Law Viewer

Back Home

INFORMATION AND COMMUNICATIONS CONSTRUCTION BUSINESS ACT

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

Amended by Act No. 5791, Feb. 5, 1999

Act No. 6358, Jan. 16, 2001

Act No. 6627, Jan. 26, 2002

Act No. 7140, Jan. 29, 2004

Act No. 7265, Dec. 30, 2004

Act No. 7817, Dec. 30, 2005

Act No. 8867, Feb. 29, 2008

Act No. 9480, Mar. 5, 2009

Act No. 9553, Mar. 25, 2009

Act No. 9708, May 22, 2009

Act No. 10140, Mar. 17, 2010

Act No. 10250, Apr. 12, 2010

Act No. 11202, Jan. 17, 2012

Act No. 11690, Mar. 23, 2013

Act No. 11998, Aug. 6, 2013

Act No. 12680, May 28, 2014

Act No. 12876, Dec. 30, 2014

Act No. 13589, Dec. 22, 2015

Act No. 14839, Jul. 26, 2017

Act No. 15375, Feb. 21, 2018

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to provide for basic matters necessary for the examination, design, execution, supervision, maintenance and management, technology management, etc. of information and communications construction works and matters necessary for registering information and communications construction businesses, making contracts for information and communications construction projects, etc., in order to promote the proper execution of information and communications construction works and the sound development of information and communications construction businesses.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 2 (Definitions)
The terms used in this Act shall be defined as follows: <Amended by Act No. 10250, Apr. 12, 2010; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
1. The term "information and communications facility" means machinery, equipment, cables, and other necessary facilities that store, control, process, send or receive data in the form of cipher, text, sound, visual image, etc. through wired or wireless means, light, or other electronic methods;
2. The term "information and communications construction projects" means works for the installation, maintenance and repair of information and communications facilities, and other works appurtenant thereto, which are prescribed by Presidential Decree;
3. The term "information and communications construction business" means a business of performing information and communications construction works which are governed by this Act (hereinafter referred to as "construction works") under the title of contracting business or whatever;
4. The term "information and communications construction business operator" means a person running an information and communications construction business (hereinafter referred to as "construction business") registered pursuant to this Act;
5. The term "service" means providing labor in terms of survey, design, supervision, business management, maintenance and management, etc. as entrusted by another person in connection with construction projects;
6. The term "service business" means providing services for business purposes;
7. The term "service provider" means a person who has registered as an engineering business operator pursuant to Article 21 (1) of the Engineering Industry Promotion Act or registered as the founder of a professional engineers' office pursuant to Article 6 of the Professional Engineers Act and runs a service business with qualifications for information and communications-related areas determined by Presidential Decree, such as communications, electronics, and data processing;
8. The term "design" means an act of preparing plans, drawings, specifications, detailed statements of construction costs, technical calculation statements, and documents related thereto (hereinafter referred to as "design documents and drawings") for construction projects (excluding the construction, etc. of buildings under Article 4 of the Certified Architects Act);
9. The term "supervision" means service providers' overseeing the performance of construction works (excluding the construction of buildings, etc. under Article 4 of the Certified Architects Act) to be in compliance with design documents and drawings and relevant regulations on the commission of project owners, and vicariously exercising the authority of project owners through giving directions, etc. in terms of quality control, performance management, and safety control;
10. The term "supervisor" means a person having techniques or skills for the supervision of construction works (excluding the construction of buildings, etc. under Article 4 of the Certified Architects Act) and recognized by the Minister of Science and ICT pursuant to Article 8;
11. The term "project owner" means a person contracting out construction projects (including services; hereafter the same shall apply in this Article) to construction business operators (including service providers: hereafter the same shall apply in this Article): Provided, That any person who subcontracts to another person the projects for which they are contracted as a contractor shall be excluded;
12. The term "contracting" means making a contract to the effect that, no matter whether it is an original contract, subcontract, entrusted work or in whatever name, the construction business operator shall complete the construction project, and the project owner shall pay a price for the result of the work;
13. The term "subcontract" means a contract that a contractor makes with a third person for part of the construction project for which he/she is contracted;
14. The term "contractor" means a construction business operator who is awarded a contract for a construction project by a project owner;
15. The term "subcontractor" means a construction business operator who is given a subcontract for a construction project by a contractor;
16. The term "information and communications engineer" means those who have acquired technical qualifications in information and communications-related areas pursuant to the National Technical Qualifications Act and those who have techniques or skills for information and communications facilities and are recognized by the Minister of Science and ICT pursuant to Article 39.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 3 (Restrictions on Construction Projects)
Any person who is not an information and communications construction business operator (hereinafter referred to as "construction business operator") shall not be given a contract for, or perform, a construction project: Provided, That the same shall not apply to cases falling under any of the following subparagraphs: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
1. Where a key communications business operator who has obtained permission from the Minister of Science and ICT pursuant to Article 5 of the Telecommunications Business Act performs a construction work to provide permitted services;
2. Where a minor construction project determined by Presidential Decree is contracted out or performed;
3. Where the installation of cable tunnels or the installation of underground conduits for information and communications to be installed concurrently with road construction is contracted out or performed as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 4 (Construction Business Operators' Duty of Good Faith)
To secure the quality and safety of information and communications facilities, every construction business operator shall observe statutes pertaining to construction works and services and conduct his/her business in conformity with design documents and drawings, etc. in good faith.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 5 (Measures for Foreign Construction Business Operators)
Where necessary to register a construction business for foreigners or foreign corporations, the Minister of Science and ICT may determine standards for the recognition of qualifications, academic backgrounds, work experience, etc. which are achieved in foreign countries with respect to the construction business. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
CHAPTER II DESIGN AND SUPERVISION OF CONSTRUCTION PROJECT
 Article 6 (Compliance with Technical Standards)
(1) Any person that designs construction project shall perform his/her work in compliance with the technical standards determined by Presidential Decree.
(2) Every supervisor shall supervise construction work in conformity with design documents and drawings and relevant regulations.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 7 (Design, etc.)
(1) Every project owner shall place orders for the design of construction project to service providers.
(2) Any person that drafts design documents and drawings pursuant to paragraph (1) shall write his/her autograph or put his/her name and affix his/her seal to such design documents and drawings.
(3) The scope of construction project to be designed pursuant to paragraphs (1) and (2), preserving of design documents and drawings, and other necessary matters shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 8 (Supervision, etc.)
(1) Every project owner shall place orders for the construction supervision to service providers.
(2) Any service provider that has received an order to supervise construction pursuant to paragraph (1) shall have supervisors supervise the construction work.
(3) Any person that intends to be recognized as a supervisor shall file an application for qualification to the Minister of Science and ICT as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(4) When an applicant under paragraph (3) meets the supervisors' qualifications determined by Presidential Decree, the Minister of Science and ICT shall recognize him/her as a supervisor. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(5) Where the Minister of Science and ICT recognizes an applicant under paragraph (3) as a supervisor, he/she shall issue a supervisor's license (hereinafter referred to as "license") to the supervisor. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(6) No supervisor shall allow another person to conduct supervisor's duties in his/her name or lend his/her license to another person.
(7) The scope of construction work to be supervised pursuant to paragraph (1), scope of duties and criteria for placement of supervisors pursuant to paragraph (2), and other matters necessary for supervision shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 9 (Supervisor's Order, etc. for Suspension of Construction)
(1) When a construction business operator performs construction works in discord with design documents and drawings and relevant regulations, any supervisor may issue an order for the reconstruction, suspension of construction, or other necessary measures, with the consent of the project owner.
(2) Any construction business operator that receives an order from a supervisor to repeat or suspend a construction work or take other necessary measures pursuant to paragraph (1) shall comply with such order unless any extraordinary circumstance exists.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 10 (Corrective Measures against Supervisors)
Where there is a concern over fraudulent work because of a supervisor's failure to carry out his/her duties in good faith, any project owner may take necessary measures against the supervisor, such as an order for correction as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 11 (Notification of Results of Supervision)
Any service provider that receives an order for the supervision of a construction project pursuant to Article 8 (1) shall, upon the completion of the supervision of the project, notify the results of the supervision to the project owner in writing, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 12 (Restrictions on Supervision by Construction Business Operators)
Where a construction business operator and a service provider are the same person or are in a relationship falling under any of the following subparagraphs, they shall not perform the construction and supervising works together for the projects concerned:
1. Where they are in a relationship between a parent company and a subsidiary prescribed by Presidential Decree;
2. Where they are in a relationship between a corporation and an official of the corporation;
3. Where they have a degree of kinship under Article 777 of the Civil Act.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 12-2 (Fostering, etc. of Service Business)
(1) Where necessary to enhance technological levels of services and promote the sound development of service businesses, the Minister of Science and ICT may establish and execute policies for fostering and supporting service businesses that are suitable for the characteristics of construction project, in consultation with the heads of the relevant central administrative agencies. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(2) Whee necessary to formulate policies pursuant to paragraph (1), the Minister of Science and ICT may demand data about the current conditions of service businesses, etc. from the heads of the relevant central administrative agencies. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
CHAPTER III PERFORMANCE OF CONSTRUCTION WORK
SECTION 1 Registration, etc. of Construction Business
 Article 13 Deleted. <by Act No. 5791, Feb. 5, 1999>
 Article 14 (Registration, etc. of Construction Businesses)
(1) Any person that intends to operate a construction business shall have it registered with the relevant Special Metropolitan City Mayor, Metropolitan City Mayor, Metropolitan Autonomous City Mayor, Do Governor, or Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor"), as prescribed by Presidential Decree. <Amended by Act No. 12680, May 28, 2014>
(2) Deleted. <by Act No. 12876, Dec. 30, 2014>
(3) Upon receipt of the registration under paragraph (1), a Mayor/Do Governor shall issue a registration certificate and registration pocket book.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 15 (Criteria for Registration)
A Mayor/Do Governor, in receipt of an application for registration under Article 14 (1), shall grant the registration, except for any of the following cases: <Amended by Act No. 14839, Jul. 26, 2017>
1. Where an applicant has failed to be equipped with the technical ability, capital (for individuals, the amount of asset valuation), or an office;
2. Where an applicant has failed to submit a certificate issued by a financial company, etc. designated by the Minister of Science and ICT or by the Information and Communications Financial Cooperative under Article 45 to certify the fact that the applicant has received a cash deposit or contribution which is not less than the amount prescribed by Presidential Decree;
3. Where an applicant for the registration falls under any subparagraph of Article 16;
4. Other cases that are in violation of restrictions under this Act or any other statute.
[This Article Wholly Amended by Act No. 12680, May 28, 2014]
 Article 16 (Grounds for Disqualification of Registration)
No person that falls under any of the following subparagraphs shall apply for registration of a construction business: <Amended by Act No. 12680, May 28, 2014; Act No. 13589, Dec. 22, 2015; Act No. 15375, Feb. 21, 2018>
1. A person under adult guardianship or a person under limited guardianship;
2. A bankrupt that has not yet been reinstated;
3. A person that was sentenced to imprisonment without labor or to a heavier punishment for violating this Act and for whom three years have not passed since the execution of such punishment was completed (including cases where the execution is deemed to have been completed) or exempted, or a person who is under the suspension of the execution of such punishment as declared by a court;
4. Deleted; <by Act No. 11202, Jan. 17, 2012>
5. A person for whom two years have not passed since his/her registration was cancelled pursuant to this Act: Provided, That a case falling under any of the following items shall be excluded:
(a) Where a construction business operator (referring to an executive officer where a construction business operator is a corporation) has its registration cancelled in accordance with Article 66 (1) 5, due to falling under subparagraph 1 or 2;
(b) Where the registration is cancelled in accordance with Article 66 (1) 15;
6. A person that was sentenced to imprisonment without labor or a heavier punishment for committing a crime prescribed in the National Security Act or Chapter I or II of Part II of the Criminal Act and for whom three years have not passed since the execution of such punishment was completed (including cases where the execution is deemed to have been completed) or exempted, or a person who is under the suspension of the execution of such punishment as declared by a court;
7. A corporation with an official falling under any of subparagraphs 1 through 6.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 17 (Transfer, etc. of Construction Business)
(1) In cases of falling under any of the following subparagraphs, any construction business operator shall report such fact to the Mayor/Do Governor concerned under the conditions prescribed by Presidential Decree:
1. Where he/she intends to transfer his/her construction business (including cases where a corporation which is a construction business operator transfers its construction business to a corporation to be established or to survive the merger or division-merger; hereinafter the same shall apply);
2. Where corporations that are construction business operators intend to merge with one another or where a corporation that is a construction business operator and a corporation that is not a construction business operator intend to merge with each other.
(2) When a report is made on the transfer of a construction business as referred to in paragraph (1), the person that acquires the construction business shall succeed to the status of the person transferring the construction business as a construction business operator, and when a report is made on the merger of corporations, the corporation to be established or to survive the merger shall succeed to the status of the corporation that ceases to exist as a construction business operator.
(3) Articles 15 and 16 shall apply mutatis mutandis to the report referred to in paragraph (1).
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 18 Deleted. <by Act No. 5791, Feb. 5, 1999>
 Article 19 (Details, etc. of Transfer of Construction Business)
(1) Any person that intends to transfer a construction business shall transfer all the rights and duties in each of the following subparagraphs in connection with the construction business:
1. Rights and duties related to the contracts of construction under work;
2. During the warranty period of completed construction, the rights and duties for repairing defects thereof.
(2) In the case of paragraph (1), if any construction is under work, no construction business shall be transferred, unless the consent of the project owner of such project is obtained or the contract of such project is cancelled.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 20 Deleted. <by Act No. 5791, Feb. 5, 1999>
 Article 21 (Succession to Construction Business)
Where a construction business operator dies, his/her successor shall succeed to all the rights and duties of the construction business operator under this Act.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 22 (Continuation of Projects by Construction Business Operators Whose Registration is Cancelled, etc.)
(1) Any construction business operator subject to a disposition of suspension of business or cancellation of registration as referred to in Article 66 (1) and his/her general successor may continue to perform the construction work for which they concluded contracts or which they commenced after obtaining permission, authorization, etc. pursuant to relevant statutes before they became subject to such disposition. <Amended by Act No. 15375, Feb. 21, 2018>
(2) Any business operator subject to a disposition of suspension of business or cancellation of registration as referred to in Article 66 (1) and his/her general successor shall promptly notify the project owner of the relevant project of the details of such disposition. <Amended by Act No. 15375, Feb. 21, 2018>
(3) Where a construction business operator continues to perform a project pursuant to paragraph (1) even after the registration of his/her construction business is cancelled, he/she shall be deemed a construction business operator until the project is completed.
(4) Any project owner may, unless any extraordinary circumstance exists, cancel a contract only within 30 days from the date on which he/she receives a notice referred to in paragraph (2) from construction business operators concerned or he/she becomes aware of the fact that such disposition is imposed.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 23 (Construction Business Operator's Obligation to Report)
(1) Where there is change in trade name, title, or other matters determined by Presidential Decree, any construction business operator shall make a report (including reports filed through the information and communications network under Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, Etc. hereafter the same shall apply in paragraph (2)) on it to the Mayor/Do Governor concerned as prescribed by Presidential Decree.
(2) Any person that falls under any of the following subparagraphs shall make a report on closure of business to the Mayor/Do Governor concerned: Provided, That this shall not apply where a construction business operator reports his/her/its business closure to the head of a tax office in accordance with Article 8 (6) of the Value-Added Tax Act or the head of the competent tax office revokes his/her/its business registration in accordance with paragraph (7) of the same Article: <Amended by Act No. 13589, Dec. 22, 2015>
1. Where a construction business operator goes bankrupt, the trustee in bankruptcy;
2. Where a corporation is dissolved for reasons other than merger or bankruptcy, the liquidator thereof;
3. Where a construction business operator dies, but his/her successor does not succeed to the construction business, the successor thereof;
4. Where a construction business closes down for reasons other than the reasons under subparagraphs 1 through 3, the individual or the representative of the corporation who was the construction business operator.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 24 (Prohibition of Lending Certificate of Registration of Construction Business, etc.)
No construction business operator shall allow any other person to contract or perform a construction work by using his/her name or trade name or lend his/her registration certificate or registration pocket book to another person.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 24-2 (Formulation, etc. of Policies for Fostering Construction Business)
(1) Where necessary for the sound development of construction business, the Minister of Science and ICT may formulate and execute policies necessary therefor. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(2) When deemed necessary for the balanced fostering of construction business, the Minister of Science and ICT may request the State, local governments, or public institutions under Article 4 of the Act on the Management of Public Institutions placing orders for construction projects to expand opportunities for the small-and-medium-sized construction business operators to participate therein or to take other necessary measures. In such cases, the State, local governments, and public institutions shall actively cooperate therewith, except under extenuating circumstances. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(3) and (4) Deleted. <by Act No. 13589, Dec. 22, 2015>
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 24-3 (Calculation Standards for Expenses for Information and Communications Construction)
(1) The Minister of Science and ICT may establish calculation standards for construction expenses, such as the standard market unit price and the standard estimate for the purpose of calculating appropriate construction expenses so that persons placing an order may use such calculation standards. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The Minister of Science and ICT may, in oder to establish the calculation standards of construction expenses under paragraph (1), research and investigate the calculation standards of construction cost, the actual situation of the construction business, and other related matters. <Amended by Act No. 14839, Jul. 26, 2017>
(3) The Minister of Science and ICT may, if necessary for conducting the research and investigation under paragraph (2), entrust such research and investigation to an institution or organization satisfying the requirements prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017>
(4) The Minister of Science and ICT may subsidize expenses necessary for the research and investigation to the entities entrusted with the research and investigation in accordance with paragraph (3) within the budgetary limits. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. Act No. 13589, Dec. 22, 2015]
SECTION 2 Contract and Subcontract
 Article 25 (Separation of Contract)
Every construction work shall be contracted separately from construction projects under the Framework Act on the Construction Industry, electrical works under the Electrical Construction Business Act, or other projects: Provided, That the same shall not apply to cases determined by Presidential Decree, where it is difficult to contract separately due to the nature of projects or technological management.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 26 (Principles, etc. of Contracting Projects)
(1) Each party to a contract for a project shall enter into the contract on an equal footing, in fairness and based on his/her consent, and shall perform the contract faithfully and in good faith.
(2) Each party to a contract for a project shall, when concluding the contract, indicate a contract amount, period of the project, and other matters determined by Presidential Decree in a written contract and shall give the written contract that he/she signed and sealed to the other party for keeping.
(3) No contractor shall force a subcontractor to engage in any act that is deemed unfavorable to the subcontractor, such as designating places to purchase materials in connection with the performance of subcontracted projects.
(4) Except as otherwise provided for in this Act, the corresponding provisions of the Fair Transactions in Subcontracting Act shall apply mutatis mutandis to subcontracting.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 27 (Management of Information, etc. on Construction Business)
(1) The Minister of Science and ICT shall manage the information on construction business, including the supply and demand of materials and manpower which are necessary for construction, as well as on the construction business operator, in terms of his/her performance by project type, capital, technological capability, etc., in an integrated manner. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(2) The Minister of Science and ICT shall, upon receipt of an application from a construction business operator, assess and publish the construction business operator's ability to perform projects, based on his/her records of construction work, capital, technological capability, reliability of quality of work, level of quality control, etc., as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(3) Any construction business operator that applies for the performance capability assessment referred to in paragraph (2) shall submit documents on records of construction work, capital, and other matters determined by Presidential Decree to the Minister of Science and ICT as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(4) The Minister of Science and ICT may, when a project owner, etc. requests for the provision of the information managed in an integrated manner pursuant to paragraph (1), provide the relevant information. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(5) The details of information that can be offered pursuant to paragraph (4), the method of and procedure for the provision thereof, and other necessary matters shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 28 Deleted. <by Act No. 5791, Feb. 5, 1999>
 Article 29 (Contracting Projects)
Each project owner shall give contracts for projects to construction business operators: Provided, That the same shall not apply to cases falling under any subparagraph of Article 3.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 30 (Prohibition of Imposing Additional Restrictions on Qualification of Contractors)
Except as otherwise provided for in other Acts, the State, local governments, or public institutions under Article 4 of the Act on the Management of Public Institutions shall neither have construction business operators make registration in connection with the qualification of contractors nor put restrictions on them in connection with receiving contracts for reasons other than those provided for in this Act.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 31 (Restrictions, etc. on Subcontracting)
(1) No construction business operator shall give a subcontract in excess of 50% of a contracted project to another construction business operator: Provided, That in any of the following cases, he/she may give a subcontract in excess of 50% to the extent that it does not subcontract the whole project: <Amended by Act No. 12680, May 28, 2014>
1. Where the project owner deems it necessary in order to enhance the quality of work or capability to perform;
2. Where a construction business operator that supplies materials used for a project carries out a project to install the materials that he/she supplies.
(2) No subcontractor shall further subcontract his/her subcontracted projects to other construction business operators: Provided, That the same shall not apply where a portion equivalent to not more than 50% of a subcontract amount is further subcontracted within the scope determined by Presidential Decree.
(3) Where a construction business operator intends to subcontract any part of a contracted project to another construction business operator or a subcontractor intends to further subcontract any part of a subcontracted project to other construction business operator, he/she shall obtain the written approval for the relevant project owner.
(4) The details, scopes, etc. of the projects that construction business operators are allowed to subcontract pursuant to paragraph (1) shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 31-2 (Status of Subcontractor, etc.)
(1) When performing a subcontracted project, every subcontractor shall assume the same responsibilities as those of a contractor with regard to the project owner.
(2) Paragraph (1) shall have no effect on the legal relations between a contractor and a subcontractor.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 31-3 (Listening to Opinions of Subcontractors)
Every contractor, when performing a contracted project via a subcontractor, shall listen to the opinions of the subcontractor in advance on the methods and process of performing the subcontracted project and other matters which are deemed necessary.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 31-4 (Payment, etc. of Subcontract Price)
(1) Every contractor shall, when receiving payment for the completion of a contracted project from the project owner, pay to the subcontractor in cash the full amount of the subcontract price and, when receiving progress payment, an amount equivalent to the portion that the subcontractor performed, within 15 days from the date of receipt of the respective payment (where a contractor receives a note for the contract price from the project owner, referring to the due date of the note).
(2) When receiving an advance payment from the project owner, every contractor shall pay an advance payment to the subcontractor to enable the subcontractor to purchase materials, employ laborers, and prepare other things necessary for the commencement of the subcontracted project, according to the details and ratio of the advance payment he/she has received. In such cases, the contractor may demand guarantee from the subcontractor in preparation for cases where the subcontractor becomes liable to return the advance payment.
(3) When a contract price is adjusted after giving a subcontract because of design change, price fluctuation, etc., every contractor may pay the subcontractor a subcontract price increased or decreased in proportion to the adjustment of contract price.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 31-5 (Direct Payment of Subcontract Price)
(1) In cases of falling under any of the following subparagraphs, every project owner may pay directly to the subcontractor a subcontract price equivalent to the portion performed by a subcontractor. In such cases, the project owner's liability to pay a price to the contractor shall be considered to have extinguished within the limit of the subcontract price paid to the subcontractor:
1. Where an agreement is reached between the project owner and the contractor, explicitly expressing the intention that the subcontract price might be paid directly to the subcontractor as well as the method of and procedure for such payment;
2. Where a subcontractor obtains a final and conclusive court decision against the contractor, ordering payment of the subcontract price for the portion that he/she performed;
3. Where the project owner recognizes that the contractor has an evident cause that makes the contractor unable to pay the subcontract price due to suspension of payment, bankruptcy, etc.
(2) Any contractor that falls under paragraph (1) 3 may, when he/she deems that he/she might suffer damage, the cause of which is attributable to a subcontractor, request the project owner to suspend direct payment of the subcontract price, stating the grounds therefor.
(3) Where a subcontract price is directly paid pursuant to paragraph (1) 3, the method of and procedure for the payment shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 31-6 (Evaluation of Appropriateness, etc. of Subcontract Agreements)
(1) In any of the following cases, a project owner may evaluate the subcontractor's ability to perform projects or the contents of the subcontract agreement:
1. Where a subcontractor's ability to perform projects is noticeably deficient, considering the scale, specialty, etc. of the project;
2. Where the subcontract price is below the amount corresponding to the ratio prescribed by Presidential Decree.
(2) Where a project owner deems, as a result of the evaluation under paragraph (1), the subcontractor's ability to perform projects or the contents of the subcontract agreement are not appropriate, he/she may request the contractor to replace the subcontractor or to amend the contents of the subcontract agreement, specifying the reasons therefor.
(3) Where a contractor is likely to significantly influence the result of the project by failing to comply with the request referred to in paragraph (2) without any justifiable ground, the project owner may cancel the construction contract of the relevant project.
(4) Criteria for the evaluation of appropriateness of a subcontract agreement, method of evaluation thereof, procedures for the replacement of subcontractor or the amendment of the contents of the subcontract agreement, and other necessary matters under paragraphs (1) through (3) shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 12680, May 28, 2014]
 Article 32 (Request for Replacement of Subcontractor)
(1) Where a subcontractor is deemed to perform a project in violation of relevant statutes or perform a project in conflict with design documents and drawings, any project owner may request the contractor to replace the subcontractor, stating the grounds therefor, as prescribed by Presidential Decree.
(2) Where a project owner deems that the contractor's failure to comply with the request referred to in paragraph (1) without any justifiable ground is feared to affect the result of the project significantly, he/she may cancel the contract for the project.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
SECTION 3 Management of Execution of Construction Projects and Pre-Use Inspection
 Article 33 (Placement of Information and Communications Engineers)
(1) Every construction business operator shall place one or more information and communications engineers at the construction site, as prescribed by Presidential Decree, for the management of performance of construction and other technical management and inform the project owner thereof.
(2) No information and communications engineer placed pursuant to paragraph (1) shall leave the construction site without the consent of the project owner concerned, unless there are justifiable grounds.
(3) Where a project owner deems that an information and communications engineer placed pursuant to paragraph (1) considerably lacks the ability to carry out his/her duties, the project owner may request the contractor to replace the information and communications engineer. In such cases, the contractor shall comply with such request unless he/she has a justifiable ground not to do so.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 34 Deleted. <by Act No. 5791, Feb. 5, 1999>
 Article 35 (Construction Business Operator's Liability for Compensation)
(1) Where inflicting loss on another person as a result of unfaithfully managing the performance of a project by intention or by negligence, every construction business operator shall be liable to compensate for the loss.
(2) Where the loss referred to in paragraph (1) is caused by intention or gross negligence on the part of the project owner, every construction business operator may exercise the rights to demand a reimbursement against the project owner.
(3) Where a subcontractor inflicts a loss to another person as a result of unfaithfully managing the performance of a subcontracted project by intention or by negligence, every contractor shall be liable to compensate for the loss jointly with the subcontractor.
(4) Every contractor may, when compensating a loss pursuant to paragraph (3), exercise the rights to demand a reimbursement against the subcontractor liable for the compensation.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 36 (Pre-Use Inspection, etc. of Projects)
(1) Any person that places an order for a project determined by Presidential Decree (including construction business operators who perform their projects directly or those who perform their projects directly pursuant to subparagraph 2 of Article 3; hereinafter referred to as "project owner, etc." in this Article) shall submit his/her design drawings to the Metropolitan Autonomous City Mayor, the Self-Governing Province Governor, or the head of a Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply), to verify whether they conform with the technical standards referred to in Article 6, before commencing the relevant project, and, when completing the project, shall use information and communications facilities which are subject to a pre-use inspection by the Metropolitan Autonomous City Mayor, the Special Self-Governing Province Governor, or the head of a Si/Gun/Gu. <Amended by Act No. 12680, May 28, 2014>
(2) The Metropolitan Autonomous City Mayor, Special Self-Governing Province Governor, or the head of a Si/Gun/Gu may, where necessary, request the project owner, etc., service provider, and other institutions related to the information and communications project to submit data related to the verification to be conducted before the commencement of the project and the pre-use inspection under paragraph (1). <Newly Inserted by Act No. 12680, May 28, 2014>
(3) Procedures, etc. for the verification prior to the commencement of a project and pre-use inspection under paragraph (1) shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 37 (Liability for Warranty on Projects)
(1) Every contractor shall be liable to provide the project owner with a warranty on the defects that occur in a period determined by Presidential Decree by the type of projects within five years.
(2) Notwithstanding paragraph (1), no contractor shall be liable to provide a warranty on the defects the cause of which falls under any of the following subparagraphs: Provided, That any contractor shall be liable to provide a warranty where he/she failed to notify the project owner of the unsuitability of materials or instructions, even though he/she knew such unsuitability:
1. Where a defect is caused by the deficient quality, specifications, etc. of the materials provided by the project owner;
2. Where a project is performed as instructed by the project owner.
(3) Where other Acts (excluding Articles 670 and 671 of the Civil Act) particularly provide for the liability to guarantee against the defects of projects, such Acts shall apply to the liability to guarantee against the defects of projects.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
CHAPTER IV INFORMATION AND COMMUNICATIONS ENGINEERS
 Article 38 (Fostering, Education, etc. of Human Resources in Information and Communications Technology)
(1) For the efficient utilization of human resources in information and communications technology, including information and communications engineers, as well as for the improvement of their qualities, the Minister of Science and ICT may foster human resources in information and communications technology and provide education and training for their recognition. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(2) For the stable supply of human resources in information and communications technology, the Minister of Science and ICT may designate training institutions for information and communications technological human resources and reimburse the expenses therefor from the Broadcast Communications Development Fund, etc. under Article 24 of the Framework Act on Broadcasting Communications Development. <Amended by Act No. 9708, May 22, 2009; Act No. 11690, Mar. 23, 2013; Act No. 12680, May 28, 2014; Act No. 14839, Jul. 26, 2017>
(3) Matters necessary for the fostering, education, etc. of human resources in information and communications shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 39 (Recognition, etc. of Information and Communications Engineers)
(1) Any person that intends to be recognized as an information and communications engineer shall make an application for the recognition of qualifications to the Minister of Science and ICT, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(2) When the applicant referred to in paragraph (1) has the qualifications for information and communications engineers as determined by Presidential Decree, the Minister of Science and ICT shall recognize him/her as an information and communications engineer. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(3) Upon recognizing the applicant referred to in paragraph (1) as an information and communications engineer, the Minister of Science and ICT shall issue a certificate describing the grade, work experiences, etc. of the information and communications engineer (hereinafter referred to as "career pocket book") to the information and communications engineer concerned. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(4) Matters necessary for the issuance and management of a career pocket book referred to in paragraph (3) shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 40 (Prohibition of Concurrent Holding of Office, etc. by Information and Communications Engineers)
(1) No information and communications engineer shall work for two or more construction business entities at the same time.
(2) No information and communications engineer shall allow another person to provide services or conduct construction work by using his/her name or lend his/her career pocket book to another person.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
CHAPTER V PROJECT-RELATED ORGANIZATIONS
 Article 41 (Establishment of Information and Communications Contractors Association)
(1) Any construction business operator may establish an information and communications contractors association (hereinafter referred to as the "Association") under authorization by the Minister of Science and ICT to maintain the dignity of construction business operators, advance technologies, improve methods of conducting construction works, and conduct other acts for the sound development of construction business. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(2) The Association shall be a juristic person.
(3) Matters necessary for the establishment, supervision, etc. of the Association shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 42 (Qualifications for Membership)
Any person that has completed the registration of a construction business pursuant to Article 14 (1) may join the Association.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 43 (Proposals)
For the purpose of the appropriate performance of construction and the sound development of construction business, the Association may make proposals to the Minister of Science and ICT with respect to matters concerning the construction business. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 44 (Provisions of Civil Act Applicable Mutatis Mutandis)
Except as otherwise provided for in this Act, the provisions of the Civil Act pertaining to incorporated associations shall apply mutatis mutandis to the Association.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 45 (Establishment of Information and Communications Financial Cooperative)
(1) In order to facilitate independent economic activities through a cooperative organization of construction business operators and provide various kinds of guarantees, financial loans, etc. which are necessary for the operation of a construction business, any construction business operator may establish an information and communications financial cooperative (hereinafter referred to as the "Cooperative") after obtaining authorization from the Minister of Science and ICT. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(2) The Cooperative shall be a juristic person.
(3) Matters necessary for the establishment, supervision, etc. of the Cooperative shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 46 (Businesses of Cooperative)
The businesses of the Cooperative shall be determined by its articles of incorporation.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 47 (Appointment of Representatives)
The Cooperative may appoint a representative competent to take judicial or non-judicial actions with regard to its operations, from among its officers or employees.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 48 (Transfer of Shares, etc.)
(1) Any person that is or was a member of the Cooperative may transfer his/her shares to another member of the Cooperative or to a person who intends to become a member of the Cooperative, as prescribed by the articles of incorporation.
(2) Any person that has acquired shares pursuant to paragraph (1) shall succeed to the rights and duties of the transferor in connection with the shares.
(3) The transfer of shares and the establishment of a pledge right over shares (limited to cases where shares are provided as security for liabilities owed to the Cooperative) shall follow the method of transferring stocks and establishing a pledge right under the Commercial Act. <Amended by Act No. 12591, May 20, 2014>
(4) The provisional seizure or seizure of shares pursuant to civil execution procedures, procedures for the collection of delinquent national taxes, etc. shall follow the method of putting debts payable to order under provisional seizure or seizure under the Civil Execution Act.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 49 (Acquisition, etc. of Shares by Cooperative)
(1) When a cause falling under any of the following subparagraphs occurs, the Cooperative may acquire the shares of those who are or were the members of the Cooperative: Provided, That it shall acquire the relevant shares necessarily in cases of falling under subparagraph 1 or 3:
1. Where the Cooperative intends to decrease contributions;
2. Where the Cooperative needs such acquisition to exercise the security right it holds against its members;
3. Where a member who intends to secede from the Cooperative demands that the Cooperative acquire his/her shares in order to recover the amount of his/her contributions;
4. Where two years have passed since a member seceded from the Cooperative;
5. Where a fractional account occurs at the time of transferring reserve funds to contributions.
(2) When acquiring shares pursuant to paragraph (1) 1, the Cooperative shall promptly take procedures for the decrease of contributions and shall, when acquiring shares by a cause falling under any of subparagraphs 2 through 5 of the same paragraph, dispose of the shares without delay.
(3) When acquiring shares pursuant to paragraph (1), the Cooperative shall promptly pay the amount that it is liable to pay to those who are or were its members.
(4) The right of claim for liquidation money which is entitled to those who are or were members of the Cooperative as a result of the Cooperative's acquisition of shares pursuant to paragraph (1) shall lapse unless it is exercised within five years from the date on which the shares are acquired.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 50 (Liability of Cooperative)
(1) When a cause or event gives rise to the disbursement of guarantee money under the conditions prescribed by statutes or other deeds of contract with regard to the matters guaranteed, the Cooperative shall disburse guarantee money to guaranty creditors.
(2) The right to guarantee money that a guaranty creditor holds against the Cooperative pursuant to paragraph (1) shall lapse by prescription unless it is exercised within two years from the date on which the period of guarantee expires. <Amended by Act No. 11202, Jan. 17, 2012>
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 51 (Other Acts Applicable Mutatis Mutandis)
Except as otherwise provided for in this Act, the provisions of the Civil Act pertaining to incorporated associations and provisions of the Commercial Act pertaining to the accounts of stock companies shall apply mutatis mutandis to the Cooperative.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
CHAPTER VI (Articles 52 through 62) Deleted.
CHAPTER VII SUPERVISION
 Article 63 (Guidance, Supervision, etc. of Construction Business Operators)
(1) Where its deemed necessary in order to judge whether construction business operators satisfy criteria for registration, give subcontracts properly, perform projects faithfully, etc., a Mayor/Do Governor may order construction business operators to report the status of their businesses and performance or submit data, and may have public officials under his/her control investigate the actual state of business management of construction business operators or inspect construction materials or facilities.
(2) Any public official that conducts an investigation or inspection under paragraph (1) shall carry along a certificate that shows his/her authority and present it to related persons.
(3) A Mayor/Do Governor may, when he/she deems it necessary, demand the submission of data on the status of performance of information and communications construction projects from the project owners, supervisors of the information and communications construction projects, and other organizations related to the information and communications construction projects.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 64 (Suspension of Duties of Supervisors)
Where a supervisor allows another person to conduct the duty of supervision in his/her name or lends his/her license to another person in violation of Article 8 (6), the Minister of Science and ICT may order him/her to suspend performance of such duty, for a fixed period not exceeding one year. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 64-2 (Cancellation of Recognition of Supervisor)
The Minister of Science and ICT shall cancel the recognition of supervisor for a person who falls under any of the following subparagraphs: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
1. A person who has obtained his/her recognition of the qualification of supervisor referred to in Article 8 (4) by false or other unjust means;
2. A person whose relevant national technical qualification is cancelled pursuant to Article 16 (1) of the National Technical Qualifications Act.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 65 (Corrective Measures, etc.)
Where a construction business operator falls under any of the following subparagraphs, a Mayor/Do Governor may issue a corrective measure for a fixed period or other necessary directions:
1. Where the construction business operator performs a project in violation of Article 12;
2. Where the construction business operator gives a subcontract in violation of Article 31;
3. Where the construction business operator fails to make a payment to a subcontractor in violation of Article 31-4;
4. Where the construction business operator fails to place an information and communications engineer referred to in Article 33 (1);
5. Where the construction business operator is feared to perform a project unfaithfully by performing the project in violation of the provisions of the Framework Act on Telecommunications or other relevant statutes;
6. Where the construction business operator fails to carry out a contracted project without any justifiable ground.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 66 (Suspension of Business and Cancellation of Registration)
Where a construction business operator falls under any of the following subparagraphs, a Mayor/Do Governor may order the suspension of business, by fixing a period not exceeding one year, or cancel registration: Provided, That the Mayor/Do Governor shall cancel registration in cases of falling under subparagraphs 1, 5, 7, 13, or 15: <Amended by Act No. 11202, Jan. 17, 2012; Act No. 12680, May 28, 2014; Act No. 12876, Dec. 30, 2014; Act No. 13589, Dec. 22, 2015; Act No. 15375, Feb. 21, 2018>
1. Where a construction business operator obtains registration of his/her construction business under Article 14 (1) by unlawful means;
2. and 3. Deleted; <by Act No. 12876, Dec. 30, 2014>
4. Where a construction business operator fails to meet the criteria for registration referred to in Article 15: Provided, That the same shall not apply to cases prescribed by Presidential Decree, such as where the court decides to commence the rehabilitation procedures and the procedures therefor are being proceeded with, or where the construction business operator fails temporarily to meet the criteria for registration;
5. Where a construction business operator falls under any subparagraph of Article 16: Provided, That the same shall not apply where a corporation falling under subparagraph 7 of the same Article replaces the relevant officers within three months from the date on which it becomes aware of the fact and where a successor referred to in Article 21 (1) transfers the relevant construction business to another person within three months from the date of succession;
6. Where a construction business operator falsely submits a report under Article 23 (1);
7. Where a construction business operator lends his/her registration certificate or registration pocket book to another person or uses a registration certificate or registration pocket book borrowed from another person, in violation of Article 24;
8. Where a construction business operator submits false documents on records of construction works, capital, and other matters determined by Presidential Decree, in violation of Article 27 (3);
9. and 10. Deleted; <by Act No. 15375, Feb. 21, 2018>
11. Where a construction business operator contravenes the corrective measures or directions under Article 65;
11-2. Where it falls under any of subparagraph 2, 4, or 5 of Article 65 and it is impossible to issue a corrective order or an instruction under the same Article because the relevant construction business has been completed;
12. Deleted; <by Act No. 15375, Feb. 21, 2018>
13. Where a construction business operator contravenes the disposition of suspension of business or has been subject to the disposition of suspension of business on at least three occasions during the last five years;
14. Where the State or a local government requests the suspension of business or cancellation of registration according to other statutes with respect to the construction business operator;
15. Where a construction business operator reports a business closure to the head of the competent tax office in accordance with Article 8 (6) of the Value-Added Tax Act or the head of the competent tax office revokes the business registration in accordance with the paragraph (7) of the same Article.
(2) In order to verify whether the report on a business closure or the revocation of the business registration under paragraph 1 (15) (hereinafter referred to as “business closure, etc.”) was made, a Mayor/Do Governor may request the head of the competent tax office to provide data regarding the business closure, etc. of a construction business operator. In such cases, the Mayor/Do Governor may jointly use administrative information pursuant to Article 36 (1) of the Electronic Government Act, if it is necessary to verify the business closure, etc. <Newly Inserted by Act No. 15375, Feb. 21, 2018>
(3)  In cases of taking administrative measures pursuant to paragraph (1), matters necessary for the standard for administrative measures according to the type and degree, etc. of violation shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 15375, Feb. 21, 2018>
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 66-2 (Imposition of Penalty Surcharges)
(1) Where a corrective order or an instruction under subparagraph 4 of Article 65 was violated or a Mayor/Do Governor is obliged to order the suspension of business pursuant to Article 66 (1) 4 but the suspension of business concerned is likely to cause severe inconvenience to users or harm public interests, he/she may impose a penalty surcharge not exceeding 30 million won in lieu of the imposition of the business suspension. <Amended by Act No. 12876, Dec. 30, 2014; Act No. 15375, Feb. 21, 2018>
(2) The amount of a penalty surcharge to be determined considering types and severity etc. of violations subject to the imposition of the penalty surcharge pursuant to paragraph (1) and other necessary matters shall be prescribed by Presidential Decree.
(3) If a person obliged to pay a penalty surcharge in accordance with paragraph (1) fails to pay it within the time limit for payment, the penalty surcharge shall be collected pursuant to the Act on Collection, etc. of Local Non-Tax Revenues. <Amended by Act No. 11998, Aug. 6, 2013>
[This Article Newly Inserted by Act No. 11202, Jan. 17, 2012]
 Article 67 (Interested Persons' Request for Sanctions)
Where a matter falling under Articles 65 or 66 (1) arises in relation to a construction business operator, any interested person may request the relevant Mayor/Do Governor to take appropriate measures against the construction business operator, after reporting the grounds therefor. <Amended by Act No. 15375, Feb. 21, 2018>
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 68 (Suspension of Duties of Information and Communications Engineers)
Where an information and communications engineer falls under any of the following subparagraphs, the Minister of Science and ICT may order the suspension of performing his/her duties, by fixing a period not exceeding one year: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
1. Where the information and communications engineer works for two or more construction business entities at the same time, in violation of Article 40 (1);
2. Where the information and communications engineer allows another person to provide a service or conduct a construction work in his/her name or lends his/her career pocket book to another person, in violation of Article 40 (2).
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 68-2 (Cancellation of Recognition of Information and Communications Engineers)
The Minister of Science and ICT shall cancel the recognition of an information and communications engineer who falls under any of the following subparagraphs: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
1. A person who has obtained the recognition of the qualification of an information and communications engineer referred to in Article 39 (2) by false or other unjust means;
2. A person whose relevant national technical qualification is cancelled pursuant to Article 16 (1) of the National Technical Qualifications Act.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 68-3 (Hearings)
The Minister of Science and ICT or a Mayor/Do Governor shall hold a hearing, when he/she intends to impose any of the following dispositions: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12680, May 28, 2014; Act No. 13589, Dec. 22, 2015; Act No. 14839, Jul. 26, 2017; Act No. 15375, Feb. 21, 2018>
1. Cancellation of recognition of a supervisor under Article 64-2;
2. Suspension of business and cancellation of registration under Article 66 (1) (excluding subparagraph 15);
3. Cancellation of recognition of an information and communications engineer under Article 68-2.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
CHAPTER VIII SUPPLEMENTARY PROVISIONS
 Article 69 (Delegation and Entrustment of Authority)
(1) Part of the authority of the Minister of Science and ICT under this Act may be delegated to the heads of the institutions under its control, as prescribed by Presidential Decree. <Amended by Act No. 11202, Jan. 17, 2012; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(2) The Minister of Science and ICT or a Mayor/Do Governor may entrust the following affairs under this Act to the Association, as prescribed by Presidential Decree: <Amended by Act No. 11202, Jan. 17, 2012; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
1. Affairs concerning the receipt of applications for recognition, recognition, and issuance and management of licenses of supervisors under Article 8 (3) through (5);
1-2. Affairs concerning the receipt of applications for registration of construction business pursuant to Article 14 (1);
1-3. Deleted; <by Act No. 12876, Dec. 30, 2014>
1-4. Affairs concerning the receipt of reports on the transfer or merger of construction business pursuant to Article 17 (1);
2. Affairs concerning reports under Article 23 (1);
3. Affairs concerning the integrated management of information, assessment and publication of performance of construction works, and provision of information under Article 27;
4. Affairs concerning the receipt of applications for recognition, recognition, and issuance and management of career pocket books of information and communications engineers under Article 39 (1) through (3);
5. Affairs concerning the cancellation of recognition of supervisors under Article 64-2;
6. Affairs concerning the cancellation of recognition of information and communications engineers under Article 68-2;
7. Affairs concerning hearings under subparagraphs 1 and 3 of Article 68-3.
(3) The Minister of Science and ICT may entrust the Association or training institutions for information and communications technological manpower designated and announced by the Minister of Science and ICT with affairs concerning the fostering of information and communications technological manpower as well as education and training for their recognition under Article 38 (1). <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 70 (Confidentiality)
No person that falls under any of the following subparagraphs shall disclose the financial and business conditions of any service provider or construction business operator that he/she becomes aware of in the course of conducting his/her duties, unless any extraordinary circumstance exists:
1. A person who is or was a public official engaged in administrative affairs concerning registration, reports, or supervision under this Act;
2. A person who is or was engaged in entrusted administrative affairs under Article 69 (2) and (3).
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 71 (Legal Fiction as Public Officials in Application of Penalty Provisions)
Any person engaged in entrusted administrative affairs under Article 69 (2) and (3) shall be deemed a public official in the application of Articles 129 through 132 of the Criminal Act.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 71-2 (Prohibition of Seizure of Wages)
(1) Of the amount of the contract price of a project contracted to a construction business operator, the amount equivalent to wages payable to the laborers who work on the project (including subcontracted projects) shall not be seized.
(2) The scope of the amount equivalent to wages referred to in paragraph (1) and the method of the calculation thereof shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 72 (Publication of Registration, etc.)
In cases of falling under any of the following subparagraphs, a Mayor/Do Governor shall make public the details of such fact, as prescribed by Presidential Decree:
1. Where he/she registers a construction business;
2. Where he/she receives a report on the transfer of a construction business or the merger of corporations;
3. Where a representative is replaced as a result of succession to a construction business;
4. Where he/she imposes a disposition of cancellation of registration of a construction business or suspension of business.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 72-2 (Reports on Current Status, etc. of Construction Business)
(1) The Minister of Science and ICT may demand a report on the results of guidance and supervision under Article 63 from Mayors/Do Governors. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(2) A Mayor/Do Governor shall report the current status of the registration of construction businesses under Article 14 to the Minister of Science and ICT, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(3) The Metropolitan Autonomous Mayor, the Special Self-Governing Province Governor, or the head of a Si/Gun/Gu shall report the current status of the pre-use inspection under Article 36 to the Minister of Science and ICT, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12680, May 28, 2014; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 73 (Fees)
Any person falling under any of the following subparagraphs shall pay fees as prescribed by Presidential Decree:
1. A person intending to obtain recognition of a supervisor referred to in Article 8 (3);
2. A person applying for registration of a construction business pursuant to Article 14 (1);
3. A person applying for the re-issuance of the registration certificate and registration pocket book under Article 14 (3);
4. A person intending to have performance capabilities assessed pursuant to Article 27 (2) and a person intending to be provided with information pursuant to paragraph (4) of the same Article;
5. A person applying for a pre-use inspection pursuant to Article 36 (1);
6. A person intending to obtain recognition of an information and communications engineer under Article 39 (1).
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
CHAPTER IX PENALTY PROVISIONS
 Article 74 (Penalty Provisions)
Any person falling under any of the following subparagraphs shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 20 million won: <Amended by Act No. 15375, Feb. 21, 2018>
1. A person who carries out construction and supervision concurrently, in violation of Article 12;
2. A person who conducts a construction business without making the registration referred to in Article 14 (1) or by making such registration by unjust means;
3. A person who conducts a construction business without making the reports referred to in Article 17 (1) or by making such reports by unjust means;
4. A person who lends his/her registration certificate or registration pocket book to another person or uses a registration certificate or registration pocket book borrowed from another person, in violation of Article 24;
5. A person subject to the disposition of suspension of business referred to in Article 66 (1), who conducts a business during the period of business suspension.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 75 (Penal Provisions)
Any person falling under any of the following subparagraphs shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding ten million won:
1. A person who has a person who is not a supervisor referred to in Article 8 (2) supervise;
2. A person who has another person carry out the duty of supervision in his/her name or lends his/her license to another person or conducts the duty of supervision in another person's name or uses a license borrowed from another person, in violation of Article 8 (6);
3. A person who gives a subcontract, in violation of Article 31 (1) or (2);
4. A person who commences a construction work without obtaining verification prior to the commencement of the construction work or uses information and communications facilities without receiving a pre-use inspection under Article 36 (1);
5. A person who lends his/her career pocket book to another person or uses a career pocket book borrowed from another person, in violation of Article 40 (2).
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 76 (Penalty Provisions)
Any person falling under any of the following subparagraphs shall be punished by a fine not exceeding five million won:
1. A person who designs or supervises in conflict with the technical standards referred to in Article 6;
2. A person who places an order, in violation of Article 7 (1);
3. A person who places an order, in violation of Article 8 (1);
4. A person who fails to separate contracts, in violation of Article 25;
5. A person who contracts with a person who is not a construction business operator, in violation of Article 29;
6. A person who fails to place information and communications engineers referred to in Article 33 (1) at the construction site.
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
 Article 77 (Joint Penalty Provisions)
When the representative of a corporation, or an agent, employee, or other servant of an individual commits an offence under Articles 74 through 76 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 under the relevant provisions: Provided, That this shall not apply where the corporation or the individual has not neglected to pay due attention and supervision concerning the relevant business in order to prevent such violation.
[This Article Wholly Amended by Act No. 10140, Mar. 17, 2010]
 Article 78 (Administrative Fine)
(1) Any person falling under any of the following subparagraphs shall be subject to an administrative fine not exceeding three million won:
1. A person who fails to put his/her signature, or put his/her name and affix his/her seal, on design documents and drawings, in violation of Article 7 (2);
2. A person who obtains a supervisor's license referred to in Article 8 (5) by false or other unjust means;
3. A person who fails to notify the results of supervision under Article 11;
4. A person who fails to report or report cessation of business referred to in Article 23, or makes such reports by falsehood;
5. A person who submits false documents concerning records of construction work, capital, and other matters determined by Presidential Decree, in violation of Article 27 (3);
6. A person who leaves a construction site without justifiable grounds, in violation of Article 33 (2);
7. A person who is issued an information and communications engineer's career pocket book referred to in Article 39 (3) by false or other unjust means;
8. A person who works for two or more construction business entities at the same time, in violation of Article 40 (1);
9. A person who refuses, interferes with, or evades the investigation or inspection referred to in Article 63 (1), or who submits false documents or makes false reports.
(2) Any person falling under any of the following subparagraphs shall be subject to an administrative fine not exceeding one million won:
1. A person who fails to give notice under Article 22 (2);
2. A person who fails to submit data or report under Article 63 (1).
(3) Administrative fines under paragraphs (1) and (2) shall be imposed and collected by the Minister of Science and ICT or by Mayors/Do Governors, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 9553, Mar. 25, 2009]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1998: Provided, That Articles 27 (1), 36 and, 42 shall enter into force on January 1, 1999.
Article 2 (Transitional Measures concerning Existing Construction Business Operators)
(1) Any person who has been permitted to conduct Level I or II general construction business under the previous provisions as at the time this Act enters into force shall be deemed to have been permitted to perform Level I or II information and communications construction business: Provided, That he/she shall be issued a permission certificate or handbook under this Act within six months after this Act enters into force.
(2) Any person with a registration under different categories of construction business under the previous provisions as at the time this Act enters into force shall be deemed to have been permitted to conduct Level II information and communications construction business according to this Act for the effective periods of such registration: Provided, That where the effective period of registration is not to expire in one year from the enforcement date of this Act, he/she shall be deemed to have been permitted to conduct Level II information and communications construction business according to this Act by the end of one year after this Act enters into force, notwithstanding the effective period of registration.
(3) Different categorical construction business operators under paragraph (2) shall obtain permission from the Minister of Information and Communication in satisfaction of requirements for a Level II construction business permission according to this Act within the effective period of registration or within one year after this Act enters into force.
Article 3 (Transitional Measures concerning Grounds for Disqualification for Construction Business Permission)
Previous provisions shall apply to a person who has applied for construction business permission according to the previous provisions as at the time this Act enters into force, notwithstanding Article 16.
Article 4 (Transitional Measures concerning Those Who Applied for Authorization of Transfer of Construction Business, etc.)
Previous provisions shall apply to a person who has applied for authorization of transfer of construction business, etc. according to the previous provisions as at the time this Act enters into force, notwithstanding Article 17.
Article 5 (Transitional Measures concerning Changes of Name)
(1) The Telecommunications Work Association and the Telecommunication Mutual-Aid Cooperative as at the time this Act enters into force shall be deemed the Information and Communications Work Association and the Information and Communications Mutual-Aid Cooperative, respectively.
(2) The Telecommunications Work Association and the Telecommunications Mutual-Aid Cooperative as at the time this Act enters into force shall be deemed in their activities or other legal relations as the Information and Communications Work Association and the Information and Communications Mutual-Aid Cooperative, respectively.
(3) Designations of the Telecommunications Work Association, and the Telecommunications Mutual-Aid Cooperative on registers or other public records as at the time this Act enters into force shall be deemed the Information and Communications Work Association and the Information and Communications Mutual-Aid Cooperative, respectively.
Article 6 (Transitional Measures concerning Commission on Conciliation of Disputes Arising from Telecommunications Construction Business)
The Commission on Conciliation of Disputes Arising from Telecommunications Construction Business created according to the previous provisions as at the time this Act enters into force shall be deemed the Commission on Conciliation of Disputes Arising from Information and Communications Construction Business established by Article 52.
Article 7 Omitted.
Article 8 (Relation to Other Statutes)
If other statutes cite the provisions of the Telecommunications Work Business Act or its provisions and where this Act contains corresponding provisions as at the time this Act enters into force, this Act of its corresponding provisions shall be deemed to have been cited.
ADDENDA <Act No. 5791, Feb. 5, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 1999.
Article 2 (Transitional Measures concerning Existing Construction Business Operators)
(1) A person who obtains a permission to conduct Level I and II information and communications construction business under the previous provisions as at the time this Act enters into force, shall be deemed to register the information and communications construction business under this Act.
(2) A different categorical construction business operator who is deemed to obtain a permission to conduct Level II information and communications construction business under Article 2 (2) of the Addenda of Act No. 5386, as at the time this Act enters into force, shall be deemed to register the information and communications construction business under this Act for the period of validity of such registration. In such cases, the scope of a contract for construction business of said different categorical construction business operator shall be governed by the previous provisions.
Article 3 (Transitional Measures concerning Person Making Application for Permission to Conduct Construction Business)
(1) Notwithstanding the amended provisions of Article 14, the previous provisions shall apply to a person who makes an application for a permission to conduct the construction business under the previous provisions as at the time this Act enters into force.
(2) A person who obtains a permission to conduct Level I and II information and communications construction business under paragraph (1), shall be deemed to register the information and communications construction business under this Act.
Article 4 (Transitional Measures concerning Person Making Application for Authorization of Transfer of Construction Business, etc.)
A person who makes an application for an authorization of transfer of construction business, etc. under the previous provisions as at the time this Act enters into force, shall be deemed to make a report under this Act.
ADDENDA <Act No. 6358, Jan. 16, 2001>
(1) (Enforcement Date) This Act enters into force on June 1, 2001.
(2) (Applicability to Provisions for Exceptions to Work Restrictions) The amendments to subparagraph 3 of Article 3 concerning the exceptions to work restrictions shall be applicable to the construction work contracted on and after the date this Act enters into force.
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. 7140, Jan. 29, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Restrictions, etc. on Subcontract)
The amended provisions of Articles 31, 31-2 through 31-5, and 71-2 shall apply to the portion of construction works for which a contract is to be concluded first after this Act enters into force.
Article 3 (Applicability to Pre-Use Inspection)
The amended provisions of Article 36 shall apply to the portion of construction works for which an application for the pre-use inspection is to be filed first after this Act enters into force.
Article 4 (Transitional Measures concerning Registration of Construction Business Operator)
Any construction business operator who has made a registration to the Minister of Information and Communication as referred to the previous provisions as at the time this Act enters into force shall be deemed to have registered his/her construction business to the Mayor/Do Governor as referred to in the amended provisions of Article 14.
Article 5 (Transitional Measures concerning Surveyor and Information and Communications Technician)
A person who has obtained an issuance of the qualification certificate of the surveyor or the career handbook of the information and communications technician as referred to the previous provisions as at the time this Act enters into force shall be deemed to have obtained a recognition of the surveyor or the information and communications technician as referred to in the amended provisions of Articles 8 and 39.
Article 6 (Transitional Measures concerning Administrative Fine)
The previous provisions shall govern any levy of the administrative fine on the acts committed before this Act enters into force.
Article 7 (General Transitional Measures)
Any application or report, etc. and other acts by the administrative agencies performed as referred to in the previous provisions before this Act enters into force, or various applications and other acts against the administrative agencies, shall be regarded as acts of the administrative agencies or acts against the administrative agencies corresponding thereto, as referred to in this Act.
Article 8 Omitted.
ADDENDA <Act No. 7265, Dec. 30, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2005.
Articles 2 and 3 Omitted.
ADDENDUM <Act No. 7817, Dec. 30, 2005>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 8867, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Act No. 9480, Mar. 5, 2009>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Transitional Measure concerning Penalty Provisons) In the application of the penalty provisions against the acts conducted before this Act enters into force, the former provisions shall apply.
ADDENDUM <Act No. 9553, Mar. 25, 2009>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 9708, May 22, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDUM <Act No. 10140, Mar. 17, 2010>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 10250, Apr. 12, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 11202, Jan. 17, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Extinctive Prescription of Guaranty Creditor’s Right)
The amended provisions of Article 50 shall apply to the guarantee money required to be paid on or after the date this Act enters into force.
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. 11998, Aug. 6, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 and 3 Omitted.
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. 12680, May 28, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of subparagraph 1 of Article 16 shall enter into force on the date of its promulgation.
Articles 2 (Applicability to Appropriateness Evaluation of Subcontract Agreement)
The amended provisions of Article 31-6 shall apply to the projects to be subcontracted after this Act enters into force.
Articles 3 (Transitional Measures concerning Disqualification of Incompetent Persons, etc.)
Notwithstanding the amended provisions of subparagraph 1 of Article 16, persons who are already declared as incompetent or quasi-incompetent as at the time the amended provisions enters into force and, therefore, to whom the declaration of the incompetency or quasi-incompetency continues to maintain its effect under Article 2 of the Addenda to the partially amended Civil Act (Act No. 10429) shall be governed by the former provisions.
ADDENDA <Act No. 12876, Dec. 30, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force three months after its promulgation.
Article 2 (Transitional Measure concerning Standards for Administrative Dispositions)
Notwithstanding the amended provisions of subparagraphs 2 and 3 and of Article 66, the previous provisions thereof shall apply when applying standards for administrative dispositions to any acts committed before this Act enters into force.
ADDENDUM <Act No. 13589, Dec. 22, 2015>
This Act shall enter into force six months after its promulgation.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation: Provided, That the amended parts of Acts, which were promulgated before this Act enters into force but whose enforcement dates have not yet arrived, from among the Acts amended by Article 5 of the Addenda, shall enter into force on the enforcement dates of the respective Acts.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 15375, Feb. 21, 2018>
This Act shall enter into force six months after the date of its promulgation.