction works and other matters prescribed by Presidential Decree.
(3) The Minister of Land, Infrastructure and Transport may establish and implement an annual plan within the boundary of the master plan for the promotion of the construction industry referred to in paragraph (1) in consideration of the trends in the construction market, development of construction technology, etc. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 7 (Responsibilities of Construction-Related Entities)
(1) The Government shall determine and disseminate standards for the design, execution, supervision and maintenance and management of construction works, the quality and standards of construction materials, the methods of contracting, etc. to ensure the quality and safety of construction works and endeavor to provide information, such as the execution capacity, capital, management status and performance records of construction works of constructors.
(2) Any project owner of construction works shall select a competent constructor according to fair standards and procedures to ensure that facilities are constructed suitable for public safety and welfare, and shall endeavor that the construction works shall be appropriately executed.
(3) A constructor shall observe the Acts and subordinate statutes governing construction works and construction services to ensure the quality and safety of facilities, shall conscientiously perform his/her duties in compliance with design drawings, specifications and terms and conditions of the relevant contract, etc., and shall not provide or publicize any false information on the performance records of construction works, current status of affiliated engineers, financial status, and execution capacity.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
CHAPTER II REGISTRATION OF CONSTRUCTION BUSINESS
 Article 8 (Categories of Construction Businesses)
(1) Construction businesses shall be classified into a business of performing general construction works and a business of performing specialized construction works.
(2) The specific categories and scope of duties of construction businesses shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 9 (Registration, etc. of Construction Business)
(1) Any person who intends to run construction business shall file for registration with the Minister of Land, Infrastructure and Transport by category of business prescribed by Presidential Decree: Provided, That where any person intends to perform minor construction works prescribed by Presidential Decree as his/her main business, he/she may run a construction business without such registration. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Any person who intends to file for registration of construction business pursuant to paragraph (1) shall file an application therefor with the Minister of Land, Infrastructure and Transport, as determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Except as otherwise expressly provided for in any other Act, no corporation in which the State or any local government has invested at least 50 percent of its capital or which is a nonprofit corporation shall file an application for registration of construction business under paragraph (1).
(4) Deleted. <by Act No. 14015, Feb. 3, 2016>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 9-2 (Issuance, etc. of Registration Certificates)
(1) Where construction business has been registered, the Minister of Land, Infrastructure and Transport shall issue a construction business registration certificate and a construction business registration booklet to the relevant applicant, as determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(2) A person who has been issued a construction business registration certificate or a construction business registration booklet pursuant to paragraph (1) shall, when any matter prescribed by Presidential Decree from among the entries in the relevant certificate or booklet has been altered, file an application for alteration with the Minister of Land, Infrastructure and Transport within 30 days, as determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Where a construction business registration certificate or a construction business registration booklet under paragraph (1) is lost or spoilt, it may be re-issued, as determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 9-3 (Education on Construction Business)
(1) A person who has his/her construction business registered under Article 9 (1) (excluding cases where a constructor registers another category of business additionally) shall receive education concerning construction business ethics and practice conducted by the Minister of Land, Infrastructure and Transport within six months from the registration date of the construction business. In such cases, if a person subject to the education is a corporation, at least one executive officer listed in the register (including the representative) thereof shall receive the education.
(2) The Minister of Land, Infrastructure and Transport may conduct education of construction business ethics and practice for the constructors who are not subject to the education under paragraph (1), and in such cases, the period of suspension of business, etc. may be mitigated for those who have completed such education, as provided for in Article 84.
(3) Methods, standards, and procedures for the education under paragraphs (1) and (2), education institutions, and other necessary matters shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 13469, Aug. 11, 2015]
 Article 10 (Standards for Registration of Construction Business)
The following which constitutes the standards for registration of construction business referred to in Article 9 (1) shall be prescribed by Presidential Decree:
1. Technical capacity;
2. Capital (referring to the appraisal value of assets in cases of individuals; hereinafter the same shall apply);
3. Facilities and equipment;
4. Other necessary matters.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 11 (Restrictions on Indications and Advertisements)
(1) No one who fails to file for registration of construction business by business category pursuant to Article 9 shall make any indication or advertisement on the business place, advertizing materials, etc. to the effect that he/she is the constructor of the relevant business category, or that may be leading to suggest he/she is the constructor of the relevant business category.
(2) The Minister of Land, Infrastructure and Transport may require a public official under his/her control to take appropriate measures, such as removing advertizing materials by force, against a person who has made any indication or advertisement in violation of paragraph (1). <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 12 Deleted. <by Act No. 8477, May 17, 2007>
 Article 13 (Disqualification for Registration of Construction Business)
(1) None of the following persons (in cases of a corporation, including where it has any of the following executives) shall file for the registration of construction business under Article 9 (1). The same shall also apply to a foreigner or foreign corporation that falls under any of the following cases or a similar case in the relevant country: <Amended by Act No. 10719, May 24, 2011; Act No. 11466, Jun. 1, 2012; Act No. 12580, May 14, 2014; Act No. 14708, Mar. 21, 2017>
1. A person who was declared bankrupt but has not been reinstated;
2. A person under adult guardianship or a person under limited guardianship;
3. Any of the following persons whose registration of construction business was cancelled under Article 82-2 or 83. In such cases, if a person whose registration of construction business was cancelled is a corporation, a person who engaged in conduct which was the ground for such cancellation and its representative shall be included:
(a) A person in whose case ten years have not passed since his/her registration of construction business was cancelled on the ground provided for in subparagraph 5 of Article 83;
(b) A person whose registration of construction business was cancelled on any ground provided for in Article 82-2 (3) and subparagraphs 1, 3-3, 8, 10 and 13 of Article 83 and in whose case five years have not passed since such cancellation;
(c) A person whose registration of construction business was cancelled on the ground provided for in subparagraph 2 of Article 83 and in whose case two and a half years have not passed since such cancellation;
(d) A person in whose case one and half years have not passed since his/her registration of construction business was cancelled for reasons other than those under Article 82-2 (3), and subparagraphs 1, 3-3, 4, 5, 8, 10, and 13 of Article 83;
4. A person sentenced to imprisonment without labor or heavier for violation of this Act or the Housing Act, in whose case three years have not passed from the date the execution of the relevant punishment was completed (including where such execution is deemed completed) or exempted;
5. A person sentenced to imprisonment without labor or heavier for committing any crime provided for in Articles 129 through 133 of the Criminal Act, in whose case five years have not passed from the date the execution of the relevant punishment was completed (including where such execution is deemed completed) or exempted;
6. A person under suspended execution of sentence for a violation of subparagraph 4 or 5.
(2) Deleted. <by Act No. 7697, Nov. 8, 2005>
(3) The Minister of Land, Infrastructure and Transport shall notify a person disqualified for registration of construction business under paragraph (1), among applicants for such registration under Article 9 (2), of the ground therefor. <Amended by Act No. 10719, May 24, 2011; Act No. 11690, Mar. 23, 2013>
 Article 14 (Continued Works after Disposition, etc. of Business Suspension)
(1) A constructor subject to a disposition of business suspension or cancellation of registration pursuant to Article 82, 82-2, or 83 and his/her general successor may continue to perform construction works for which he/she has concluded a contract before the disposition is issued or for which he/she has commenced the construction works with permission, authorization, etc. under related Acts and subordinate statutes. The same shall also apply where registration of construction business is cancelled by a report on the closure of business filed under Article 20-2.
(2) A constructor subject to a disposition of business suspension or cancellation of registration pursuant to Article 82, 82-2, or 83 and his/her general successor shall notify without delay the project owner of the relevant construction works of the details of the disposition, and where the constructor is a subcontractor, he/she shall notify the project owner and the contractor of the details of such disposition. The same shall also apply where registration of construction business is cancelled by a report on the closure of business filed under Article 20-2.
(3) Where any constructor continues construction works after his/her registration of construction business has been cancelled under paragraph (1), he/she shall be deemed a constructor until he/she completes such works.
(4) Any project owner of construction works may terminate a contract agreement within 30 days from the date he/she receives notification under paragraph (2) from the relevant constructor or he/she becomes aware of such fact except in extenuating circumstances.
(5) Where an project owner receives notification referred to in paragraph (2) from a subcontractor who is the constructor, he/she may request the contractor to terminate the subcontract of the relevant works.
(6) Where a contractor receives notification referred to in paragraph (2) from a subcontractor, he/she may terminate the subcontract within 30 days from the date he/she receives such notification or becomes aware of such disposition (or the date he/she receives a request for cancellation of the subcontract pursuant to paragraph (5), if applicable) except in extenuating circumstances.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 15 Deleted. <by Act No. 5965, Apr. 15, 1999>
 Article 16 (Qualifications for Performing Construction Works)
(1) A constructor who intends to be awarded a contract for general construction works shall file for registration of the business category of performing the relevant general construction works: Provided, That in any of the following cases, a constructor may be awarded a contract for general construction works without filing for registration of the business category of performing the relevant general construction works: <Amended by Act No. 11690, Mar. 23, 2013>
1. Where a constructor who has filed for registration of the business category of performing specialized construction works is awarded a contract jointly with a constructor who has filed for registration of the business category of performing general construction works on condition that the former only performs specialized construction works from among works for which the latter executes under comprehensive planning, management, and coordination;
2. Where a constructor who has filed for registration of the business category of performing specialized construction works is awarded a contract for minor construction works prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, which are comprised of at least two categories of specialized construction works or which do not require the comprehensive planning, management, and coordination;
3. Where a constructor who has filed for registration of the business category of performing specialized construction works is awarded a contract for specialized works as well as its appurtenant works;
4. Where a constructor who has filed for registration of the business category of performing at least two categories of specialized construction works is awarded a subcontract for compound works comprised of such specialized works;
5. Where deemed necessary by an project owner to improve the quality of works or the efficiency of execution and prescribed by Presidential Decree in consideration of technical difficulty, correlation between specialized construction works making up construction works, etc.
(2) A constructor who intends to be awarded a contract for specialized construction works shall file for registration of the business category of performing such specialized construction works: Provided, That in any of the following cases, a constructor may be awarded a contract for specialized construction works without filing for registration of the business category of performing such works:
1. Where a constructor who has filed for registration of the business category of performing general construction works is awarded a contract for any work which belongs to appurtenant works of the construction works already performed or being performed by him/her under contract, and which corresponds to specialized construction works;
2. Where deemed necessary by an project owner to improve the quality of works or the efficiency of execution and prescribed by Presidential Decree in consideration of technical difficulty, particulars of the relevant construction works, etc.
(3) Appurtenant works referred to in paragraphs (1) 3 and (2) 1 mean works subordinate to main works and the scope of, and standards for such appurtenant works shall be prescribed by Presidential Decree.
(4) Detailed matters concerning the methods of contracts referred to in paragraphs (1) and (2) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 17 (Transfer, etc. of Construction Business)
(1) Any constructor shall file a report to the Minister of Land, Infrastructure and Transport as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport in any of the following cases: <Amended by Act No. 11466, Jun. 1, 2012; Act No. 11690, Mar. 23, 2013>
1. Where a constructor intends to transfer his/her construction business;
2. Where a corporate constructor intends to merge with another corporation: Provided, That where a corporate constructor merges a corporation that is not a constructor shall be excluded.
(2) Where a person who intends to file a report on the transfer of construction business under paragraph (1) 1 has received a disposition placing restrictions on his/her eligibility to participate in tenders as an unjust operator under the Act on Contracts to Which the State Is a Party or the Act on Contracts to Which a Local Government Is a Party, and is under the period of such restriction, he/she shall verify that the transferee has confirmed such fact, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Where a report on the transfer of construction business referred to in paragraph (1) is filed, the person who assumes charge of the construction business shall succeed to the status of the constructor who transfers the construction business, and where a report on a corporate merger is filed, the corporation surviving the merger or newly established in the course of such merger shall succeed to the status of the constructor of the disappearing corporation.
(4) Paragraphs (1) and (3) shall apply mutatis mutandis to succession of the construction business. In such cases, where the successor becomes disqualified as provided for in any subparagraph of Article 13 (1), he/she shall transfer the construction business to any third party within three months.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 18 (Public Announcements of Transfer of Construction Business)
Any person who intends to transfer his/her construction business under Article 17 (1) 1 shall give a public announcement thereof for at least 30 days, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 19 (Details, etc. of Transfer of Construction Business)
(1) Any person who intends to transfer his/her construction business pursuant to Article 17 (1) 1 shall completely transfer the following rights and duties concerning the category of business to be transferred:
1. Rights and duties concerning contract agreements of construction works under execution;
2. Rights and duties concerning repairs of defects of any completed works under a defect liability period.
(2) Where any construction works is under execution as provided in paragraph (1) 1, no construction business shall be transferred unless the project owner of such construction works agrees, or the contract therefor is terminated.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 20 (Restrictions on Transfer of Construction Business)
No constructor shall transfer his/her construction business in any of the following cases: Provided, That where he/she is obligated to transfer his/her construction business on the ground provided for in the latter part of Article 17 (4), he/she may transfer his/her construction business even in any of the following cases:
1. Where he/she is in the period of business suspension under Article 82, 82-2, or 83;
2. Where he/she is subject to cancellation of registration of his/her construction business pursuant to Article 82-2 or 83, and is under a period of suspended execution of the disposition under the Administrative Appeals Act or the Administrative Litigation Act.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 20-2 (Closure, etc. of Construction Business)
(1) Where any person who has filed for registration of the construction business pursuant to Article 9 intends to close his/her construction business, he/she shall submit a report to the Minister of Land, Infrastructure and Transport, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Where a report on the closure of business is submitted under paragraph (1), the Minister of Land, Infrastructure and Transport shall cancel the registration of the relevant construction business, and publicly announce such fact, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 21 (Prohibition of Lending, Assisting, etc. in Lending Construction Business Registration Certificates, etc.)
(1) No constructor shall permit any third person to contract or perform construction works by using his/her name or trade name, or shall lend his/her construction business registration certificate or construction business registration booklet to any third person.
(2) No person shall contract or perform construction works by borrowing the name or trade name of a constructor or borrow a construction business registration certificate or construction business registration booklet. <Newly Inserted by Act No. 14708, Mar. 21, 2017>
(3) No one shall assist in doing the acts prohibited under paragraph (1) and (2). <Amended by Act No. 14708, Mar. 21, 2017>
(4) No owner of a building shall allow any person to contract or perform construction works in conspiracy with a constructor who has violated paragraph (1) or a person who has violated paragraph (2). <Newly Inserted by Act No. 14708, Mar. 21, 2017>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 21-2 (Prohibition of Lending National Technical Qualification Certificates, etc.)
No constructor shall borrow or lend a national technical qualification certificate or career certificate of construction technology from or to any third person.
[This Article Newly Inserted by Act No. 9875, Dec. 29, 2009]
CHAPTER III CONTRACT OR SUBCONTRACT AGREEMENTS
 Article 22 (Principles of Contract Agreements of Construction Works)
(1) Parties to a contract for construction works (including subcontracts; hereinafter the same shall apply) shall conclude a fair contract by agreement and on an equal footing, and shall conscientiously perform the contract in good faith.
(2) In concluding a contract for construction works, parties to the contract shall clearly stipulate the contract price, period of works and other matters prescribed by Presidential Decree, and shall exchange duplicate of contracts signature or name and seal affixed thereon to the other party for preservation.
(3) In order for the parties to a contract to conclude a fair contract on an equal basis, the Minister of Land, Infrastructure and Transport shall encourage them to prepare and use a standard form of a contract on construction works and the entrustment of construction project management (in cases of a subcontract, including a standard form of a subcontract for construction works recommended by the Fair Trade Commission pursuant to the Fair Transactions in Subcontracting Act; hereinafter referred to as "standard form of contract"). <Newly Inserted by Act No. 12012, Aug. 6, 2013>
(4) A constructor shall enter matters regarding construction works in a construction work ledger, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(5) In any of the following cases where the terms of a contract are remarkably unfair to either party to the contract, only such part of the contract shall be deemed ineffective: <Newly Inserted by Act No. 12012, Aug. 6, 2013>
1. Where either party to the contract does not approve changes to the contract amount which occur due to design change or changes in economic conditions after the conclusion of the contract without good cause, or passes the burden on to the other party to the contract;
2. Where either party to the contract does not approve the change of the contract period due to changes in the scope of work after the conclusion of the contract without good cause, or passes the burden on to the other party to the contract;
3. Where either party to the contract passes responsibility for matters on to the other party to the contract, which cannot be expected as at the time of the conclusion of the contract in light of all the relevant conditions, such as a type of a contract for construction works and the scope of construction works;
4. When the scope of the contract has not been specifically stipulated or a dispute exists between the parties to the contract, where either party to the contract infringes on a legitimate interest of the other party to the contract by determining the scope of the contract at his/her discretion;
5. Where either party to the contract infringes on a legitimate interest of the other party to the contract by determining excessively reduced or increased liability for damages of a party to the contract due to breach of the contract;
6. Where either party to the contract excludes or limits the right of other party to the contract acknowledged by related Acts and subordinate statutes, such as the Civil Act, without good cause.
(6) A constructor shall notify a project owner of items mentioned in the construction work ledger under paragraph (4), as prescribed by Presidential Decree. <Amended by Act No. 14015, Feb. 3, 2016>
(7) Parties to a contract for construction works shall clearly state the amount the relevant constructor is obligated to pay with respect to such construction works, on the statement of the contract price for the relevant construction works (including the statement of subcontract price calculation; hereafter the same shall apply in this paragraph), as prescribed by Presidential Decree, such as insurance premiums collected under the Act on the Collection of Insurance Premiums, etc. for Employment Insurance and Industrial Accident Compensation Insurance, insurance premiums of the national pension under the National Pension Act, health insurance premiums under the National Health Insurance Act, and long-term care insurance premiums for the aged under the Act on Long-Term Care Insurance for Older Persons. In such cases, where the amount recorded on the statement of contract price calculation exceeds the insurance premiums actually paid, matters concerning adjustment thereof shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 22-2 (Guarantee, etc. of Payment of Contract Price)
(1) When a contractor guarantees the performance of a contract to a project owner where he/she is awarded a contract for construction works ordered by a person other than the State, a local government, or a public institution prescribed by Presidential Decree, the contractor may also request the project owner to guarantee or assure the payment of the contract price.
(2) When a project owner fails to comply with the request of a contractor for the guarantee or assurance of the payment of the contract price under paragraph (1), the contract may notify the project owner of the implementation thereof by stipulating a considerable period and suspend the performance of construction works. Where the project owner fails to guarantee or assure the payment of the contract price within the notified period, the contractor may terminate such contract for construction works.
(3) Where a contractor suspends construction works or terminates a contract for construction works pursuant to paragraph (2) because a project owner has failed to guarantee or assure the payment of the contract price, the project owner shall not claim damages that occur due to the suspension of construction works or the termination of the contract for construction works from the contractor.
[This Article Newly Inserted by Act No. 12012, Aug. 6, 2013]
 Article 22-3 (Assumption of Contracts)
(1) Where a project owner fails to issue a written contract agreement, in concluding a contract, which includes the matters referred to in Article 22 (2), the contractor may request him/her to confirm the contracted matters by notifying in writing the project owner of the matters prescribed by Presidential Decree, such as the details of the contracted construction works and contract price.
(2) A project owner shall send a written reply to the contractor on whether he/she accepts or denies the contents of the notification within 15 days from the date when he/she receives the notification under paragraph (1); and if no reply is sent within such period, it shall be assumed that there has been a contract with the same content as originally notified by the contractor: Provided, That the same shall not apply where any natural disaster or any other incident makes it impossible to reply.
(3) The contractor in the case of a notification under paragraph (1), and the project owner in the case of a reply under paragraph (2), shall sign or affix their names and seals, respectively.
(4) Paragraphs (1) through (3) shall apply mutatis mutandis to the assumption as a subcontract agreement. In such cases, "projet owner" shall be construed as "contractor", "contractor" as "subcontractor", and "contract" as "subcontract".
(5) Matters necessary in connection with a notification under paragraph (1) and a reply under paragraph (2) shall be prescribed by Presidential Decree.
(6) Each project owner, contractor, and subcontractor shall keep the written documents referred to in paragraphs (1) and (2) as prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 14015, Feb. 3, 2016]
 Article 23 (Appraisal and Public Announcement of Execution Capacity)
(1) Upon receipt of an application from a constructor, the Minister of Land, Infrastructure and Transport shall appraise and publicly announce the execution capacity of the constructor based on his/her performance records of construction works, capital, and standards for safety, environment, and quality control of construction works, to ensure that an project owner can select an appropriate constructor. <Amended by Act No. 10719, May 24, 2011; Act No. 11690, Mar. 23, 2013>
(2) Deleted. <by Act No. 5965, Apr. 15, 1999>
(3) A constructor who intends to receive appraisal of his/her execution capacity and make such appraisal publicly announced under paragraph (1) shall submit the performance records of construction works in the preceding year, the status of engineers affiliated, financial status, and other matters determined by Ordinance of the Ministry of Land, Infrastructure and Transport to the Minister of Land, Infrastructure and Transport, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 10719, May 24, 2011; Act No. 11690, Mar. 23, 2013>
(4) The methods of conducting appraisal of execution capacity, details of data to be submitted, and procedures for giving public announcements paragraphs (1) and (3) and other necessary matters shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 10719, May 24, 2011; Act No. 11690, Mar. 23, 2013>
 Article 23-2 (Appraisal and Public Announcement of Construction Management Capacity)
(1) Upon receipt of an application from a construction project manager, the Minister of Land, Infrastructure and Transport shall appraise and publicly announce the construction management capacity of the construction project manager based on the construction management performance and financial status of the construction project manager, to ensure that an project owner can select an appropriate construction project manager under Article 26 (2). <Amended by Act No. 11690, Mar. 23, 2013>
(2) Any construction project manager who intends to undergo appraisal and make such appraisal publicly announced under paragraph (1) shall submit his/her construction management performance in the preceding year, the status of affiliated human resources in construction management, financial status and other matters prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, to the Minister of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(3) The method of conducting appraising of construction management capacity, details of data to be submitted, and procedures for giving public announcements under paragraphs (1) and (2) and other necessary matters shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 24 (Comprehensive Management of Construction Industry Information)
(1) The Minister of Land, Infrastructure and Transport may comprehensively manage the information on constructors, such as capital, management status and construction progress of constructors, the actual demand for and supply of materials and human resources necessary for construction works, guarantees referred to in Article 56 (1) 1, administrative sanctions and other construction-related information, and provide such information to the related institutions, organizations, etc. requiring them. <Amended by Act No. 11690, Mar. 23, 2013>
(2) The Minister of Land, Infrastructure and Transport may comprehensively manage the information on construction project managers, such as capital, management status, and construction management performance, and construction management-related information, such as the actual demand for and supply of human resources necessary for construction management, and provide such information to the related institutions, organizations, etc. requiring them. <Amended by Act No. 11690, Mar. 23, 2013>
(3) The Minister of Land, Infrastructure and Transport may build up and operate a comprehensive management system of construction industry information to systematically manage such construction industry information provided for in paragraphs (1) and (2), as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013>
(4) The Minister of Land, Infrastructure and Transport may request constructors, construction project managers, producers or suppliers of construction materials, related administrative agencies, associations of construction-related business operators, and agencies that render or conduct research on construction-related mutual-aid, insurance, or guarantee services to provide data on situations of construction progress, production or sale situations of construction materials, current status of construction human resources, construction management performance, etc. for the comprehensive management of information provided for in paragraphs (1) and (2). In such cases, any person or entity in receipt of such request shall comply therewith except in extenuating circumstances. <Amended by Act No. 11690, Mar. 23, 2013>
(5) Procedures for requesting a provision of data under paragraph (4) and other necessary matters shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 25 (Restrictions on Qualification of Contractors, etc.)
(1) An project owner shall award a contract to a constructor who has obtained registration of the category of business corresponding to the details of the relevant works, considering the necessity of comprehensive planning, management, and coordination, characteristics of construction technology, site conditions, etc. of the construction works for which he/she intends to award the contract. <Amended by Act No. 14015, Feb. 3, 2016>
(2) A contractor shall award a subcontract to a constructor who has filed for registration of the category of business corresponding to the details of the relevant works.
(3) An project owner or contractor may restrict qualifications of contractors or subcontractors of construction works on the basis of the execution capacity, performance records of construction works, technical capacity, etc. announced publicly pursuant to Article 23 (1) in consideration of the characteristics of construction works.
(4) The head of a State agency or local government entitled to issue dispositions, such as authorization, permission or approval with respect to Class A structures and Class B structures under the Special Act on the Safety Control and Maintenance of Establishments may recommend that the relevant project owner replace a builder if he/she deems that the builder’s execution capacity is substantially inappropriate in consideration of the size of the relevant construction works and the necessity, etc. of structural safety. <Amended by Act No. 14545, Jan.17, 2017>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 26 (Performance, etc. of Affairs by Construction Project Managers)
(1) A project owner may wholly or partially entrust construction management affairs to a person who has expert knowledge and technical capacity about construction management.
(2) Where the details of construction management affairs performed by a person entrusted with the construction management affairs by the project owner (hereinafter referred to as "construction project manager") are affairs requiring a report, registration, etc. under this Act or the related Acts and subordinate statutes, none of such construction management affairs shall be performed unless the person entrusted therewith has filed a report or for registration under the related Acts and subordinate statutes: Provided, That where the construction project manager of airport, expressway, power plant, dam, or plant works which are large scale compound construction works, is equipped with technical human resources, such as architects or professional engineers capable of performing design or supervision affairs under related Acts and subordinate statutes, he/she may perform such works being entrusted with design and supervision affairs together, notwithstanding Article 23 (1) of the Certified Architects Act or Article 26 (1) of the Construction Technology Promotion Act. <Amended by Act No. 11794, May 22, 2013>
(3) A construction project manager shall perform the entrusted affairs in good faith for the relevant project owner.
(4) No construction project manager shall advise for himself or his/her affiliated company (referring to an affiliated company as defined in subparagraph 3 of Article 2 of the Monopoly Regulation and Fair Trade Act) to receive a contract for the relevant construction works.
(5) If a construction project manager inflicts any loss on property of the project owner intentionally or by gross negligence in the course of performing construction management affairs, he/she shall compensate for such loss.
(6) Article 44 shall apply mutatis mutandis to compensation for any loss by a construction project manager. In such cases, "constructor" shall be construed as "construction project manager."
(7) Paragraphs (1) through (6) shall also apply to construction management performed by a construction manager at-risk.
(8) Where a constructor who delivers CM at-risk concludes a contract with a project owner on construction management in the execution phase, the terms and conditions of the contract shall be limited to the construction works referred to in subparagraph 4 of Article 2.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 27 (Period for Estimate)
An project owner shall grant a certain period prescribed by Presidential Decree for constructors to make an estimate of the relevant construction works, before a contract for such works is concluded, if it is a free contract, and before inviting a tender, if such contract is concluded through a public tender.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 28 (Defect Liability by Contractors, etc. of Construction Works)
(1) A contractor shall be held liable to a project owner for any defects arising within a period prescribed by Presidential Decree by kind of works for up to the following applicable periods: <Amended by Act No. 13469, Aug. 11, 2015>
1. Ten years from the date of completion of construction works or from the date of the commencement of the management and use of the object, whichever is earlier, where the object of such construction works is in a brick masonry structure, reinforced concrete structure, steel structure, steel reinforced concrete structure or other similar structure;
2. Five years from the date of completion of construction works or from the date of the commencement of the management and use of the object, whichever is earlier, where the object of such construction works is in a structure, other than that referred to in subparagraph 1.
(2) Notwithstanding paragraph (1), no contractor shall be liable for any defects arising from any of the following:
1. Where the relevant defect arises as the quality, standard, etc. of any material supplied by the project owner fall short of the standards;
2. Where the relevant construction works are executed as instructed by the project owner;
3. Where the project owner uses the object of the relevant construction works in excess of the life of durability or designed structural durability under related Acts and subordinate statutes.
(3) Where a defect liability period for any construction works is expressly provided for in any other Act or subordinate statute (excluding Articles 670 and 671 of the Civil Act), it shall be governed by the relevant Act or subordinate statute: Provided, That where it is separately determined by the contract agreement in consideration of the performance, characteristics, etc. of the objects of construction works, as prescribed by Presidential Decree, it shall be governed by such contract agreement. <Amended by Act No. 13469, Aug. 11, 2015>
(4) Paragraphs (1) through (3) shall apply mutatis mutandis to defect liability of subcontractors. In such cases, a "contractor" shall be construed as a "subcontractor", a "project owner" as a "contractor", and "from the date of the completion of construction works or from the date of the commencement of the management and use of the object, whichever is earlier" as "from the date of the completion of construction works executed by the subcontractor or from the date of the commencement of the management and use of the object, whichever is earlier". <Newly Inserted by Act No. 12580, May 14, 2014; Act No. 13469, Aug. 11, 2015>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 28-2 (Direct Performance of Construction Works)
(1) A constructor shall directly perform a portion of works equivalent to the amount computed in the ratio prescribed by Presidential Decree among the relevant amount of works if he/she is awarded a contract of construction works not exceeding the amount prescribed by Presidential Decree, which are less than ten billion won per case of works: Provided, That he/she may not need to perform such works directly in cases prescribed by Presidential Decree where it is impracticable for him/her to do so.
(2) A person who directly performs a portion of construction works under paragraph (1) shall notify the project owner of his/her direct performance plan, as prescribed by Presidential Decree: Provided, That the same shall not apply where a constructor who has obtained registration of a category of business for execution of specialized construction works is awarded a contract for specialized construction works. <Amended by Act No. 14015, Feb. 3, 2016>
(3) An project owner may terminate the contract for the relevant construction works if the relevant constructor fails to notify him/her of the plans for direct performance under paragraph (2) or fails to perform such construction works in compliance with the direct performance plan.
(4) The project owner of construction works ordered by the State, a local government or a public institution prescribed by Presidential Decree in receipt of a direct performance plan under paragraph (2), shall verify whether the constructor has complied with the requirements for direct performance of construction works pursuant to the main sentence of paragraph (1) and report or notify the result thereof to the Minister of Land, Infrastructure and Transport: Provided, That in cases of construction works that require supervision under any related statutes, the person who conducts the supervision may be allowed to verify the compliance. <Newly Inserted by Act No. 14708, Mar. 21, 2017>
(5) Methods and procedures for verifying whether the requirements for direct performance of construction works have been complied with pursuant to paragraph (4) and other necessary matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted by Act No. 14708, Mar. 21, 2017>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 29 (Restrictions on Subcontract of Construction Works)
(1) No constructor shall subcontract all of the construction works contracted to him/her or most of the major portions prescribed by Presidential Decree of such construction works to any third constructor: Provided, That the same shall not apply where the constructor plans, manages, and coordinates any construction works contracted to him/her, as prescribed by Presidential Decree, and subcontracts to at least two persons by splitting such construction works, as prescribed by Presidential Decree.
(2) No contractor shall subcontract a portion of any construction works contracted to him/her to any third constructor registered for the business of performing such construction works: Provided, That the same shall not apply where the project owner gives his/her consent in writing by deeming that it is necessary to enhance the quality of works or the efficiency for its execution.
(3) No subcontractor shall further subcontract any construction works he/she has subcontracted to any third person: Provided, That he/she may do so in any of the following cases: <Amended by Act No. 11690, Mar. 23, 2013>
1. Where a constructor registered for the business of performing general construction works has been awarded a subcontract under the proviso to paragraph (2), and further subcontracts any construction works constituting specialized construction works among any construction works he/she has subcontracted to any third constructor registered for the business of performing the relevant specialized construction works;
2. Where a constructor registered for the business of performing specialized construction works has been awarded a subcontract, and further subcontracts a portion of any specialized construction works he/she subcontracted to any third constructor registered for the business of performing the relevant specialized construction works, meeting all the following requirements:
(a) He/she shall meet the requirements prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport as necessary for improving the quality of the construction works or the efficiency of its execution;
(b) He/she shall obtain written consent from the contractor.
(4) A constructor who has subcontracted a portion of any construction works he/she has contracted (including further subcontract under the proviso to paragraph (3)) and a person who has given consent to further subcontract under paragraph (3) 2 shall notify the project owner thereof, as prescribed by Presidential Decree: Provided, That the same shall not apply to any of the following cases: <Amended by Act No. 11466, Jun. 1, 2012>
1. Where the project owner gives written consent under the proviso to paragraph (2);
2. Where the portion to be subcontracted is the major portion of the construction works for which a subcontract is subject to prior approval from the project owner by contract agreement for quality control.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 29-2 (Supervision over Subcontract of Construction Works)
(1) Where a contractor subcontracts any construction works he/she has contracted, he/she shall supervise subcontractors so that they comply with Article 29 (3).
(2) Where a subcontractor enters into a contract, in violation of Article 29 (3), the relevant contractor may request that the subcontractor modify the terms and conditions of such contract or terminate such contract, specifying the ground therefor.
(3) Where a subcontractor fails to comply with a request made under paragraph (2) without good cause, the relevant contractor may terminate the subcontract for the relevant construction works.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 30 Deleted. <by Act No. 7306, Dec. 31, 2004>
 Article 31 (Inspections, etc. of Propriety of Subcontracts)
(1) Where deeming that a subcontractor is deemed substantially inappropriate for performing construction works, or the subcontract price does not exceed the price computed in the ratio prescribed by Presidential Decree, an project owner may inspect the execution capacity of the subcontractor, and the propriety of the terms and conditions of the relevant subcontract, etc.
(2) Where deeming that a subcontractor is deemed substantially inappropriate for performing construction works, or the subcontract price falls short of the price computed in the ratio prescribed by Presidential Decree, the State, a local government, or a public institution prescribed by Presidential Decree, as an project owner, shall inspect the execution capacity of the subcontractor, and the propriety of the terms and conditions of the relevant subcontract, etc.
(3) Where an inspection conducted under paragraph (1) or (2) reveals that the execution capacity of a subcontractor or the terms and condition of a subcontract are inappropriate, an project owner may request the relevant contractor to change the subcontractor or to modify the terms and conditions of the subcontract, specifying the ground therefor. In such cases, where an inspection is conducted under paragraph (2), the relevant project owner shall request a contractor to change the subcontractor or the terms and conditions of the subcontract.
(4) Where a contractor’s failure to comply with a request made under paragraph (3) without good cause is likely to seriously affect the result of works, the relevant project owner may terminate the contract for the relevant construction works.
(5) The project owner referred to in paragraph (2) shall establish a subcontract inspection committee to inspect the execution capacity of subcontractors, the propriety of the terms and conditions of subcontracts, etc.
(6) The criteria for inspection of the propriety of subcontracts, procedures for requesting the change of subcontractors or modification of terms and conditions of subcontracts under paragraphs (1) through (3), other necessary matters, and matters necessary for the establishment and composition of subcontract inspection committees referred to in paragraph (5), the methods of conducting inspections, etc. shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 31-2 (Submission of Subcontract Plans)
(1) Where a constructor intends to be awarded a contract for any construction works prescribed by Presidential Decree and ordered by the State, a local government, or a public institution prescribed Presidential Decree, he/she shall submit to the project owner a subcontract plan that includes the main types and volume of the construction works to be subcontracted and the method of selecting subcontractors, as prescribed by Presidential Decree in order to ensure the fairness of subcontracting and efficient performance of the construction works. In such cases, the project owner shall examine whether the subcontract plan submitted is appropriate and supervise whether the construction works are performed in accordance with the subcontract plan. <Amended by Act No. 14015, Feb. 3, 2016>
(2) Where the project owner requests a constructor to submit a subcontract plan for any construction works to which paragraph (1) is not applied by deeming that it is necessary to ensure the fairness of subcontracting and the efficiency of the construction works, the constructor shall comply with such request.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 31-3 (Disclosure of Data on Contracts of Subcontract Work)
Where a person has subcontracted construction works ordered by the State, a local government, or a public institution prescribed by Presidential Decree, the relevant project owner shall disclose the following matters in a way that any person can see, as prescribed by Presidential Decree:
1. Name of construction works;
2. Contract price of a contractor and bid price rate;
3. Contractor (firm name, representative and the seat of its place of business);
4. Subcontractor (firm name, representative, type of business and the seat of its place of business);
5. Type of construction subcontracted;
6. Contract price on the part of a subcontract, subcontract price and subcontract rate.
[This Article Newly Inserted by Act No. 12580, May 14, 2014]
 Article 32 (Status of Subcontractors, etc.)
(1) Each subcontractor shall have the same obligation to the project owner as that of a contractor with respect to any construction works he/she has subcontracted.
(2) Paragraph (1) shall not affect the legal relations between a contractor and a subcontractor.
(3) Where a constructor neglects to give a notice under Article 29 (4) or gives a notice upon omitting any part of it, a subcontractor may directly notify the project owner or the contractor of the types, period, etc. of works performed by him/her.
(4) Articles 34 (1) and 35 (excluding Article 35 (2) 6 to a construction machinery rental operator and Article 35 (2) 5 and 6 to a person who manufactures and supplies component materials) shall apply mutatis mutandis to the payment of prices to a construction machinery rental operator and a person who manufactures and supplies component materials for construction works, as stipulated by Ordinance of the Ministry of Land, Infrastructure and Transport (hereafter referred to as "person manufacturing and supplying component materials" in this paragraph). In such cases, "project owner" shall be construed as "project owner or contractor," "contractor" as "contractor or subcontractor," "subcontractor" as "construction machinery rental operator or person manufacturing and supplying component materials," and "subcontract prices" as "construction machinery rental fees or prices for component materials for construction works", respectively: Provided, That in any case described in Article 35 (2), (3), (5), and (6), "project owner" shall be deemed "person who has awarded a contract for construction works to the constructor entering into a contract with a construction machinery rental operator or a person manufacturing and supplying component materials," "contractor" shall be construed as "constructor entering into a contract with a construction machinery rental operator or a person manufacturing and supplying component materials," "subcontractor" as "construction machinery rental operator or a person manufacturing and supplying component materials," and "subcontract prices" as "construction machinery rental fees or prices for component materials for construction works.", respectively. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12580, May 14, 2014>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 33 (Hearing the Opinions of Subcontractors)
Where a contractor has subcontractors in performing any construction works he/she has contracted, he/she shall hear opinions from such subcontractors in advance about the construction methods and process of the performance of the construction works and other matters deemed necessary.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 34 (Payment of Subcontract Prices, etc.)
(1) Where a contractor receives completion money or progress payment for any construction works he/she has contracted, he/she shall make payment to a subcontractor in cash within 15 days from the date when he/she receives the completion money or progress payment (referring to the due date of draft where the contractor receives the value of works by draft from the project owner), respectively, in accordance with the following classifications:
1. Where he/she receives completion money: Subcontract price;
2. Where he/she receives a progress payment: Amount equivalent to the portion executed by the subcontractor.
(2) In concluding a contract agreement, a contractor shall issue a guarantee which certifies the payment of an appropriate subcontract price to the relevant subcontractor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That the contractor need not issue such guarantee in cases determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Parties to a contract for construction works shall clarify the amount incurred in issuing a payment guarantee of the subcontract price under paragraph (2) on the statement of the contract price calculation of the relevant construction works, as prescribed by Presidential Decree.
(4) Where a contractor receives an advance payment from an project owner, the contractor shall pay an advance payment to his/her subcontractors according to the details and proportion of the advance payment he/she receives within 15 days from the date of receipt (referring to the date a subcontract agreement is concluded where the contractor receives the advance payment before signing the subcontract agreement) to ensure that such subcontractors may commence the subcontracted works, such as purchasing materials and recruiting field workers. In such cases, the contractor may request a subcontractor to provide a guarantee in preparation for a case that the subcontractor may return the advance payment. <Amended by Act No. 11466, Jun. 1, 2012>
(5) A mutual aid association established under Article 54 or any agency authorized to perform guarantee affairs under other Acts and subordinate statutes shall issue a guarantee agreement (including the issuance of a modified guarantee) referred to in paragraph (2) that certifies the payment of the subcontract price to a contractor, or terminates a guarantee agreement, it shall promptly notify a project owner and a contractor of details thereof, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12580, May 14, 2014>
(6) A project owner shall confirm the terms and conditions of the payment guarantee of the subcontract price notified under paragraph (5), and where such confirmation finds that any of the terms and conditions are inappropriate, the project owner may request the contractor to correct them.
(7) Where a project owner is the State, a local government, or a public institution prescribed by Presidential Decree, he/she shall confirm whether such contractor has issued a guarantee under paragraph (2) to the subcontractor, so as to protect the subcontract price. <Newly Inserted by Act No. 14015, Feb. 3, 2016>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 34-2 (Performance Bond, etc. for Subcontract Agreement)
(1) In issuing a payment guarantee of the subcontract price under Article 34 (2), a contractor may request a subcontractor to issue a performance bond for the subcontract agreement in the amount equivalent to 10/100 of the subcontract price, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(2) Where a contractor revokes or terminates a subcontract agreement unilaterally for any of the following reasons, the contractor shall not be able to request the institution that has issued a performance bond for the subcontract agreement under paragraph (1) to pay the amount of payment bond for the subcontract agreement: Provided, That the cases for which the subcontractor is liable shall be excluded herefrom:
1. Where the period of works is delayed, because the contractor has failed to pay the subcontract price within the deadline determined by the contract agreement or prescribed by related Act or subordinate statute;
2. Where the nonfulfillment of subcontract agreement has occurred due to the delay in reaching agreement on the settlement of additional or modified works, etc. ordered under Article 36-2 (1).
[This Article Newly Inserted by Act No. 13469, Aug. 11, 2015]
 Article 35 (Direct Payment of Subcontract Prices)
(1) In any of the following cases, a project owner may make a direct payment of the subcontract price to a subcontractor for the portion of works performed by a subcontractor. In such cases, the obligation of the project owner to pay the price to the contractor shall be deemed terminated within the limits of his/her payment to the subcontractor: <Amended by Act No. 11690, Mar. 23, 2013>
1. Where the construction works ordered by the State, a local government, or a public institution prescribed by Presidential Decree falls under any of the following cases and the project owner deems it necessary for the protection of the subcontractor:
(a) Where the contractor delays the payment of the subcontract price referred to in Article 34 (1) at least once;
(b) Where a contract agreement is concluded at the amount which falls short of the ratio determined by Ordinance of the Ministry of Land, Infrastructure and Transport in comparison with the estimated construction work cost;
2. Where a project owner deems that there exists an obvious ground, such as the contractor's bankruptcy, on which the contractor is unable to pay the subcontract price;
3. Deleted. <by Act No. 11576, Dec. 18, 2012>
(2) In any of the following cases, a project owner shall make a direct payment of the subcontract price to the subcontractor for the portion of works performed by a subcontractor: <Amended by Act No. 11576, Dec. 18, 2012; Act No. 12580, May 14, 2014>
1. Where the project owner and the contractor or the project owner, the contractor, and the subcontractor have reached an agreement by specifying their intentions that the project owner pays the subcontract price directly to the subcontractor and the methods of and procedures for making such direct payments;
2. Where a final decision is rendered to order the payment of the subcontract price for the portion of works performed by the subcontractor;
3. Where the contractor delays the payment of the subcontract price referred to in Article 34 (1) on at least two occasions and the subcontractor requests a direct payment of the subcontract price to the project owner;
4. Where the contractor becomes unable to pay the subcontract price on account of the contractor's default, bankruptcy or others or the cancellation of the contractor's registration and the subcontractor requests a direct payment of the subcontract price to the project owner;
5. Where the contractor fails to issue a guarantee which certifies the payment of the subcontract price under Article 34 (2) to the subcontractor without good cause and the project owner becomes aware of such fact or the subcontractor requests a direct payment of the subcontract price to the project owner;
6. Where the contractor enters into a contract for construction works ordered by the State, a local government or a public institution prescribed by Presidential Decree at the price below the rate prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport compared with the estimated price of construction works, and the subcontractor requests the project owner to directly pay the subcontract price.
(3) Where any ground falling under any subparagraph of paragraph (2) arises and a project owner directly pays the subcontractor the subcontract price, the obligation of the project owner to pay the contract price to a contractor and the obligation of the contractor to pay the subcontract price to the subcontractor shall be deemed terminated to the extent that the project owner or the contractor pays within the limits of the payment to the contractor or subcontractor.
(4) In any case falling under any item of paragraph (1) 1, where it is deemed that a contractor is likely to sustain a loss due to causes attributable to a subcontractor, a contractor may request a project owner to suspend a direct payment of the subcontract price by specifying the ground therefor.
(5) Where a project owner receives a request to suspend a direct payment of the subcontract price to a subcontractor, accompanied by the documents substantiating that such subcontractor delays in payment of wages, materials costs, etc. for the subcontract, the project owner may choose not to pay the subcontract price directly to the subcontractor, notwithstanding paragraph (2).
(6) Where it is necessary to confirm the portion of works performed by a subcontractor in order for the subcontractor to receive a direct payment of the subcontract price from a project owner in accordance with paragraph (1) or (2), a contractor shall take necessary measures without delay.
(7) Where the subcontract price is directly paid pursuant to any of the subparagraphs of paragraph (1) or paragraph (2) 3 or 4, the method of and procedures for payment shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 36 (Adjustment, etc. of Subcontract Prices Following Design Changes)
(1) Where a contractor receives an increase in the construction amount from an project owner due to a design change or fluctuation in economic conditions after subcontract, he/she shall make an increased payment according to the details and proportion of the increases in construction amount he/she receives if additional costs are required for the completion of an object for the same causes. If the constructor receives a decrease in the construction amount, he/she shall make a decreased payment in proportion thereto.
(2) Where the amount of an ordered construction works has been paid to a contractor as adjusted under a design change or fluctuation in economic conditions, an project owner shall notify a subcontractor (including any person awarded a subcontract by the subcontractor under Article 29 (3)) of the ground for and details of an adjustment of such amount, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 36-2 (Written Confirmation, etc. on Additional or Modified Works)
(1) Where a contractor requests a subcontractor to perform the works not originally included in the statement of the subcontract quotation (hereinafter referred to as "additional or modified works") due to design change or other reasons, he/she shall request in writing the matters necessary in connection with the additional or modified works, such as the details, amount and period of the additional or modified works, from the subcontractor of the relevant works. In such cases, the contractor may obtain written confirmation from the project owner, if necessary.
(2) Matters necessary for the written request, project owner's confirmation, etc. under paragraph (1) shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 13469, Aug. 11, 2015]
 Article 37 (Inspections and Delivery)
(1) Where a contractor is notified of a completed or accomplished portion of subcontracted works by a subcontractor, he/she shall conduct an inspection to confirm such fact. In such cases, the contractor shall notify the subcontractor in writing of findings from the inspection within ten days after receipt of such notification. <Amended by Act No. 11466, Jun. 1, 2012>
(2) Where subcontracted works are completed as designed as a result of an inspection conducted under paragraph (1), a contractor shall accept such subcontracted works without delay.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 38 (Prohibition against Unfair Practices)
(1) No contractor shall force a subcontractor to follow any unfair practice deemed unfavorable to the subcontractor, such as designating material suppliers in connection with the performance of subcontracted works.
(2) No contractor shall require a subcontractor to enter into an agreement that contains any special stipulations unfairly restricting the contractual interests of the subcontractor in violation of Article 22, 28, 34, 36 (1), 36-2 (1), or 44, or other related Acts and subordinate statutes. The types of unfair special agreements shall be prescribed by Presidential Decree. <Amended by Act No. 11466, Jun. 1, 2012; Act No. 13469, Aug. 11, 2015>
(3) Where unfair special stipulations under paragraph (2) are included in a subcontract, etc. on which a subcontractor receives notification pursuant to Article 29 (4) when a project owner is the State, a local government, or a public institution prescribed by Presidential Decree, the subcontractor shall request the contractor to revise the subcontract, etc. by clearly specifying reasons for the revision thereof, and notify a government office with which the relevant constructor has registered of such fact. <Newly Inserted by Act No. 12580, May 14, 2014>
[This Article Wholly Amended by Act No. 9875, Dec. 29, 2009]
 Article 38-2 (Prohibition of Acquisition or Provision of Economic Benefits, etc. by Unlawful Requests)
(1) No project owner, contractor, subcontractor (including an executive officer or employee of the relevant corporation, when the project owner, contractor, or subcontractor is a corporation), or interested person shall acquire or provide economic benefits or assets in exchange for an unlawful request in connection with the conclusion of a contract agreement or the performance of construction works. <Amended by Act No. 14015, Feb. 3, 2016>
(2) No one who participates as an examiner in a tender for construction works ordered by the State, a local government, or a public institution prescribed by Presidential Decree shall acquire economic benefits or assets in exchange for an unlawful request in connection with his/her duties.
(3) A corporation or the representative, a commercial employee, or any other executive or employee thereof who participates in a tender for construction works ordered by the State, a local government, or a public institution prescribed by Presidential Decree shall not acquire or provide economic benefits or assets in exchange for an unlawful request in connection with his/her duties.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 38-3 (Prohibition of Retaliatory Actions)
(1) No project owner shall limit contract opportunities or suspend transactions against a contractor, or conduct any other acts that disadvantages the contractor (hereafter referred to as "acts to disadvantage, etc." in this Article) on the ground that the contractor has conducted any of the following acts:
1. Filing a report with a related institution, etc. on the violation of this Act by the project owner;
2. Filing an application for conciliation with the Construction Dispute Conciliation Committee under Article 69.
(2) Paragraph (1) shall apply mutatis mutandis to acts to disadvantage, etc., conducted by a contractor against a subcontractor and by a constructor against a construction machinery rental operator. In such cases, "project owner" shall be construed as "contractor or constructor", and "contractor" as "subcontractor or construction machinery rental operator".
[This Article Newly Inserted by Act No. 14015, Feb. 3, 2016]
CHAPTER IV EXECUTION AND TECHNICAL MANAGEMENT
 Article 39 Deleted. <by Act No. 5965, Apr. 15, 1999>
 Article 40 (Assignment of Construction Engineers)
(1) A constructor shall assign at least one construction engineer to a construction site for the execution management of construction works and other technical management, as prescribed by Presidential Decree: Provided, That the constructor need not assign any construction engineer where the relevant project owner gives a written consent in circumstances meeting requirements prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, such as discontinuance of construction works of the relevant type for a certain period, where no impediment is caused to the execution management, quality and safety of the construction works. <Amended by Act No. 11690, Mar. 23, 2013>
(2) No construction engineer assigned to a construction site pursuant to paragraph (1) shall desert the construction site without good cause, unless he/she obtains consent from the project owner.
(3) Where an project owner deems that a construction engineer assigned to a construction site pursuant to paragraph (1) has no capacity to carry out his/her duties due to physical weakness, etc., the project owner may request the contractor to replace the construction engineer. In such cases, the contractor shall comply therewith unless any good cause exists to the contrary.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 41 (Restrictions on Executors of Construction Works)
(1) Construction works (excluding minor construction works referred to in the proviso to Article 9 (1); hereafter the same shall apply in this Article) or renovation of any of the following buildings shall be performed by constructors: Provided, That construction works other than the following and construction works of buildings prescribed by Presidential Decree, including structures for agricultural or livestock purposes, shall be directly built by the owner of such building or contracted out to a constructor: <Amended by Act No. 11015, Aug. 4, 2011; Act No. 14015, Feb. 3, 2016>
1. Residential buildings, the total floor area of which exceeds 661 square meters;
2. Any of the following residential buildings, the total floor area of which is not more than 661 square meters:
(a) A multi-unit house as defined in the Building Act;
(b) A detached house as defined in the Building Act and prescribed by Presidential Decree;
3. Non-residential buildings, the total floor area of which exceeds 495 square meters;
4. Buildings prescribed by Presidential Decree, such as schools and hospitals, among public-use buildings which are non-residential buildings, the total floor area of which is not more than 495 square meters.
(2) Construction works for establishing any of the following new public-use facilities shall be performed by constructors:
1. Facilities prescribed by Presidential Decree among sports facilities under the Installation and Utilization of Sports Facilities Act;
2. Urban parks under the Act on Urban Parks, Green Areas, Etc. or park facilities prescribed by Presidential Decree which are to be established within urban parks;
3. Park facilities prescribed by Presidential Decree which are to be established within natural parks under the Natural Parks Act;
4. Facilities prescribed by Presidential Decree among entertainment facilities under the Tourism Promotion Act.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 42 (Posting Construction Signs)
(1) A constructor shall display a sign that indicates the name of construction works, the project owner, the builder, the work period, etc. at a place readily viewable by people in the vicinity of every construction site, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(2) When a constructor has completed construction works determined by Ordinance of the Ministry of Land, Infrastructure and Transport, he/she shall permanently install a signboard that indicates the project owner of the completed construction works, the designer, the supervisor, and the title of constructor who has performed such works, representative's name, etc. at a place readily viewable by people, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That in cases of building works, seismic performance categories under Article 48-2 of the Building Act and seismic capacity under Article 48-3 of the same Act shall be included in the signboard. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14708, Mar. 21, 2017>
(3) An project owner shall appropriate expenses for displaying signs and for installing signboards under paragraphs (1) and (2) in the relevant construction costs.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 43 Deleted. <by Act No. 5965, Apr. 15, 1999>
 Article 44 (Constructors’ Liability for Damages)
(1) Where a constructor inflicts any loss or damage to any third person by unconscientiously performing construction works, either intentionally or by negligence, he/she shall be held liable for such loss or damage.
(2) Where any loss or damage referred to in paragraph (1) arises from gross negligence of an project owner, a constructor may exercise a right to indemnity against the project owner.
(3) Where a subcontractor inflicts any loss or damage to any third person by unconscientiously performing subcontracted construction works, either intentionally or by negligence, a contractor shall be held liable for such loss or damage jointly and severally with the subcontractor.
(4) Where a contractor compensates for any loss or damage pursuant to paragraph (3), he/she may exercise a right to indemnity against the subcontractor held liable for such loss or damage.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
CHAPTER V RATIONALIZATION OF MANAGEMENT AND ASSISTANCE TO SMALL OR MEDIUM CONSTRUCTORS
 Article 45 (Endeavor to Rationalize Management, etc.)
A constructor shall endeavor to rationalize management of his/her business, such as the establishment of orderly contract practices, proper performance of construction works, and sound financial management and to develop construction technologies.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 46 (Assistance to Small or Medium Constructors)
(1) The Minister of Land, Infrastructure and Transport may establish and implement assistance policies for small or medium constructors in consultations with the heads of related central administrative agencies. <Amended by Act No. 11690, Mar. 23, 2013>
(2) The heads of related administrative agencies and public institutions prescribed by Presidential Decree shall fully cooperate in the implementation of assistance policies for small or medium constructors referred to in paragraph (1).
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 47 (Measures for Assistance to Small or Medium Constructors)
(1) Where it is necessary to assist small or medium constructors, the Minister of Land, Infrastructure and Transport may request any State agency, local government, or public institution prescribed by Presidential Decree that orders construction works to expand the opportunity of small or medium constructors to participate therein and to take other necessary measures. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Where it is deemed necessary to assist small or medium constructors, the Minister of Land, Infrastructure and Transport may set the minimum limits of the construction cost for which a constructor that is a large enterprise may be awarded a contract, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 48 (Mutually-Beneficial Cooperation between Constructors)
(1) The Minister of Land, Infrastructure and Transport may provide guidance on subcontracts, joint contracts, etc. to maintain and develop mutually-beneficial cooperative relations between constructors registered for the business category of performing general construction works and constructors registered for the business category of performing specialized construction works, and mutually-beneficial cooperative relations between constructors who are large enterprises and constructors who are small or medium constructors, for the balanced development of construction business and the efficient performance of construction works. <Amended by Act No. 11690, Mar. 23, 2013>
(2) The Minister of Land, Infrastructure and Transport may guide any constructor registered for the business category of performing general construction works to register, as a cooperator, a constructor registered for the business category of performing construction works related to the works to be performed, in order to maintain mutually-beneficial cooperative relations between constructors. <Amended by Act No. 11690, Mar. 23, 2013>
(3) A constructor who has obtained registration and a cooperator who has filed for registration pursuant to paragraph (2) shall maintain mutually-beneficial cooperation with respect to the following:
1. Preferential selection of cooperators as joint contractors or subcontractors where they are awarded a contract or subcontract for construction works;
2. Exchanges of technology and information on construction works;
3. Assistance in terms of human resources, funds, or technical development necessary for performing construction works.
(4) The Minister of Land, Infrastructure and Transport may request any related agency to cooperate in giving preferential treatment to an exemplary constructor registered for the business category of performing general construction works at the time of appraising the execution capacity or ordering construction works, by appraising the records of provision of guidance referred to in paragraphs (1) and (2) or the cooperative relations with cooperators. <Amended by Act No. 11690, Mar. 23, 2013>
(5) Matters necessary for guidance referred to in paragraph (1), and registration of cooperators, and cooperation between constructors referred to in paragraph (2) shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 49 (Investigation, etc. into Actual Conditions of Constructors)
(1) Where it is deemed necessary to determine whether it meets the standards for registration, subcontracts are proper, and constructors conscientiously perform construction works, the Minister of Land, Infrastructure and Transport or the head of a local government (limited to any case necessary to deal with the business affairs entrusted under Article 91 (1); hereafter the same shall apply in this Article) may require constructors to report on their affairs, financial management status and situations, etc., of execution within a specified period, and require public officials under his/her jurisdiction to investigate the management status of constructors or to inspect materials or facilities necessary for performing works, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013>
(2) The Minister of Land, Infrastructure and Transport or the head of a local government may require a certified public accountant, tax accountant, or specialized management diagnosing institution meeting requirements determined by Ordinance of the Ministry of Land, Infrastructure and Transport to diagnose the financial management status of constructors if necessary in any of the following cases: <Amended by Act No. 11181, Jan. 17, 2012; Act No. 11466, Jun. 1, 2012; Act No. 11690, Mar. 23, 2013>
1. To investigate the management status of constructors as referred to in paragraph (1);
2. To confirm whether a constructor or a person who intends to file for registration of construction business under Article 9 meets the standards for registration of construction business.
(3) Where the Minister of Land, Infrastructure and Transport or the head of a local government deems it necessary in order to investigate the management status of constructors pursuant to paragraph (1), he/she may request project owners of construction works, construction technology service providers under subparagraph 9 of Article 2 of the Construction Technology Promotion Act, and other construction works-related institutions (hereafter referred to as "construction works-related institutions, etc." in this Article) to submit data on the execution status of construction works. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 11794, May 22, 2013; Act No. 14015, Feb. 3, 2016>
(4) Where the Minister of Land, Infrastructure and Transport or the head of a local government intends to conduct an investigation under paragraph (1), he/she shall notify a person to be investigated of the relevant investigation plan which includes the date, reasons, and details of such investigation, by seven days prior to the investigation: Provided, That he/she may choose not to give prior a notice where an urgency occurs or it is deemed that giving a prior notice can defeat the purpose of the investigation due to the destruction of evidence, etc. <Amended by Act No. 11690, Mar. 23, 2013>
(5) Any public official who conducts an investigation or inspection pursuant to paragraph (1) shall carry a certificate indicating his/her authority and produce it to related persons and shall provide, on entrance to and exit from the places related to the investigation, to the related person a document stating the name, time of entrance and exit, purpose, etc.
(6) The Minister of Land, Infrastructure and Transport may order the head of a local government to take measures, such as an investigation of actual conditions, etc. under paragraphs (1) through (3), and to file a report on the results of such measures. <Amended by Act No. 11690, Mar. 23, 2013>
(7) Notwithstanding paragraphs (1) and (6), the Minister of Land, Infrastructure and Transport shall investigate the management status of constructors or request the heads of local governments to conduct the investigation and report the results thereof, at least once a year, as prescribed by Presidential Decree. <Newly Inserted by Act No. 14015, Feb. 3, 2016>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
CHAPTER VI ORGANIZATION OF CONSTRUCTORS
 Article 50 (Establishment of Associations)
(1) Constructors may establish a constructors' association (hereinafter referred to as "Association") for the maintenance of the dignity of constructors, development of construction technologies, and sound development of construction business.
(2) Each Association shall be a corporation.
(3) Each Association shall be duly formed when the registration for its establishment is completed at the registry office having jurisdiction over its principal place of business.
(4) Qualifications of members and executives of associations and other matters shall be determined by the articles of association.
(5) Matters to be entered in the articles of association and matters necessary for the supervision of Associations shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 51 (Procedures for Authorization on Establishment of Associations)
(1) To establish an Association, it shall be promoted by at least five constructors who have membership, obtain consent of at least the number of constructors prescribed by Presidential Decree from constructors who have membership, formulate the articles of association at an inaugural general meeting, and file an application for authorization with the Minister of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(2) When the Minister of Land, Infrastructure and Transport grants authorization of an application filed under paragraph (1), he/she shall announce it publicly. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Necessary affairs until an Association is duly formed and its executives are appointed shall be carried out by promoters.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 52 (Recommendation, Consultation, etc.)
(1) Each Association may recommend matters on construction business to the Government, and shall advise the Government on construction business.
(2) Where each Association finds that any member or constructor who has membership violates this Act, it shall verify the details thereof and report it to the Minister of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 53 (Application Mutatis Mutandis of the Civil Act)
Except as otherwise expressly provided for in this Act, the provisions on corporations under the Civil Act shall apply mutatis mutandis to Associations.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
CHAPTER VII CONSTRUCTION-RELATED MUTUAL-AID ASSOCIATIONS AND CONSTRUCTION GUARANTEES
 Article 54 (Establishment of Mutual-Aid Associations)
(1) Constructors may establish a mutual-aid association to engage in autonomous economic activities, and provide various guarantees, funds loans, etc. necessary to run construction businesses through mutual cooperative organizations between constructors.
(2) Each mutual-aid association referred to in paragraph (1) shall be a corporation.
(3) Each mutual-aid association shall be duly formed when the registration for its establishment is completed at the registry office having jurisdiction over its principal place of business.
(4) Qualification of members of each mutual-aid association, matters concerning executives, contribution and loans, and the operation thereof shall be determined by the articles of association.
(5) Matters to be entered in the articles of association, subject matter of guarantees and guarantee limits shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 54-2 (Transfer, etc. of Start-up Expenses and Investment Money Resulted from Establishment of Separated Mutual-Aid Association)
(1) Where a mutual-aid association is established separately from an existing mutual-aid association (hereafter referred to as "separated mutual-aid association" in this Article), the promoters may cover expenses required for the establishment of the separated mutual-aid association by borrowing it from the existing mutual-aid association with approval from the Minister of Land, Infrastructure and Transport and the existing mutual-aid association which has received an application for loan may lend it notwithstanding the provisions of its articles of association concerning the operation of the funds.
(2) Where the Minister of Land, Infrastructure and Transport authorizes the establishment of a separated mutual-aid association under Article 55 (2) and the existing mutual-aid association consents to the transfer of investment money, the investment money paid to the existing mutual-aid association by the persons who have filed an application to join the membership of the relevant separated mutual-aid association, shall be construed as the investment money of the separated mutual-aid association that has been newly established. In such cases, matters necessary for the calculation standards, methods of the transfer, etc. shall be determined by the Minister of Land, Infrastructure and Transport.
(3) The existing mutual-aid association shall reduce its capital simultaneously with the transfer of the investment money conducted under paragraph (2). In such cases, the existing mutual-aid association needs not to take any separate procedures for capital reduction.
(4) When a separated mutual-aid association receives the investment money of those who will become the members of the relevant separated mutual-aid association from the existing mutual-aid association, it shall issue and deliver investment certificates without delay, as prescribed by the Minister of Land, Infrastructure and Transport.
(5) Rights and obligations held by an existing mutual-aid association in relationship with persons who become members of the separated mutual-aid association shall be succeeded by the relevant separated mutual-aid association from the commencement date of the business of the separated mutual-aid association.
[This Article Newly Inserted by Act No. 14015, Feb. 3, 2016]
 Article 55 (Procedures for Granting Authorization for Establishment of Mutual-Aid Associations)
(1) To establish a mutual-aid association, it shall be promoted by at least 200 constructors qualified as members, obtain consent of at least the number of constructors prescribed by Presidential Decree from constructors qualified as members, formulate the articles of association and file an application for authorization with the Minister of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(2) When the Minister of Land, Infrastructure and Transport grants authorization for an application filed under paragraph (1), he/she shall announce it publicly. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Necessary affairs until a mutual-aid association is duly formed and its executives are appointed shall be carried out by promoters.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 55-2 (Steering Committee)
(1) A mutual-aid association shall have a steering committee to deliberate on and decide matters regarding the projects under Article 56, and to supervise the performance of its duties.
(2) The steering committee shall consist of not more than 30 members. <Amended by Act No. 13469, Aug. 11, 2015>
(3) None of the following persons shall become a member of the steering committee: <Newly Inserted by Act No. 12580, May 14, 2014>
1. A person who was declared bankrupt but has not been reinstated;
2. An incompetent person under adult guardianship or an incompetent person under limited guardianship;
3. A person in whose case five years have not passed since his/her imprisonment without labor or heavier punishment as declared by a court was completely executed (including cases where the execution is deemed completed) or exempted;
4. A person who is under the suspension of the execution of imprisonment without labor or heavier punishment as declared by a court;
5. A person in whose case five years have not passed since he/she was subjected to the suspension of construction business or restrictions on qualification for participation in bidding as a corrupt contractor because he/she violated this Act, the Act on Contracts to Which the State Is a Party and other Acts and subordinate statutes and the period of such disposition was completed.
(4) Other matters necessary for the organization, function, and operation of the steering committee shall be prescribed by Presidential Decree. <Amended by Act No. 12580, May 14, 2014>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 56 (Projects of Mutual-Aid Association)
(1) A mutual-aid association shall carry out the following projects:
1. Tender guarantees, contract guarantees (including performance bonds), damage guarantees, defect liability guarantees, advance payment guarantees, subcontract guarantees necessary for members to run construction businesses and other guarantees prescribed by Presidential Decree;
2. Loans of funds necessary for members to run construction businesses;
3. Discount of bills which members receive as the construction price;
4. Good offices for purchasing machinery and materials for construction works for members;
5. Welfare promotion and mutual-aid projects compensating for losses caused by accidents on duty for employees of members and mutual-aid projects compensating for losses incurred from construction works that are required for members' businesses;
6. Projects on research and education related to the improvement and enhancement of construction management and construction technologies;
7. Contributions to construction-related corporations;
8. Establishment and operation of joint-use facilities by members and other projects for the promotion of members' benefits;
9. Provision of data-processing and computer operation-related services for members;
10. Investment in related projects necessary for the attainment of the mutual-aid association's purposes;
11. Projects entrusted by the State, local governments, or public institutions determined by the articles of association;
12. Projects incidental to projects referred to in subparagraphs 1 through 11 and determined by the articles of association.
(2) A mutual-aid association may carry out the following projects: <Amended by Act No. 12580, May 14, 2014>
1. Provision of guarantees and loans to corporations, etc. in which members make an investment to carry out private investment projects, etc. under the Act on Public-Private Partnerships in Infrastructure;
2. Profit-making projects prescribed by Presidential Decree, such as investment in and the provision of loans to real estate investment companies under the Real Estate Investment Company Act or installation and management of sports facilities under the Installation and Utilization of Sports Facilities Act.
(3) Mutual-aid associations may carry out joint projects, such as information exchanges for mutual cooperation and promotion of understanding between respective mutual-aid associations or with mutual-aid associations under other Acts.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 57 (Mutual-Aid Provisions)
(1) Where a mutual-aid association intends to carry out any mutual-aid project referred to in Article 56 (1) 5, it shall stipulate mutual-aid provisions.
(2) The mutual-aid provisions under paragraph (1) shall contain matters necessary for the operation of mutual-aid projects, such as the scope of mutual-aid projects, terms and conditions of mutual-aid contracts, mutual-aid fees, mutual-aid money, and legal liability reserves for appropriating mutual-aid money.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 57-2 (Guarantee Provisions)
(1) Where a mutual-aid association intends to carry out any guarantee project referred to in Article 56 (1) 1, it shall stipulate guarantee provisions.
(2) The guarantee provisions referred to in paragraph (1) shall contain matters necessary for the operation of guarantee projects, such as the scope of guarantee projects, the terms and conditions of guarantee contracts, guarantee fees and legal liability reserves for appropriating guarantees.
[This Article Newly Inserted by Act No. 10719, May 24, 2011]
 Article 58 (Exclusion of Application of the Insurance Business Act)
The Insurance Business Act shall not apply to mutual-aid projects under @Article 56 (1) 5 among projects of a mutual-aid association.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 59 (Transfer, etc. of Shares)
(1) Any current or former member may transfer his/her shares to other members or any person who intends to be members, as prescribed by Presidential Decree.
(2) Any transferee of shares pursuant to paragraph (1) shall succeed to all rights and duties of the transferor on the shares.
(3) The transfer or pledge of shares shall be made by means of transfer of shares or establishment of a pledge under the Commercial Act. <Amended by Act No. 12591, May 20, 2014>
(4) The attachment or provisional attachment of shares under the civil execution procedure or procedures for issuing dispositions on delinquent national taxes, etc. shall be effected by means of attachment or provisional attachment of debts payable to order under Article 233 of the Civil Execution Act.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 60 (Acquisition, etc. of Shares by Mutual-Aid Associations)
(1) Where any of the following grounds arises, a mutual-aid association may acquire shares of any current or former members: Provided, That if subparagraph 1 applies, it shall acquire the shares:
1. Where it intends to decrease contributions;
2. Where it is necessary to realize a security right with which it has members;
3. Where any person who has contributed to the mutual-aid association requests the mutual-aid association to acquire his/her shares to recover his/her contributions;
4. Where two years have passed since any member withdrew;
5. Where any fractional account occurs at the time reserve funds are transferred into contributions.
(2) Where a mutual-aid association acquires shares pursuant to paragraph (1) 1, it shall without delay proceed with reduction procedures of contributions and where it falls under subparagraphs 2 through 5 of the same paragraph, it shall dispose of said shares without delay, but for shares not been disposed of, the contribution therefor may be deducted, as stipulated by the articles of association.
(3) No shares of members shall be the object of a pledge unless they are furnished as security for the obligation to a mutual-aid association.
(4) Where a mutual-aid association acquires shares pursuant to paragraph (1), it shall without delay pay the money paid to the relevant current or former members.
(5) Where a mutual-aid association acquires shares pursuant to paragraph (1), the claim for liquidation money which current or former members have shall be extinguished by prescription unless it is exercised for five years from the date of acquisition of the shares.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 61 (Guarantees, etc. by Credit)
A mutual-aid association may provide a guarantee or loans to its members after appraising the asset status of the members and conducting an actual investigation on their capacity to perform the relevant works, as stipulated by the articles of association.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 62 (Appointment of Agents)
A mutual-aid association may appoint an agent authorized to do all judicial or extra-judicial acts with respect to the affairs of the relevant mutual-aid association from among its executives or employees.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 63 (Accumulation of Legal Liability Reserves, etc.)
(1) A mutual-aid association may appropriate legal liability reserves and contingency reserves according to the types of guarantees at every closing of the settlement of accounts.
(2) Matters necessary for appropriation of legal liability reserves and contingency reserves referred to in paragraph (1) shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 64 (Investigations, etc. of Situations of Execution)
(1) A mutual-aid association may enter a construction site for which it provides a guarantee to investigate the status of execution of construction and may state its opinion to a member who performs the relevant works, as prescribed by Presidential Decree.
(2) A mutual-aid association may authorize any Association or construction-related specialized institutions to conduct investigations of the situations of execution referred to in paragraph (1) on its behalf.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 65 (Investigations and Inspections)
(1) The Minister of Land, Infrastructure and Transport may require any public official under his/her jurisdiction to investigate the affairs or accounting works of a mutual-aid association or inspect its accounting books or other documents if deemed necessary for maintaining the financial soundness of such mutual-aid association. <Amended by Act No. 11690, Mar. 23, 2013>
(2) The Financial Services Commission may conduct an investigation and inspection under paragraph (1) with respect to the mutual-aid projects provided for in Article 56 (1) 5, as prescribed by Presidential Decree.
(3) Deleted. <by Act No. 14015, Feb. 3, 2016>
(4) Any public official, etc. who conducts an investigation or inspection under paragraphs (1) and (2) shall carry a certificate indicating his/her authority and produce it to related persons.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 65-2 (Maintenance, etc. of Financial Soundness of Construction Guarantee Institutions, such as Mutual-Aid Associations)
(1) The Minister of Land, Infrastructure and Transport shall provide guidance on the maintenance, etc. of the financial soundness for the sound development of projects of mutual-aid associations and the protection of contractors pursuant to Article 56. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14015, Feb. 3, 2016>
(2) The Minister of Land, Infrastructure and Transport shall establish standards necessary for supervising mutual-aid associations in order to provide guidance on the maintenance, etc. of financial soundness under paragraph (1) and publicly announce the standards: Provided, That in establishing the standards necessary for supervising mutual-aid associations, he/she shall publicly announce such standards after consultation with the Chairperson of the Financial Services Commission. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14015, Feb. 3, 2016>
(3) Where the Minister of Land, Infrastructure and Transport deems that the financial status of a mutual-aid association falls short of the standards referred to in paragraph (4), such as the cases where any of the equity capital ratio, liquidity ratio, solvency margin ratio, etc. falls short of a fixed level or that the financial status of a mutual-aid association obviously falls short of the standards referred to in paragraph (4) due to the occurrence of a large financial incident or insolvent obligations, he/she may, in order to prevent the insolvency of the mutual-aid association and to induce its sound management, recommend, demand, or order the relevant mutual-aid association or the executive officers thereof to perform the following measures or order to submit an implementation plan therefor: <Newly Inserted by Act No. 14015, Feb. 3, 2016>
1. Increase or reduction of the capital, disposal of assets held or reduction of business outlets and organization;
2. Suspension of the performance of an executive officer's duties or appointment of an administrator who performs the duties of an executive officer on his/her behalf;
3. Whole or partial suspension of business;
4. Limitation of dividend;
5. Additional appropriation for bad debts and reserve for payment by subrogation;
6. Adjustment of guarantee fees and interest rates of loans;
7. Transfer of contracts related to the transfer of business, guarantee business, mutual-aid business, etc.;
8. Other matters corresponding to the provisions referred to in subparagraphs 1 through 7, which are deemed necessary for the enhancement of financial soundness of the mutual-aid association.
(4) In order to take measures under paragraph (3), the Minister of Land, Infrastructure and Transport shall determine and publicly announce the standards and details thereof in advance. <Newly Inserted by Act No. 14015, Feb. 3, 2016>
(5) Where a mutual-aid association which temporarily falls short of the standards referred to in paragraph (4) is deemed to be able to meet the standards in a short period or where any ground corresponding thereto is deemed to exist, the Minister of Land, Infrastructure and Transport may postpone the measures referred to in paragraph (3) for a fixed period. <Newly Inserted by Act No. 14015, Feb. 3, 2016>
[This Article Newly Inserted by Act No. 10719, May 24, 2011]
 Article 66 (Restrictions on Collection of Security Deposits)
Where a mutual-aid association guarantees the performance of duties of a member, a guarantee creditor shall substitute a written guarantee for a security deposit or a work performance guarantee, and shall not collect a security deposit or any other nominal amount otherwise from the member, notwithstanding any stipulation under related Acts and subordinate statutes and written contracts, etc.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 67 (Responsibilities of Mutual-Aid Associations)
(1) A mutual-aid association shall protect the rights and interests of guarantee creditors and guarantee obligors, and where it intends to enact or change guarantee provisions and guarantee stipulations under Article 57-2, it shall report to the Minister of Land, Infrastructure and Transport. <Newly Inserted by Act No. 12580, May 14, 2014>
(2) Where guarantee provisions and guarantee stipulations reported to the Minister of Land, Infrastructure and Transport pursuant to paragraph (1) include terms disadvantageous to a guarantee creditor or guarantee obligor or it is necessary in order to maintain the sound guarantee trade order, he/she may order a mutual-aid association to correct the relevant provisions. <Newly Inserted by Act No. 12580, May 14, 2014>
(3) A mutual-aid association shall pay a guarantee creditor a guarantee deposit, where there arises any cause for which it shall pay the security deposit, as determined by Acts and subordinate statutes or written contracts, etc., with respect to matters it has guaranteed.
(4) The right to a security deposit a guarantee creditor has with a mutual-aid association under paragraph (3) shall be extinguished by prescription unless it is exercised for two years after expiration of the guarantee period. <Amended by Act No. 12580, May 14, 2014>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 68 (Application Mutatis Mutandis of other Acts)
Except as otherwise expressly provided for in this Act, the provisions on corporations under the Civil Act and the provisions on the account of stock companies under the Commercial Act shall apply mutatis mutandis to a mutual-aid association, respectively.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 68-2 Deleted. <by Act No. 14015, Feb. 3, 2016>
 Article 68-3 (Guarantees of Price Payment for Rental of Construction Machinery)
(1) Where a contractor or a subcontractor enters into a contract on rental of construction machinery with a construction machinery rental operator, he/she shall issue a written guarantee which certifies the payment of rental price to the construction machinery rental operator: Provided, That this shall not apply to cases prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, such as where an project owner, a constructor, and a construction machinery rental operator reach an agreement that the project owner shall directly pay such rental price to the construction machinery rental operator. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Deleted. <by Act No. 14015, Feb. 3, 2016>
(3) The parties to a contract for construction works (including a subcontract) shall specify, in detail, the cost for issuing a written guarantee of price payment for renting construction machinery referred to in paragraph (1) in the statement of the contract price calculation (including the statement of subcontract price calculation) for the relevant construction works, as prescribed by Presidential Decree.
(4) Where a mutual aid association established under Article 54 or any agency authorized to perform guarantee affairs under other Acts and subordinate statutes has issued a written guarantee of price payment for renting construction machinery (including the issuance of a modified guarantee) referred to in paragraph (1), or terminates a guarantee agreement, it shall promptly notify the project owner, the contractor (limited to a guarantee agreement reached under a contract between a subcontractor and a construction machinery rental operator), and the construction machinery rental operator of details thereof, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(5) The amount of guarantee of a written guarantee of price payment for renting construction machinery referred to in paragraph (1), matters to be performed by the guarantee-related parties, etc., and other specific matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(6) Where a project owner is the State, a local government, or a public institution prescribed by Presidential Decree, such owner shall confirm whether a contractor has issued a guarantee to a construction machinery rental operator under paragraph (1), so as to protect the rental price of the construction machinery. <Newly Inserted by Act No. 14015, Feb. 3, 2016>
[This Article Newly Inserted by Act No. 11576, Dec. 18, 2012]
CHAPTER VIII CONSTRUCTION DISPUTE CONCILIATION COMMITTEE
 Article 69 (Establishment of Construction Dispute Conciliation Committee)
(1) The Construction Dispute Conciliation Committee (hereinafter referred to as the "Committee") shall be established under the jurisdiction of the Minister of Land, Infrastructure and Transport to conciliate disputes on construction business and construction service business. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12012, Aug. 6, 2013>
(2) Deleted. <by Act No. 12012, Aug. 6, 2013>
(3) The Committee shall examine and conciliate the following disputes at the request of either party or both parties to the dispute: <Amended by Act No. 12012, Aug. 6, 2013>
1. Disputes on the responsibility between persons involved in construction works, such as design, execution, supervision, etc.;
2. Disputes on construction works between project owners and contractors: Provided, That disputes related to the interpretation of the Act on Contracts to Which the State Is a Party and the Act on Contracts to Which a Local Government Is a Party shall be excluded;
3. Disputes on subcontracts of construction works between contractors and subcontractors: Provided, That matters to which the Fair Transactions in Subcontracting Act applies shall be excluded;
4. Disputes on the responsibility, etc. for execution between contractors and any third party;
5. Dispute on the guarantee responsibility between parties to a contract agreement of construction works and guarantors;
6. Other disputes on matters prescribed by Presidential Decree.
(4) In order to conduct affairs of the Committee, a secretariat may be established in the Committee, and the secretariat may hire expert advisers in order to assist investigative affairs of members of the Committee. <Newly Inserted by Act No. 12012, Aug. 6, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 69-2 Deleted. <by Act No. 12012, Aug. 6, 2013>
 Article 70 (Organization of Committees)
(1) The Committee shall be comprised of not more than 15 members, including one chairperson and one vice-chairperson.
(2) Public officials belonging to any central administrative agency prescribed by Presidential Decree, who are designated by the head of the relevant agency, and persons commissioned by the Minister of Land, Infrastructure and Transport from among any of the following persons shall become members of the Committee: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12012, Aug. 6, 2013>
1. A person who is or was in office as an assistant professor or higher teaching engineering or jurisprudence at a school prescribed by the Higher Education Act;
2. A certified judge, public prosecutor, or lawyer;
3. A person who has abundant knowledge about and experience in construction works, construction business, or construction service business and meets the requirements prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(3) The Minister of Land, Infrastructure and Transport shall appoint the chairperson of the Committee from among its members and the vice chairperson shall be elected by the Committee from among its members. <Amended by Act No. 12012, Aug. 6, 2013>
(4) The term of office for the members who are not public officials shall be three years, and they may be reelected.
(5) A member appointed to fill a vacancy shall hold office for the remainder of the predecessor's term.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 70-2 (Disqualifications for Members of Committee)
None of the following persons shall become a member of the Committee:
1. A person who was declared bankrupt but has not been reinstated;
2. An incompetent person under adult guardianship or under limited guardianship;
3. A person whose qualification is suspended by the ruling of a court or law;
4. A person in whose case three years have not passed since his/her imprisonment without labor or heavier punishment as declared by a court was completely executed (including cases where the execution is deemed completed) or exempted;
5. A person who is under the suspension of the execution of imprisonment without labor or heavier punishment as declared by a court.
[This Article Newly Inserted by Act No. 12580, May 14, 2014]
 Article 71 (Meetings of Committees)
(1) A meeting of the Committee shall be convened by the chairperson.
(2) Meetings of the Committee shall be held with a majority of all incumbent members present and resolutions shall be passed with the affirmative vote of a majority of the members present.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 72 (Notification, etc. of Applications for Dispute Conciliation)
Where the Committee receives an application for dispute conciliation from either party to the dispute, it shall notify the other party to the dispute of the details of such application, and the other party to the dispute shall attend and participate in meetings for the dispute conciliation.
[This Article Wholly Amended by Act No. 12012, Aug. 6, 2013]
 Article 73 (Refusal or Suspension of Conciliation)
(1) Where the Committee deems that it is inappropriate to conciliate a dispute by nature of the dispute or an application for conciliation is filed for an improper purpose, the Committee may refuse conciliation. In such cases, it shall notify the relevant applicant of the ground, etc. for refusal of conciliation.
(2) Deleted. <by Act No. 12012, Aug. 6, 2013>
(3) Where one of the parties to a dispute files a legal action, the Committee shall suspend the conciliation process and notify the parties that the conciliation has been suspended due to the filing of the legal action.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 74 (Processing Period)
(1) A Committee shall examine an application for dispute conciliation and prepare a draft conciliation within 60 days after receipt of the application: Provided, That it may extend the period up to 60 days through resolution by the Committee if any justifiable ground exists. <Amended by Act No. 14545, Jan. 17, 2017>
(2) Where a Committee extends the period pursuant to the proviso to paragraph (1), it shall notify the parties of the reason for extension of the period or other matters on the extension of the period.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 75 (Investigations and Hearing of Opinions)
(1) Where the Committee deems it necessary, it may require members or expert advisers of the Committee, or public officials belonging to the Ministry of Land, Infrastructure and Transport to read related documents or gain access to a related place of business to conduct an investigation. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12012, Aug. 6, 2013>
(2) The Committee may require parties to dispute conciliation or parties interested in the dispute to attend its meetings to speak at the meetings, and hear opinions of related experts, where necessary. <Amended by Act No. 12012, Aug. 6, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 76 (Conciliation Division)
(1) Where it is deemed necessary to efficiently perform conciliation affairs, Committees may establish a conciliation division comprised of not more than five members by each field of conciliation cases.
(2) Members of a conciliation division referred to in paragraph (1) shall be designated by the chairperson.
(3) Conciliation divisions shall examine in advance a conciliation case, prepare a draft conciliation, and present it to a meeting of the Committee.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 77 (Recommendations for Agreements)
Where the Committee receives an application for conciliation, it may recommend the parties to a dispute to reach an agreement.
[This Article Wholly Amended by Act No. 12012, Aug. 6, 2013]
 Article 78 (Effects, etc. of Conciliation)
(1) Where the Committee prepares a plan of conciliation, it shall present it without delay to the relevant parties.
(2) Upon receipt of a plan of conciliation under paragraph (1), the parties shall notify the Committee of whether it accepts such plan of conciliation within 15 days after receipt of the plan of conciliation.
(3) Where the parties to a dispute agree on the settlement of the dispute pursuant to Article 77 or accept a plan of conciliation under paragraph (1), the Committee shall prepare a written conciliation, and the chairperson and each party shall sign or affix their names and seals thereon. <Amended by Act No. 12012, Aug. 6, 2013>
(4) The details of a written conciliation under paragraph (3) shall have the same effect as a consent judgment. <Amended by Act No. 12012, Aug. 6, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 78-2 (Interruption of Prescription)
(1) An application for conciliation under Article 69 (3) shall have the effect of the interruption of prescription: Provided, That the foregoing shall not apply where such application is withdrawn, or conciliation is refused or suspended.
(2) Prescription interrupted pursuant to the main sentence of paragraph (1) shall newly proceed where a party to a dispute falls under any of the following:
1. Where a written conciliation is prepared pursuant to Article 78 (3), and the chairperson of the Committee and each party to the dispute affix their signatures or signatures and seals thereto;
2. Where either party or both parties to the dispute expresses (express) his/her (their) intention that he/she (they) does (do) not agree to any decision on conciliation.
[This Article Newly Inserted by Act No. 12012, Aug. 6, 2013]
 Article 78-3 (Non-disclosure of Procedures for Conciliation)
Procedures followed by the Committee shall not be disclosed: Provided, That where the majority of the members of the Committee give consent, the Committee may disclose such procedures.
[This Article Newly Inserted by Act No. 12012, Aug. 6, 2013]
 Article 79 (Sharing of Expenses)
(1) Expenses incurred in relation to appraisal, diagnosis, test, etc. for dispute conciliation shall be borne by the relevant applicant: Provided, That where an agreement thereon is made between the parties, they shall be governed by the agreement.
(2) Where it is deemed necessary, the Committee may have parties pay expenses referred to in paragraph (1) in advance, as prescribed by Presidential Decree.
(3) The scope of expenses referred to in paragraph (1) shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 79-2 (Service of Documents)
Articles 174 through 197 of the Civil Procedure Act shall apply mutatis mutandis to the service of documents related to dispute conciliation.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 80 (Operation, etc. of Committee)
Except as otherwise expressly provided for in Articles 69 through 79 and 79-2, the composition, organization and operation of the Committee and conciliation process and other necessary matters shall be prescribed by Presidential Decree. <Amended by Act No. 12012, Aug. 6, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
CHAPTER IX CORRECTION ORDERS, ETC.
 Article 81 (Correction Orders, etc.)
Where any constructor falls under any of the following cases, the Minister of Land, Infrastructure and Transport may order the constructor to make corrections within a specified period, or give other necessary instructions: <Amended by Act No. 11576, Dec. 18, 2012; Act No. 11690, Mar. 23, 2013; Act No. 12012, Aug. 6, 2013; Act No. 13469, Aug. 11, 2015; Act No. 14015, Feb. 3, 2016>
1. Where he/she fails to perform contracted construction works without good cause;
2. Deleted; <by Act No. 14015, Feb. 3, 2016>
3. Where he/she fails to notify the project owner of the entries in the construction work ledger in violation of Article 22 (6);
4. Where he/she violates the duties of constructors referred to in Article 22 (7), 34, 34-2 (2), 36 (1), 36-2 (1), 37, 38 (1), or 68-3 (1);
5. Where he/she fails to be held liable for any defect as prescribed in Article 28;
6. Where he/she coerces a person to enter into an agreement that includes any unfair special stipulations in violation of Article 38 (2);
7. Where he/she fails to assign a construction engineer to a construction site in violation of Article 40 or an assigned construction engineer is deemed inappropriate for execution management of the relevant construction works;
8. Where he/she fails to display a sign under Article 42 (1) or install a signboard under Article 42 (2);
9. Where he/she fails to file a report under Article 49 (1) without good cause;
10. Where he/she is likely to cause faulty construction works due to his/her failure to conscientiously perform the relevant construction works.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 82 (Suspension, etc. of Business)
(1) Where any constructor falls under any of the following cases, the Minister of Land, Infrastructure and Transport may order the constructor to suspend his/her business for a set period of up to six months or impose a penalty surcharge not exceeding 100 million won on him/her in lieu of suspension of business: <Amended by Act No. 11466, Jun. 1, 2012; Act No. 11576, Dec. 18, 2012; Act No. 11690, Mar. 23, 2013; Act No. 11794, May 22, 2013; Act No. 12012, Aug. 6, 2013; Act No. 14015, Feb. 3, 2016>
1. Where defects equal to or greater than the scale determined by Ordinance of the Ministry of Land, Infrastructure and Transport occur at least on three occasions due to causes attributable to a contractor or subcontractor during the defect liability period referred to in Article 28. In such cases, the contractor shall be deemed to have the same responsibility for any cause attributable to his/her subcontractor;
2. When he/she borrows/lends a national technical qualification certificate or a career certificate of construction technology from/to any third person in violation of Article 21-2;
3. When he/she submits false performance records of construction works and the status of affiliated engineers, etc. under Article 23 (3);
4. Where he/she gives a false notice referred to in Article 29 (4);
5. Where he/she fails to comply with a correction order or instruction for correction referred to in Article 81 (excluding subparagraphs 3, 4, 6 and 8) without good cause;
6. Where he/she falls under any of the following items:
(a) Where he/she fails to comply with an order to make corrections referred to in Article 54 (1) of the Construction Technology Promotion Act;
(b) Where he/she violates the duty to prepare shop drawings referred to in Article 48 (4) of the Construction Technology Promotion Act or performs works without examination and confirmation by a construction engineer who conducts construction project management or construction supervisor;
(c) Where he/she fails to conscientiously conduct a quality test or inspection referred to in Article 55 of the Construction Technology Promotion Act;
(d) Where he/she fails to conscientiously conduct a safety checkup referred to in Article 62 (2) of the Construction Technology Promotion Act;
(e) Where he/she fails to comply with an order to make corrections referred to in Article 80 of the Construction Technology Promotion Act;
7. Where a constructor who causes a serious accident referred to in the Occupational Safety and Health Act is requested to suspend his/her business by the Minister of Employment and Labor or by a State or local government agency pursuant to other Acts and subordinate statutes;
8. Where he/she violates the duties of constructors referred to in Article 22 (7), 34, 36 (1), 37, 38 (1), or 68-3 (1);
9. Where he/she coerces a person to enter into an agreement that includes any unfair special stipulations, in violation of Article 38 (2).
(2) Where any constructor (in cases under subparagraph 5, referring to a constructor and a contractor if a subcontract is made, and a constructor and a person who further subcontracts with a third party if a further subcontract is made) falls under any of the following cases, the Minister of Land, Infrastructure and Transport may order the constructor to suspend his/her business for a set period of up to one year or impose a penalty surcharge not exceeding the amount (five hundred million won in cases falling under subparagraph 5) equivalent to up to 30 percent of the contract price (referring to the subcontract price in cases under subparagraph 3) of the works constituting the relevant violation in lieu of the suspension of business: <Amended by Act No. 11466, Jun. 1, 2012; Act No. 11576, Mar. 23, 2013>
1. Where he/she is awarded a contract or subcontract for construction works, in violation of Article 16;
2. Where he/she fails to directly perform construction works, in violation of Article 28-2 (1);
3. Where he/she violates restrictions on subcontracts referred to in Articles 25 (2) and 29 (1) through (3);
4. Where he/she is awarded a contract for construction works which falls short of the lower limits of the construction price referred to in Article 47 (2);
5. Where he/she unconscientiously performs construction works intentionally or by negligence.
(3) Where any person on whom a penalty surcharge is imposed pursuant to paragraph (1) or (2) fails to pay the penalty surcharge by the due date, it shall be collected in the same manner as delinquent national or local taxes are collected.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 82-2 (Suspension, etc. of Business for Acquisition or Provision of Economic Benefits, etc. by Unlawful Requests)
(1) Where any constructor acquires or provides economic benefits or assets in exchange for an unlawful request in violation of Article 38-2, the Minister of Land, Infrastructure and Transport may order him/her to suspend his/her business for a set period of up to one year, or impose a penalty surcharge not exceeding one billion won on him/her in lieu of the suspension of business, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Where any constructor repeats a violation within three years from the date he/she is subject to the suspension of business or a penalty surcharge referred to in paragraph (1), the Minister of Land, Infrastructure and Transport may order his/her to suspend his/her business for a set period of up to two years, as prescribed by Presidential Decree: Provided, That where he/she deems that ordering suspension of business may incur an irrecoverable loss, he/she may impose a penalty surcharge not exceeding two billion won in lieu of the suspension of business, as prescribed by Presidential Decree.
(3) Where any constructor repeats a violation on at least two occasions within three years from the date he/she is subject to the suspension of business or a penalty surcharge referred to in paragraph (1), the Minister of Land, Infrastructure and Transport shall cancel his/her registration of construction business.
(4) No dispositions referred to in paragraphs (1) through (3) shall be issued where the relevant corporation or individual has not been negligent in giving considerable attention and supervision concerning the relevant duties to prevent such violation.
(5) Where a person on whom a penalty surcharge is imposed under paragraph (1) or (2) fails to pay the penalty surcharge by the due date, it shall be collected in the same manner as delinquent national or local taxes are collected.
[This Article Newly Inserted by Act No. 10719, May 24, 2011]
 Article 83 (Cancellation, etc. of Registration of Construction Business)
Where any constructor (in cases falling under subparagraph 10, referring to a constructor and a contractor if a subcontract is made, and a constructor and a person who further subcontracts with a third party if a further subcontract is made) falls under any of the following cases, the Minister of Land, Infrastructure and Transport may cancel the registration of the constructor's construction business or order the constructor to suspend his/her business for a set period of up to one year: Provided, That where he/she falls under subparagraph 1, 2-2, 3-2, 3-3, 4 through 6, 8, 8-2, 12, or 13, the Minister of Land, Infrastructure and Transport shall cancel the registration of the constructor's construction business: <Amended by Act No. 11466, Jun. 1, 2012; Act No. 11690, Mar. 23, 2013; Act No. 12580, May 14, 2014; Act No. 14015, Feb. 3, 2016; Act No. 14708, Mar. 21, 2017>
1. Where he/she obtains registration of construction business referred to in Article 9 by improper means;
2. Deleted; <by Act No. 14015, Feb. 3, 2016>
2-2. Where he/she fails to commence his/her business within one year after he/she obtains registration of construction business under Article 9 or he/she files a report with the director of the competent tax office regarding temporary closure of his/her business for at least one consecutive year under Article 8 (6) of the Value-Added Tax Act, and he/she has fallen short of the standards for registration of construction business referred to in Article 10;
3. Where he/she falls short of the standards for registration of construction business referred to in Article 10: Provided, That the same shall not apply to the cases prescribed by Presidential decree, such as temporarily falling short of the standards for registration;
3-2. Where he/she is subject to the suspension of business for falling short of the standards for registration of construction business referred to in Article 10 but fails to rectify the relevant matters by the end date of the suspension of business;
3-3. Where he/she is subject to the suspension of business for falling short of the standards for registration of construction business referred to in Article 10, and falls short of the same standard within three years;
4. Where he/she becomes disqualified for registration of construction business as prescribed in any subparagraph of Article 13 (1): Provided, That where any executive of a corporation registered for a construction business becomes disqualified for registration of construction business, the same shall not apply if the relevant executive is replaced within three months from the date such fact is disclosed;
5. Where he/she allows any third person to use his/her name or trade name to contract for or perform construction works, or assists in doing such act, or he/she lends his/her construction business registration certificate or construction business registration booklet, or assists in doing such act in violation of Article 21;
6. Where he/she meets the standards for registration of construction business by borrowing a national technical qualification certificate or a career certificate of construction technology from any third party, or he/she falls short of the standards for registration of construction business as a result of lending his/her national technical qualification certificate or career certificate of construction technology to any third party in violation of Article 21-2;
7. Deleted; <by Act No. 14015, Feb. 3, 2016>
8. Where he/she violates a disposition of suspension of business taken under Article 82 or 82-2, or this Article;
8-2. Where he/she fails to file a report referred to in Article 49 (1) (limited to where a constructor is required to file such report to determine whether he/she meets the standards for registration of construction business) by the end date of a disposition of suspension of business taken under Article 82 (1) 5 for his/her violation of subparagraph 9 of Article 81;
9. Where he/she fails to commence the business within one year he/she obtains registration of construction business or he/she suspends the business for at least one consecutive year;
10. Where he/she unconscientiously performs construction works intentionally or by negligence to cause serious damage to the major structural part of a facility and thereby to place the public in danger;
11. Where a State or local government agency requests suspension of business or cancellation of registration under other Acts and subordinate statutes;
12. Where a constructor makes a report on the closure of his/her business under Article 8 (6) of the Value-Added Tax Act or the head of the competent tax office cancels his/her registration of a business operator pursuant to paragraph (7) of the aforesaid Article;
13. Where he/she is subject to the imposition of a penalty surcharge under Article 22 of the Monopoly Regulation and Fair Trade Act by committing any of the following violations, and is subject to further imposition of a penalty surcharge on at least two occasions within nine years from the date of the first imposition of a penalty surcharge by committing any of the following violations again during the same period:
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 83-2 (Requests for Correction Orders, etc. and Reports)
(1) The head of a local government finds that a constructor has violated this Act within his/her jurisdiction, he/she may request the administrative agency with which the constructor’s business has been registered to take measures, such as a correction order, suspension of business, or cancellation of registration under Articles 81, 82, 82-2 and 83.
(2) Where the head of a local government has taken measures, such as a correction order, suspension of business or cancellation of registration, pursuant to Articles 81, 82, 82-2 and 83 (limited to where he/she has been entrusted under Article 91 (1)), he/she shall submit a report on the details of and grounds for dispositions, etc. to the Minister of Land, Infrastructure and Transport, as determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Where the State, a local government or public institution prescribed by Presidential Decree finds a violation of Article 38-2, it shall notify the administrative agency with which the relevant constructor’s business has been registered so that the agency may suspend his/her business, impose a penalty surcharge on him/her, or cancel his/her registration pursuant to Article 82-2.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 83-3 (Confirmation of Business Closure, etc.)
In order to confirm the fact of business closure or cancellation of business registration under subparagraph 12 of Article 83 (hereafter referred to as "business closure, etc." in this Article), the Minister of Land, Infrastructure and Transport or the head of a local government (applicable only to cases where necessary to deal with the affairs delegated under Article 91 (1); hereafter the same shall apply in this Article) may request the head of the competent tax office to provide tax information, such as business closure, etc., of the relevant business operator by indicating his/her business registration number. In such cases, the Minister of Land, Infrastructure and Transport and the head of the local government may share administrative information under Article 36 (1) of the Electronic Government Act, if necessary to confirm the fact of business closure, etc.
[This Article Newly Inserted by Act No. 14015, Feb. 3, 2016]
 Article 84 (Detailed Standards for Dispositions, such as Suspension of Business)
Where a disposition of suspension of business or a disposition for imposition of a penalty surcharge is issued, or the registration of construction business is cancelled or a disposition of suspension of business is issued pursuant to Article 82, 82-2, or 83, standards for cancelling the registration of construction business or for suspension of business, the period of suspension of business, the amount of a penalty surcharge depending on the category and degree of violations, and other necessary matters shall be prescribed by Presidential Decree. In such cases, the period of suspension of business, etc. may be mitigated for persons who have completed the education, under Article 9-2 (3), as prescribed by Presidential Decree. <Amended by Act No. 13469, Aug. 11, 2015>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 84-2 (Period of Exclusion)
Where the period referred to in each of the following has expired, the Minister of Land, Infrastructure and Transport shall not order a constructor to suspend his/her business, impose a penalty surcharge on him/her, or cancel his/her registration of construction business pursuant to Article 82, 82-2, or 83: <Amended by Act No. 11690, Mar. 23, 2013>
1. Ten years from the end date of the defect liability period for the relevant works in cases of violation of Article 82 (1) 1 or (2) 5, or subparagraph 10 of Article 83;
2. Five years from the end date of acts of violation in cases of violation of Article 82 (excluding paragraphs (1) 1, 8 and 9, and (2) 5), 82-2 or 83 (excluding subparagraph 10);
3. Three years from the end date of acts of violation in cases of violation of Article 82 (1) 8 or 9.
[This Article Newly Inserted by Act No. 11576, Dec. 18, 2012]
 Article 85 (Requests for Sanctions by Interested Persons)
Where a constructor falls under any subparagraph of Article 81, any interested person may request the Minister of Land, Infrastructure and Transport to take appropriate measures against the constructor stating the grounds therefor. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 85-2 (Succession, etc. to Position of Constructor)
(1) Where a person whose registration of construction business was cancelled following a report on business closure under Article 20-2 has filed for re-registration as a constructor in accordance with Article 9 within six months, and falls under any of the following cases, the relevant constructor shall succeed to the position of the constructor before the report on business closure: <Amended by Act No. 11466, Jun. 1, 2012; Act No. 14015, Feb. 3, 2016>
1. Where he/she files for re-registration for the same category of construction business as he/she registered at the time of cancellation of registration;
2. In circumstances prescribed by Presidential Decree in which he/she files for registration of a different category of construction business, the work scope of which fully or partially overlaps with the work scope of the business category under which he/she was registered at the time of cancellation of registration.
(2) An administrative disposition issued to the constructor before a report on business closure shall be effective with respect to the person who succeeds to the position of a constructor under paragraph (1).
(3) The Minister of Land, Infrastructure and Transport may issue the person who succeeds to the position of a constructor before the report on business closure under paragraph (1), a correction order, business suspension, or the cancellation of registration under Articles 81, 82, 82-2 and 83 on account of any violation committed before the report on business closure. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 85-3 (Public Announcement of Cancellation of Registration, etc.)
(1) Where the Minister of Land, Infrastructure and Transport takes measures, such as a correction order, business suspension, cancellation of registration or imposition of an administrative fine against contractors as prescribed in Articles 81, 82, 82-2, 83 and 101, he/she shall publicly announce the details thereof and notify the relevant person thereof, as determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013>
(2) The Minister of Land, Infrastructure and Transport may provide the details of public announcement made under paragraph (1) to the financial institutions or credit information agencies prescribed by Presidential Decree. In such cases, the Minister of Land, Infrastructure and Transport shall notify the relevant person of provision of such details. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 86 (Hearings)
Where the Minister of Land, Infrastructure and Transport intends to suspend business, impose a penalty surcharge, or cancel registration pursuant to Article 82, 82-2 or 83, he/she shall hold a hearing: Provided, That he/she shall not hold a hearing where the Minister intends to cancel the registration of a constructor who falls under subparagraph 12 of Article 83 after closing his/her business. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 86-2 (Inspections, etc. of Project Owners)
Where the State, a local government, or a public institution prescribed by Presidential Decree is an project owner, the Minister of Land, Infrastructure and Transport may inspect and verify the responsibilities of the project owner referred to in Article 7 (2) to elevate its ordering capacity and the management capacity of construction works. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 86-3 (Instruction, Supervision, etc. over Construction Administration)
The Minister of Land, Infrastructure and Transport may establish or implement an instruction and inspection plan, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, to give instructions or conduct inspections on sound construction administration, including performance of business affairs concerning registration of construction business, etc. or supervision over construction works. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 86-4 (Publication, etc. of Lists of Constructors Who Make Delayed Payments Habitually)
(1) The Minister of Land, Infrastructure and Transport shall publish a list of constructors whose total amount of delayed payments for the subcontract price, the contraction machinery rental price and the price of component materials for construction works is at least 30 million won (hereinafter referred to as "constructors who make delayed payments habitually") from among the constructors who have been subjected to measures (excluding measures with which procedures for dissatisfaction are under way, and where a constructor has been subjected to measures at least twice due to the same offense, the number of times of such measures shall be deemed once) under Article 81 or 82 at least twice, in violation of Article 34 (1) (including cases where it is applied mutatis mutandis in Article 32 (4)) for the last three years from the immediately preceding year: Provided, That the foregoing shall not apply where there are reasons prescribed by Presidential Decree, such as where the publication of a list is ineffective due to the death of a constructor who makes delayed payments habitually or a report of his/her disappearance.
(2) The Deliberative Committee on the Publication of List of Constructors Who Make Delayed Payments Habitually (hereafter in this Article referred to as the "Deliberative Committee") shall be established under the jurisdiction of the Ministry of Land, Infrastructure and Transport in order to deliberate on whether to publish a list of constructors who make delayed payments habitually under paragraph (1).
(3) The Minister of Land, Infrastructure and Transport shall notify constructors subject to publication after deliberations by the Deliberative Committee of the fact that they are subject to the publication of a list, and give them an opportunity to make explanations within a fixed period of at least three months.
(4) When the Minister of Land, Infrastructure and Transport evaluates the capability of performing construction works under Article 23, he/she may reflect the record of delayed payments of constructors who make delayed payments habitually, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(5) Methods of the publication of a list of constructors who make delayed payments habitually and matters necessary for the organization and operation of the Deliberative Committee under paragraphs (1) and (2) shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 12580, May 14, 2014]
CHAPTER X SUPPLEMENTARY PROVISIONS
 Article 87 (Implementation of Retirement Pension System for Construction Workers)
(1) Any constructor who performs construction works prescribed by Presidential Decree shall subscribe to the retirement pension system for construction workers under the Act on the Employment Improvement, etc. of Construction Workers.
(2) Parties to a contract agreement of construction works, who are obliged to subscribe to the retirement pension system for construction workers pursuant to paragraph (1), shall specify the amount required for the subscription to the retirement pension system for construction workers in the statement of the contract price calculation for the relevant construction works, as prescribed by Presidential Decree.
(3) The Minister of Land, Infrastructure and Transport may provide preferential treatment to constructors who have subscribed to the retirement pension system for construction workers pursuant to paragraph (2) in the appraisal of their execution capacity referred to in Article 23 and implementation of other construction polices. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 87-2 (Training and Management of Construction Experts)
(1) The Minister of Land, Infrastructure and Transport may establish and promote policies for training and managing the human resources with specialized techniques and skills in the field of construction (hereinafter referred to as "construction experts"). <Amended by Act No. 11690, Mar. 23, 2013>
(2) Policies established by the Minister of Land, Infrastructure and Transport in accordance with paragraph (1) shall include the following: <Amended by Act No. 11690, Mar. 23, 2013>
1. Matters concerning supply of, and demand for, and utilization of construction experts;
2. Matters concerning training and education of construction experts;
3. Matters concerning career management and career certification for construction experts;
4. Other matters prescribed by Presidential Decree necessary for training and management of construction experts.
(3) The Minister of Land, Infrastructure and Transport may provide assistance to agencies involved in construction experts, the Association, mutual-aid associations, and constructors if necessary to promote the policies for training and managing construction experts. <Amended by Act No. 11690, Mar. 23, 2013>
(4) Matters necessary for training and management of construction experts and assistance referred to in paragraphs (1) through (3) shall be prescribed by Presidential Decree.
(5) The Minister of Land, Infrastructure and Transport may request the heads of the relevant central administrative agencies, agencies involved in construction experts, such as agencies operating the retirement pension system for construction workers under Article 87, Associations, mutual-aid associations, constructors, etc. to submit data required for training and managing construction experts, as prescribed by Presidential Decree. In such cases, the person so requested shall comply therewith, except in extenuating circumstances. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 88 (Prohibition of Seizure on Wages)
(1) An amount equivalent to wages to be paid to workers of the relevant works (including any works subcontracted) from among the contract price of construction works for which a constructor is awarded a contract shall not be seized.
(2) The scope of the amount equivalent to wages referred to in paragraph (1) and method for calculation thereof shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 89 (Prohibition against Divulging Facts Learned in Course of Performing Duties)
None of the following persons shall divulge the status of property and duties of a constructor which he/she has learned in the course of performing his/her duties except in extenuating circumstances: <Amended by Act No. 12012, Aug. 6, 2013>
1. A current or former public official engaged in the affairs of registration, report, or supervision referred to in this Act;
2. A person who conducts or conducted affairs relating to dispute conciliation, such as members or expert advisers of the Committee;
3. A person who is or was engaged in affairs entrusted under Article 91 (3).
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 90 (Legal Fiction as Public Officials for Purposes of Penalty Provisions)
Members of the Committee, persons other than public officials from among the members of the Deliberative Committee on the Publication of List of Constructors Who Make Delayed Payments Habitually, or persons engaged in affairs entrusted under Article 91 (3) shall be deemed public officials for the purposes of Articles 127 and 129 through 132 of the Criminal Act. <Amended by Act No. 14015, Feb. 3, 2016>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 91 (Delegation and Entrustment of Authority)
(1) The Minister of Land, Infrastructure and Transport may partially delegate his/her authority vested under this Act to the heads of agencies affiliated with the Ministry of Land, Infrastructure and Transport, Mayors/Do Governors, or heads of Sis/Guns/Gus (referring to the heads of autonomous Gus), as prescribed by Presidential Decree. <Amended by Act No. 10719, May 24, 2011; Act No. 11690, Mar. 23, 2013>
(2) Deleted. <by Act No. 5965, Apr. 15, 1999>
(3) The Minister of Land, Infrastructure and Transport may entrust the following authorities to an agency designated by the Minister of Land, Infrastructure and Transport, as prescribed by Presidential Decree, from among the authorities of the Minister of Land, Infrastructure and Transport vested under this Act: <Amended by Act No. 10719, May 24, 2011; Act No. 11690, Mar. 23, 2013; Act No. 13469, Aug. 11, 2015; Act No. 14015, Feb. 3, 2016>
1. Receipt of applications for registration of construction business pursuant to Article 9 and confirmation of the details of such applications;
2. Receipt of applications for alteration of entries in a construction business registration certificate or a construction business registration booklet pursuant to Article 9-2 and confirmation of the details of such applications;
2-2. Execution of education on construction business ethics and practice under Article 9-3;
3. Receipt of reports on the transfer of, consolidation with and succession to a construction business pursuant to Article 17, and confirmation of the details of such reports;
4. Appraisal of the execution capacity of constructors, and receipt and confirmation of the details of performance records of construction works referred to in Article 23;
5. Appraisal of construction project manager capacity of construction project managers and receipt and confirmation of the results, etc. of construction management under Article 23-2;
6. Building-up and operation of the comprehensive management system of construction industry information referred to in Article 24;
7. Determination of the lower limits of the construction price referred to in Article 47 (2);
8. Guidance for cooperation between constructors referred to in Article 48;
9. Request for submission of data necessary to determine whether a constructor meets the standards for registration in connection with an investigation into the actual conditions of the constructor conducted under Article 49, the confirmation of the content thereof, and other matters that the Minister of Land, Infrastructure and Transport deems necessary;
10. Training and management of construction experts under Article 87-2.
 Article 92 (Fees)
Any of the following persons shall pay fees, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: <Amended by Act No. 11690, Mar. 23, 2013>
1. A person who files an application for registration of construction business pursuant to Article 9 (1) and (2);
2. A person who files an application to re-issue a construction business registration certificate or construction business registration booklet under Article 9-2 (3);
3. A person who files an application for appraisal and public announcement of his/her execution capacity under Article 23 (1);
4. A person who files an application for appraisal and public announcement of his/her construction management capacity under Article 23-2 (1);
5. A person provided with construction industry information under Article 24 (1);
6. A person who files an application for dispute conciliation pursuant to Article 69 (3).
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
CHAPTER XI PENALTY PROVISIONS
 Article 93 (Penalty Provisions)
(1) Any constructor or construction engineer assigned to a construction site pursuant to Article 40 (1), who causes serious damage to any major structural sections of a bridge, tunnel, railroad or other facilities prescribed by Presidential Decree during the defect liability period referred to in Article 28 after commencing the relevant construction works and poses danger to the public, by performing such construction works in violation of any Acts and subordinate statutes governing the safety of construction works, shall be punished by imprisonment with labor for not more than ten years.
(2) Any person who results in the death or injury of other persons by committing the crime referred to in paragraph (1) shall be punished by life imprisonment or imprisonment with labor for at least three years.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 94 (Penalty Provisions)
(1) Any person who commits the crime referred to in Article 93 (1) due to malpractice shall be punished by imprisonment with or without prison labor for not more than five years or by a fine not exceeding 50 million won.
(2) Any person who results in the death or injury of other persons by committing the crime referred to in Article 93 (1) due to malpractice shall be punished by imprisonment with or without labor not more than ten years or by a fine not exceeding 100 million won.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 95 (Penalty Provisions)
Any person who does any of the following acts in a tender for construction works shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding 200 million won: <Amended by Act No. 14015, Feb. 3, 2016>
1. Tendering at a prearranged price in collusion with other bidders for purposes of making unjust enrichment or interfering with fair price-fixing;
2. Presenting an estimated tender of another constructor;
3. Interfering with tenders of other constructors by deceptive means, threat of force or other means.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 95-2 (Penalty Provisions)
Any of the following persons shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding 50 million won: <Amended Inserted by Act No. 14708, Mar. 21, 2017>
1. A person who performs construction business without registration as prescribed in Article 9 (1) or with registration obtained by illegal means;
2. A constructor who permits any third person to contract or perform construction works by using his/her name or trade name and the other party involved, and a constructor who lends his/her construction business registration certificate or construction business registration booklet and the other party involved, in violation of Article 21 (1) or (2);
3. A person who assists in contracting or performing construction works using any third person's name or trade name or lending a construction business registration certificate or construction business registration booklet;
4. The owner of a building who allows any person to contract or perform construction works, in violation of Article 21 (4);
5. A person who acquires economic benefits or assets in exchange for an unlawful request or a person who provides economic benefits or assets in exchange for an unlawful request, in violation of Article 38-2.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 96 (Penalty Provisions)
Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won: <Amended by Act No. 12580, May 14, 2014; Act No. 14015, Feb. 3, 2016>
1. Deleted; <by Act No. 14708, Mar. 21, 2017>
2. A person who engages in construction business without filing a report referred to in Article 17 or by filing a report by improper means;
3. Deleted; <by Act No. 14708, Mar. 21, 2017>
4. A person who awards a subcontract in violation of Articles 25 (2) and 29 (1) through (3);
4-2. A person who conducts acts to disadvantage in violation of Article 38-3;
5. A person who performs construction works in violation of Article 41;
6. A person who violates a disposition of suspension of business referred to in Article 82, 82-2, or 83 without good cause.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 97 (Penalty Provisions)
Any of the following persons shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding ten million won: <Amended by Act No. 12580, May 14, 2014>
1. A person who violates the restriction on indication and advertisement referred to in Article 11;
2. A person who submits false performance records of construction works, status of affiliated engineers, and financial status referred to in Article 23 (3);
3. A person who submits false construction management records, status of affiliated human resources, and financial status referred to in Article 23-2 (2);
4. A person who fails to assign a construction engineer to a construction site referred to in Article 40 (1).
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 98 (Joint Penalty Provisions)
(1) Where a representative of a corporation, or an agent, employee or other servant of the corporation or an individual commits a violation under Article 93 in connection with the business of the corporation or the individual, not only shall such violator be punished, but also the corporation or the individual shall be punished by a fine not exceeding one billion won: Provided, That the same shall not apply where such corporation or individual has not been negligent in giving considerable attention and supervision concerning the relevant duties to prevent such violation.
(2) Where a representative of a corporation, or an agent, employee or other servant of the corporation or an individual commits a violation under Article 94, 95, 95-2, or 96 or subparagraph 1, 2, or 3 of Article 97 in connection with the business of the corporation or the individual, not only shall such violator be punished, but also the corporation or the individual shall be punished by a fine provided under respective Articles: Provided, That the same shall not apply where such corporation or individual has not been negligent in giving considerable attention and supervision concerning the relevant duties to prevent such violation.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
[This Article was amended by Act No. 10719 promulgated on May 24, 2011, pursuant to the decision on unconstitutionality by the Constitutional Court made on July 30, 2009]
 Article 98-2 (Administrative Fines)
A person who fails to fulfill any order issued under Article 65-2 (3) shall be punished by an administrative fine not exceeding 20 million won.
[This Article Newly Inserted by Act No. 14015, Feb. 3, 2016]
 Article 99 (Administrative Fines)
Any of the following persons shall be punished by an administrative fine not exceeding five million won: <Amended by Act No. 11466, Jun. 1, 2012; Act No. 12012, Aug. 6, 2013; Act No. 13469, Aug. 11, 2015>
1. A constructor or his/her general successor who fails to notify the project owner, etc. of details of a disposition, in violation of Article 14 (2);
2. A constructor (in cases of a subcontract, excluding a constructor who has been awarded the subcontract) who fails to conclude in writing or deliver a contract agreement, in violation of Article 22 (2);
3. A person who fails to notify by the completion date of the relevant works, or gives a false notice to, the project owner of the entries in the construction work ledger referred to in Article 22 (6);
4. A person who fails to give a notice under Article 28-2 (2);
5. A person who fails to give a notice under Article 29 (4);
6. A person who fails to perform his/her duty to supervise subcontractors under Article 29-2 (1) (limited to where it is confirmed that he/she has ordered the subcontractor who is subject to a disposition of suspension of business, etc. pursuant to Article 82 (2) 3 to commit a violation or neglect it);
7. A person who fails to implement a subcontracting plan submitted under Article 31-2 (limited to a subcontracting plan submitted by a person awarded a contract) without good cause;
8. A person who fails to comply with a correction order issued under subparagraph 4 of Article 81 due to his/her failure to pay the subcontract price, etc. referred to in Article 34 (1) by the due date;
9. A person who refuses, evades or interferes with an investigation or inspection or files a false report referred to in Article 49 (1);
10. A person who fails to attend and participate in a conciliation meeting after he/she received notification of the details of an application for conciliation of a dispute from the Committee pursuant to Article 72;
11. A person who fails to comply with an order to make corrections or instructions issued on the ground referred to in subparagraph 3 of Article 81;
12. A person who fails to complete education conducted under Article 9-3 (1);
13. A constructor who fails to request in writing additional or modified works referred to in Article 36-2 (1).
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 100 (Administrative Fines)
Any of the following persons shall be punished by an administrative fine not exceeding five hundred thousand won:
1. A person who fails to file an application for alteration of entries under Article 9-2 (2) within a given period;
2. A construction engineer who deserts a construction site in violation of Article 40 (2);
3. A person who neglects to file a report referred to in Article 49 (1);
4. A person who fails to comply with a correction order or instruction issued on the ground referred to in subparagraph 8 of Article 81.
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 100-2 (Special Cases concerning Application of Provisions on Administrative Fines)
Subparagraph 8 of Article 99 shall not apply to an act with respect to which suspension of business is ordered or a penalty surcharge is imposed in lieu of the suspension of business under Article 82 (1) 5. <Amended by Act No. 11466, Jun. 1, 2012>
[This Article Wholly Amended by Act No. 10719, May 24, 2011]
 Article 101 (Procedures for Imposition and Collection of Administrative Fines)
Administrative fines referred to in Articles 98-2, 99 and 100 shall be imposed and collected by the Minister of Land, Infrastructure and Transport, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14015, Feb. 3, 2016>
[This Article Wholly Amended by Act No. 9875, Dec. 29, 2009]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 1997: Provided, That the provisions of Article 9 shall enter into force on July 1, 1997 and the provisions of Article 87 shall enter into force on January 1, 1998.
Article 2 (Repeal of Other Acts)
Any of the following Acts shall be repealed respectively:
1. The Construction Guarantee Act;
2. The Korea Specialty Contractor Financial Cooperative Act.
Article 3 (General Transitional Measures)
Any disposition issued under the provisions of the previous Construction Business Act, the Construction Guarantee Act or the Korea Specialty Contractor Financial Cooperative Act at the time this Act enters into force shall be deemed issued under the provisions of this Act.
Article 4 (Transitional Measures on Existing Builders, etc. of Gas Facilities)
Any person who has made any of the following registrations as the time of entry into force of this Act shall be deemed to made a registration of the relevant category of business pursuant to Article 11 (1):
1. Registration of a builder referred to in Article 12-2 (1) of the Urban Gas Business Act;
2. Registration of a builder referred to in Article 15-2 of the Safety Control and Business Regulation of Liquefied Petroleum Gas Act;
3. Registration of execution business of specific heat-using machinery and materials referred to in Article 51 of the Energy Use Rationalization Act;
4. Registration of maintenance and management business of structures referred to in Article 19 (1) of the Special Act on the Safety Control and Maintenance of Establishments;
5. Registration of ondol (hypocaust) execution business referred to in Article 56 (2) of the Building Act.
Article 5 (Transitional Measures on Existing Associations)
The construction associations, specialized construction associations and construction work business associations by category of business established pursuant to the former provisions at the time this Act enters into force shall be deemed established pursuant to Article 50 (1), respectively.
Article 6 (Transitional Measures on Existing Mutual Aid Association)
The construction mutual aid association established pursuant to previous the Construction Guarantee Act, and the specialized construction mutual aid association and mutual aid association by category of business established pursuant to the Korea Specialty Contractor Financial Cooperative Act at the time when this Act enters into force shall be deemed established respectively pursuant to Article 54 (1).
Article 7 (Transitional Measures on Construction Business Dispute Conciliation Committee)
The Construction Business Dispute Conciliation Committee already established prior to entry into force of this Act shall be deemed the Central Construction Dispute Conciliation Committee pursuant to Article 69 (1), and the disputes pending under the Construction Business Dispute Conciliation Committee at the time this Act enters into force shall be examined and conciliated by the Central Construction Dispute Conciliation Committee.
Article 8 (Transitional Measures on Penalty Provisions)
In applying the penalty provisions to acts committed prior to entry into force of this Act, the former provision shall apply.
Article 9 (Transitional Measures on Administrative Fine)
In applying the provisions of an administrative fine to any act committed prior to entry into force of this Act, the former provisions shall apply.
Article 10 Omitted.
Article 11 (Relation with Other Acts and Subordinate Statutes)
In case where other Acts and subordinate statutes refer to the previous Construction Business Act, the Construction Guarantee Act and the Korea Specialty Contractor Financial Cooperative Act or any provision thereof at the time this Act enters into force, any of the above stated three Acts or any provision thereof may, if any corresponding provision in this Act, be construed to refer to this Act or the corresponding provisions thereof.
ADDENDA <Act No. 5386, Aug. 28, 1997>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Act No. 5453, Dec. 13, 1997>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Act No. 5965, Apr. 15, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Constructor)
A person who has obtained a license for or completed registration of a general construction business or specialized construction business under the former provisions at the time of the entry into force of this Act shall be deemed to have effected the registration of the relevant business under the amended provisions of Article 9 (1).
Article 3 (Transitional Measures concerning Authorization of Transfer of Construction Business)
The application for the authorization of transfer of construction business, merger of corporations, or succession which is made under the former provisions of Articles 17 and 18 at the time of the entry into force of this Act shall be governed by the former provisions.
Article 4 (Transitional Measures concerning Association)
The association established under the former provisions of Article 50 at the time of the entry into force of this Act shall be deemed the constructors' association established under this Act: Provided, That this shall be subject to the change in its articles of association which is aimed to meet the requirements under this Act within three months after this Act takes effect.
Article 5 (Transitional Measures concerning Administrative Disposition)
(1) An administrative disposition (including the disposition of the imposition of a penalty) against an act committed prior to the enforcement of this Act shall be taken pursuant to the amended provisions of this Act.
(2) The disposition of the suspension of business, imposition of a penalty, revocation of a license, or cancellation of a registration which have been taken pursuant to the former provisions at the time of the entry into force of this Act shall be deemed the disposition of the suspension of business, imposition of a penalty, or cancellation of a registration made under this Act.
Article 6 (Transitional Measures concerning Penalty Provisions)
In the application of the penalty provisions and the provisions of administrative fines to offences committed prior to the enforcement of this Act, the former provisions shall apply.
Article 7 Omitted.
ADDENDA <Act No. 6112, Jan. 12, 2000>
(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation.
(2) (Applicable Cases regarding Restriction on Persons who Carry out Construction Works) The amended provisions of Article 41 shall apply where the application of construction permit or the construction report is made under the Building Act or the approval of plans for a housing construction is applied for under the Housing Construction Promotion Act on and after the date of the entry into force of this Act.
ADDENDA <Act No. 6627, Jan. 26, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2002.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 6640, Jan. 26, 2002>
(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation.
(2) (Transitional Measure for Application for Modifying Entries in Construction Business Registration Certificate or Construction Business Registration Booklet) Where any change has occurred, prior to the enforcement date of this Act, in the entries in a construction business registration certificate or construction business registration booklet, the date of reckoning the time limit for application for changes under the amended provisions of Article 9-2 (2) shall be the enforcement date of this Act.
(3) (Transitional Measure for Penalty Provisions and Administrative Fine) In applying the penalty provisions and administrative fine to the acts committed prior to the enforcement of this Act, the former provisions shall govern.
ADDENDA <Act No. 6802, Dec. 18, 2002>
(1) (Enforcement Date) This Act shall enter into force on March 1, 2003.
(2) (Transitional Measures concerning Penalty Provisions) The application of the penalty provisions to the acts committed prior to the enforcement of this Act shall be governed by the former provisions.
ADDENDA <Act No. 6893, May 29, 2003>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 6938, Jul. 25, 2003>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 7306, Dec. 31, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 22 (5), 28-2 and 34 (3) shall enter into force starting from January 1, 2006, and the amended provisions of Articles 30 (1) and 82 (2) 3 shall enter into force on January 1, 2008.
Article 2 (Applicability concerning Preparation, etc. of Statement of Contract Price Calculation)
The amended provisions of Articles 22 (5), 28-2, 31 and 34 (3) shall apply from the portion of concluding the contract first after the enforcement of this Act.
Article 3 (Applicability concerning Conciliation of Construction Disputes)
The amended provisions of Article 72 (3) shall apply from the portion of applying for conciliation to the Conciliation Committee on Construction Disputes first after the enforcement of this Act.
Article 4 (Transitional Measures concerning Criteria for Administrative Dispositions)
The former provisions shall govern the administrative dispositions (including the disposition on imposing the surcharge) on violating acts before the enforcement of this Act.
Article 5 (Transitional Measures concerning Penalty Provisions, etc.)
The former provisions shall govern the application of penalty provisions and an administrative fine to the acts before the enforcement of this Act.
Article 6 Omitted.
ADDENDA <Act No. 7428, Mar. 31, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 7473, Mar. 31, 2005>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 7513, May 26, 2005>
(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation.
(2) (Transitional Measures concerning Penalty Provisions) The former provisions shall govern the application of penalty provisions to the acts committed prior to the enforcement of this Act.
ADDENDA <Act No. 7697, Nov. 8, 2005>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 41 shall enter into force three months after the date of its promulgation, and the amended provisions of Articles 13 (2), 14 and 83 shall enter into force six months after the date of its promulgation.
(2) (Applicability to Restrictions on Executors of Building Construction Works) The amended provisions of Article 41 shall apply starting from the portion of application for a construction permit or of making a report on a construction under the Building Act, or of applying for an approval of plans for a housing construction business under the Housing Act for the first time after this Act enters into force.
(3) (Applicability to Termination of Construction Business Registration of Constructors Becoming to Fall under Disqualification Reasons for Registration) The amended provisions of subparagraph 3 of Article 83 shall apply starting from the constructors becoming to fall under disqualification reasons for registration of construction business for the first time after this Act enters into force.
(4) (Transitional Measures for Constructors Becoming to Fall under Disqualification Reasons for Registration) The former provisions shall govern the constructors becoming to fall under disqualification reasons for registration before this Act enters into force.
ADDENDA <Act No. 7796, Dec. 29, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2006.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 8477, May 17, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2008: Provided, That the amended provisions of Article 16 (3) 4 shall enter into force on July 1, 2009.
Article 2 (Transitional Measures for Scope of Operation by Constructors and Settlement of Contract Price Calculation)
(1) The amended provisions of Articles 16 (3) 4, 22 (5), 32 (4) (excluding the execution participants under the former provision), 34 (2), 35, subparagraph 5 of Article 81, and Article 87 (2) shall apply to the contracts for construction works (referring to contracts for construction machinery rent or supply contracts in cases of Article 32 (4)) that are concluded on or after the date when this Act enters into force.
(2) The amended provisions of Article 29-2 shall apply to the construction work for which contract is awarded by an project owner to a contractor on or after the date when this Act enters into force.
(3) The amended provisions of Article 31-2 shall apply to the construction work for which tender is publicly announced on or after the date when this Act enters into force (where the tender is not publicly announced, it refers to the construction work for which contract is awarded on or after the date when this Act enters into force).
Article 3 (Special Applicability to Restriction on Concurrent Operation)
(1) Notwithstanding the amended provisions of Article 12, a person registered for the business of performing general construction works may not register on the business involved in the installation of machinery and equipment prescribed by Presidential Decree (hereafter referred to as "business involved in the installation of machinery and equipment" in this paragraph), and a person registered for the business involved in the installation of machinery and equipment may not register on the business of executing general construction works until December 31, 2011.
(2) In applying paragraph (1), an individual who is a constructor may not become a representative of a construction corporation, and a representative of a construction corporation may not register on the construction business in his/her name.
Article 4 (Special Applicability to Appraisal and Public Announcement of Execution Capacity)
Where a general constructor registered under the former provisions registers on the business of executing specialized construction works or a specialized constructor registered under the former provisions registers on the business of executing general construction works after this Act enters into force, the Minister of Construction and Transportation may, in appraising and publicly announcing execution capacity pursuant to Article 23, approve the conversion of the existing performance records which are directly related to the newly registered business into the performance records of the newly registered business within the period and scope prescribed by Ordinance of the Ministry of Construction and Transportation.
Article 5 (Transitional Measures for Constructors)
A person registered for the general construction business or the specialized construction business pursuant to the former provisions before this Act enters into force shall be deemed to have registered on the business of executing the relevant construction works pursuant to the amended provisions of Article 9 (1), and a registration date of construction business under the former provisions or a report date under the former provisions of Article 9 (4) shall be a start date of the period for reporting on the standards for construction business registration under the amended provisions of Article 9 (4).
Article 6 (Transitional Measures for Execution Participants)
(1) The agreements on the participation in work execution that have been concluded before this Act enters into force shall be governed by the former provisions, notwithstanding the amended provisions of subparagraph 13 of Article 2, and Article 29 (2), (4) and (5).
(2) The status of execution participants according to the agreements on the participation in work execution that have been concluded before this Act enters into force shall be governed by the former provisions, notwithstanding the amended provisions of Article 32 (3) and (4).
Article 7 (Transitional Measures for Restriction on Executors of Construction Works)
Where an order for construction work for facilities provided for in each subparagraph of Article 41 (2) has been placed and the contract for such order has been completed pursuant to the former provisions at the time this Act enters into force, such construction work shall be governed by the former provisions, notwithstanding the amended provisions of Article 41 (2).
Article 8 (Transitional Measures for Dispositions, etc. Taken to Specialized Constructors)
Any act, including registration, etc., done by a Mayor/Do governor (including a person who has been commissioned or entrusted with the relevant authority; hereafter the same shall apply in this Article) to specialized constructors, or any act, including reporting, etc., done by specialized constructors to a Mayor/Do governor pursuant to the former provisions before this Act enters into force shall be deemed as the corresponding act done by or to the Minister of Construction and Transportation (including a person who has been commissioned or entrusted with the relevant authority; hereafter the same shall apply in this Article) pursuant to this Act.
Article 9 (Transitional Measures for Criteria for Administrative Dispositions)
The administrative dispositions (including the dispositions to impose administrative fines) on a violation committed before this Act enters into force shall be governed by the former provisions.
Article 10 (Transitional Measures for Penalty Provisions)
The application of penalty provisions (including the provisions concerning administrative fines) to an act committed before this Act enters into force shall be governed by the former provisions.
Article 11 (Relation with Other Acts and Their Subordinate Statutes)
Where the former terms "general construction business", "specialized construction business", "general constructor", and "specialized constructor" and the provisions corresponding thereto are cited in other Acts or their subordinate statutes at the time this Act enters into force, the terms "business of executing general construction works", "business of executing specialized construction works", "constructor registered for the business of executing general construction works" and "constructor registered for the business of executing specialized construction works" and the corresponding provisions in this Act shall be deemed to have been cited.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 8863, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 8971, Mar. 21, 2008>
This Act shall enter into force on the date of its promulgation: Provided, That the amended provision of Article 91 (3) 4-2 shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 9875, Dec. 29, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 98 shall enter into force on the date of its promulgation.
Article 2 (Applicability to Transfer, etc. of Construction Business)
The amended provisions of Article 17 (2) and subparagraph 4 of Article 20 shall apply from the first report on the transfer, etc. of a construction business after this Act enters into force.
Article 3 (Applicability to Issuance, etc. of Payment Guarantees of Subcontract Prices)
The amended provisions of Article 34 (2), (5) and (6) shall apply from the first subcontract concluded after this Act enters into force.
Article 4 (Applicability to Direct Payment of Subcontract Prices)
The amended provisions of Article 35 (1) 1 and 2 and (2) 1 and 1-2 shall apply from the first payment of the subcontract price made after this Act enters into force.
Article 5 (Applicability to Adjustment of Subcontract Prices due to Design Changes, etc.)
The amended provisions of Article 36 (2) shall apply from the first announcement of a tender (referring to the first contract concluded if a tender is not announced) after this Act enters into force.
Article 6 (Applicability to Correction Orders, etc.)
The amended provisions of subparagraph 5-2 of Article 81 shall apply from the first subcontract concluded after this Act enters into force.
Article 7 (Transitional Measures concerning Dispositions of Imposition of Penalty Surcharges)
Dispositions for imposition of a penalty surcharge for violations committed before this Act enters into force shall be governed by the former provisions.
Article 8 (Transitional Measures concerning Penalty Provisions, etc.)
The application of penalty provisions (excluding joint penalty provisions under Article 98) and the imposition of administrative fines for violations committed before this Act enters into force shall be governed by the former provisions.
ADDENDA <Act No. 9999, Feb. 4, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Act No. 10339, Jun. 4, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force one month after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 10719, May 24, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 25 (4) shall enter into force on the date of its promulgation, and the amended provisions of Articles 11, 13 (1) 3 (limited to the provision concerning the amended provisions of Article 82-2 (3) and subparagraphs 8 and 13 of Article 83), 14, 16, 20, 25 (1) through (3), 29, 29-2, 32 (3), 36 (2), 38-2, 54 (5), 57-2, 65-2, and 68-2, subparagraph 4 of Article 81, Articles 82 (1) 4, 82 (2) 3 and 82-2, subparagraphs 8 and 13 of Article 83, Articles 83-2 (3), 84 and 86 (limited to the provision concerning the amended provisions of Article 82-2), subparagraphs 4 and 6 of Article 96, and subparagraphs 4 and 5 of Article 99 shall enter into force one year after the date of its promulgation. <Amended by Act No. 11015, Aug. 4, 2011>
Article 2 (Applicability to General Guarantees of Price Payment)
The amended provisions of Article 68-2 shall apply from the first announcement of a tender (referring to the first contract concluded if a tender is not announced) for construction works after this Act enters into force.
Article 3 (Transitional Measures concerning Rights to Security Deposits)
The extinctive prescription of the right to a security deposit a guarantee creditor has with a mutual-aid association under a guarantee agreement concluded before this Act enters into force shall be governed by the former provisions.
Article 4 (Transitional Measures concerning Dispositions of Administrative Sanctions)
Dispositions of administrative sanctions (including dispositions for imposition of a penalty surcharge) for violations committed before this Act enters into force shall be governed by the former provisions.
Article 5 (Transitional Measures concerning Penalty Provisions)
The application of penalty provisions (including imposition of administrative fines) to violations committed before this Act enters into force shall be governed by the former provisions.
Article 6 Omitted.
ADDENDA <Act No. 11015, Aug. 4, 2011>
(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 1 of Addenda to the partially amended Framework Act on the Construction Industry (Act No. 10719), shall enter into force on the date of its promulgation.
(2) (Applicability to Restrictions on Executors of Construction Works) The amended provisions of Article 41 shall apply from the first application for a building permit or first report on a building under the Building Act, or the first application for approval of a housing construction project plan under the Housing Act.
ADDENDUM <Act No. 11181, Jan. 17, 2012>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 11466, Jun. 1, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 69 (2) and 69-2 (1) 2 shall enter into force on July 1, 2012.
Article 2 (Applicability to Notification of Subcontracts)
The amended provisions of Articles 29, 34 (4) and 37 (1) shall apply from the first construction works for which a contractor is awarded a contract by an project owner after this Act enters into force.
Article 3 (Transitional Measures concerning Grounds for Disqualification of Persons whose Registration has been Cancelled due to False Reports)
Where registration has been cancelled under subparagraph 2 of Article 83 before this Act enters into force shall be governed by the former provisions.
Article 4 (Transitional Measures concerning Administrative Fines)
The imposition of an administrative fine for a violation committed before this Act enters into force shall be governed by the former provisions.
ADDENDA <Act No. 11576, Dec. 18, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Guarantee of Price Payment for Renting Construction Machinery)
The amended provisions of Article 68-3 shall apply from the first contract concluded between a constructor and a construction machinery rental operator after this Act enters into force.
Article 3 (Applicability to Dispositions of Administrative Sanctions)
The amended provisions of Articles 81 and 82 shall apply from the first disposition of administrative sanction imposed after this Act enters into force.
Article 4 (Applicability to Exclusion Period for Dispositions of Administrative Sanctions)
(1) The amended provisions of Article 84-2 shall apply from the first act of violation committed or the first expiry of a defect liability period after this Act enters into force.
(2) Concerning cases of an act of violation committed or a defect liability period expiring before this Act enters into force, no disposition of administrative sanctions shall be imposed where the enforcement date of this Act elapses the end date of the exclusion period provided for in the amended provisions of Article 84-2.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 11794, May 22, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 26 Omitted.
ADDENDA <Act No. 12012, Aug. 6, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Payment Guarantee of Contract Prices, etc.)
The amended provisions of Article 22-2 shall apply, beginning with construction works for which the first contract is concluded after this Act enters into force.
Article 3 (Applicability to Imposition of Administrative Fines due to Non-attendance of or Non-participation in Dispute Conciliation Meetings)
Administrative sanctions under the amended provision of subparagraph 10 of Article 99 shall apply, beginning with cases where a person fails to attend and participate in a conciliation meeting after he/she receives notification of the details of an application for conciliation of a dispute from the Committee pursuant to the amended provisions of Article 72 after this Act enters into force.
ADDENDA <Act No. 12580, May 14, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Repeated Failure to Meet Criteria for Registration)
The amended provisions of Article 13 shall apply, beginning with construction business of which the first application for registration is filed after this Act enters into force.
Article 3 (Applicability to Defect Liability, etc. of Subcontractors)
The amended provisions of Article 28 shall apply, beginning with construction work for which a contractor enters into the first subcontract with a subcontractor after this Act enters into force.
Article 4 (Applicability to Disclosure, etc. of Data on Contracts of Subcontract Work)
The amended provisions of Article 31-3 shall apply, beginning with construction works for which a project owner enters into the first contract with a contractor after this Act enters into force.
Article 5 (Applicability to Direct Payment, etc. of Construction Machinery Rental Price and Subcontract Price)
The amended provisions of Articles 32 (4) and 35 shall apply, beginning with construction works for which a project owner enters into the first contract with a contractor after this Act enters into force.
Article 6 (Applicability to Cancellation, etc. of Registration of Construction Business)
The amended provisions of subparagraph 12 of Article 83 shall apply, beginning with cases where the head of the competent tax office cancels registration pursuant to Article 8 (7) of the Value-Added Tax Act after this Act enters into force.
Article 7 (Applicability to Publication of Lists of Constructors Who Make Delayed Payments Habitually)
The amended provision of Article 86-4 (1) shall apply, beginning with cases where a contractor violates Article 34 (1) (including cases where it is applied mutatis mutandis in Article 32 (4)) for the first time after this Act enters into force.
Article 8 (Transitional Measures concerning Incompetent Persons, etc.)
An adult placed under the protection of a legal guardian or quasi-incompetent person placed under the protection of a legal guardian under the amended provisions of Articles 13 (1) 2 and 55-2 (3) 2 and subparagraph 2 of Article 70-2 shall be deemed to include a person in whose case the effects of declaration of incompetency or quasi-incompetency under Article 2 of Addenda of the partly amended Civil Act, Act No. 10429, are maintained.
ADDENDA <Act No. 12591, May 20, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 13469, Aug. 11, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 28 (3) shall enter into force one year after the date of its promulgation
Article 2 (Applicability to Completion of Education Upon Registration of New Construction Business)
The amended provisions of Article 9-3 (1) shall apply, beginning with the first case where a registration certificate of construction business is received after this Act enters into force.
Article 3 (Applicability to Defect Liability of Contractor, etc. of Construction Works)
The amended provisions of Article 28 (3) shall apply, beginning with the first case where a contract agreement is concluded after the same amended provisions enters into force.
Article 4 (Applicability to Performance Bond, etc. of Subcontract Agreement)
The amended provisions of Article 34-2 shall apply, beginning with the first case where a subcontract agreement is concluded between a contractor and a subcontractor after this Act enters into force.
Article 5 (Applicability to Written Confirmation on Additional or Modified Works)
The amended provisions of Article 36-2 shall apply, beginning with the first case where a subcontract agreement is concluded between a contractor and a subcontractor after this Act enters into force.
Article 6 (Applicability to Mitigation of Suspension of Business, etc. Based on Completion of Education on Construction Business)
The mitigation of suspension of business, etc. under the amended provisions of the latter part of Article 84 shall apply, beginning with the first case where a disposition for suspension of business, etc. is received after this Act enters into force.
ADDENDA <Act No. 14015, Feb. 3, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 54-2 shall enter into force three months after the date of its promulgation, and the amended provisions of Articles 68-2 and 68-3 (2), subparagraph 4 of Article 81, and Article 82 (1) 8 one year after the date of its promulgation, and the amended provisions of Articles 9 (4) and 49 (7), subparagraph 2 of Article 81, Articles 82 (1) 5, 83, and 91 (3) two years from the date of its promulgation.
Article 2 (Applicability to Reports on Standards for Registration)
The amended provisions of Article 9 (4) shall apply, beginning with the first person obligated to file a report on the standards for registration after the same amended provisions enters into force.
Article 3 (Applicability to Assumption of Contracts, etc.)
The amended provisions of Articles 22-3, 28-2, 34 (7), 38-3, and 68-3 (6) shall apply, beginning with the first case where a contract agreement is concluded after this Act enters into force.
Article 4 (Applicability to Submission of Subcontract Plans)
The amended provisions of Article 31-2 (1) shall apply, beginning with the first case where a constructor intends to be awarded a contract for construction works after this Act enters into force.
Article 5 (Applicability to Restrictions on Executors of Construction Works)
The amended provisions of the main sentence of Article 41 (1) shall apply, beginning with the first case where an application for a building permit or a building report is filed under the Building Act or where an application for permission for activities of collective housing or an activity report is filed under the Housing Act.
Article 6 (Applicability to Abolition of General Guarantees of Price Payment)
The amended provisions of Articles 68-2 and 68-3 (2) shall apply, beginning with the first case where a contract agreement is concluded after the same amended provisions enters into force.
Article 7 (Transitional Measures concerning Administrative Dispositions)
Administrative dispositions against any act committed before this Act enters into force shall be governed by the former provisions.
ADDENDA <Act No. 14545, Jan. 17, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 15 Omitted.
ADDENDA <Act No. 14708, Mar. 21, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Disqualification for Registration of Construction Business)
The amended provisions of Article 13 (1) 3 (a) shall apply, beginning with the first case where the registration of construction business is cancelled on the ground prescribed in subparagraph 5 of Article 83 after this Act enters into force.
Article 3 (Applicability to Direct Performance of Construction Works)
The amended provisions of Article 28-2 (4) and (5) shall apply, beginning with the first case where a contract for construction works is concluded after this Act enters into force.
Article 4 (Applicability to Posting of Construction Signs)
The amended provisions of Article 42 (2) shall apply, beginning with the first construction works completed after this Act enters into force.
Article 5 (Transitional Measures concerning Dispositions of Administrative Sanctions)
Disposition of administrative sanction for any violation committed before this Act enters into force shall be governed by the former provisions.
Article 6 (Transitional Measures concerning Penalty Provisions)
The application of penalty provisions against any act committed before this Act enters into force shall be governed by the former provisions.
ADDENDUM <Act No. 14849, Aug. 9, 2017>
This Act shall enter into force six months after the date of its promulgation.