ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON THE CONSTRUCTION INDUSTRY
Wholly Amended by Presidential Decree No. 15433, Jul. 10, 1997
Amended by Presidential Decree No. 15598, Dec. 31, 1997
Presidential Decree No. 15581, Dec. 31, 1997
Presidential Decree No. 16063, Dec. 31, 1998
Presidential Decree No. 16514, Aug. 6, 1999
Presidential Decree No. 16512, Aug. 6, 1999
Presidential Decree No. 16790, Apr. 18, 2000
Presidential Decree No. 16798, May 1, 2000
Presidential Decree No. 17296, Jul. 7, 2001
Presidential Decree No. 17347, Aug. 25, 2001
Presidential Decree No. 17740, Sep. 18, 2002
Presidential Decree No. 18092, Aug. 21, 2003
Presidential Decree No. 18146, Nov. 29, 2003
Presidential Decree No. 18312, Mar. 17, 2004
Presidential Decree No. 18736, Mar. 8, 2005
Presidential Decree No. 18822, May 7, 2005
Presidential Decree No. 18918, jun. 30, 2005
Presidential Decree No. 19139, Nov. 25, 2005
Presidential Decree No. 19422, Mar. 29, 2006
Presidential Decree No. 19513, jun. 12, 2006
Presidential Decree No. 20488, Dec. 28, 2007
Presidential Decree No. 20722, Feb. 29, 2008
Presidential Decree No. 20791, May 26, 2008
Presidential Decree No. 20805, jun. 5, 2008
Presidential Decree No. 20947, Jul. 29, 2008
Presidential Decree No. 20977, Aug. 26, 2008
Presidential Decree No. 21098, Oct. 29, 2008
Presidential Decree No. 21214, Dec. 31, 2008
Presidential Decree No. 21233, Dec. 31, 2008
Presidential Decree No. 21626, Jul. 7, 2009
Presidential Decree No. 21765, Oct. 1, 2009
Presidential Decree No. 21819, Nov. 10, 2009
Presidential Decree No. 22173, May 27, 2010
Presidential Decree No. 22269, Jul. 12, 2010
Presidential Decree No. 22303, Jul. 26, 2010
Presidential Decree No. 22493, Nov. 15, 2010
Presidential Decree No. 22903, Apr. 14, 2011
Presidential Decree No. 23282, Nov. 1, 2011
Presidential Decree No. 23356, Dec. 8, 2011
Presidential Decree No. 23583, Feb. 2, 2012
Presidential Decree No. 23869, jun. 21, 2012
Presidential Decree No. 23928, Jul. 4, 2012
Presidential Decree No. 24155, Oct. 29, 2012
Presidential Decree No. 24204, Nov. 27, 2012
Presidential Decree No. 24443, Mar. 23, 2013
Presidential Decree No. 24616, jun. 17, 2013
Presidential Decree No. 25050, Dec. 30, 2013
Presidential Decree No. 25152, Feb. 5, 2014
Presidential Decree No. 25273, Mar. 24, 2014
Presidential Decree No. 25358, May 22, 2014
Presidential Decree No. 25532, Aug. 6, 2014
Presidential Decree No. 25727, Nov. 14, 2014
Presidential Decree No. 25751, Nov. 19, 2014
Presidential Decree No. 26517, Sep. 11, 2015
Presidential Decree No. 26844, Dec. 31, 2015
Presidential Decree No. 26979, Feb. 11, 2016
Presidential Decree No. 27115, Apr. 29, 2016
Presidential Decree No. 27299, jun. 30, 2016
Presidential Decree No. 27440, Aug. 4, 2016
Presidential Decree No. 27444, Aug. 11, 2016
Presidential Decree No. 27751, Dec. 30, 2016
Presidential Decree No. 27792, Jan. 17, 2017
Presidential Decree No. 27960, Mar. 27, 2017
Presidential Decree No. 28211, Jul. 26, 2017
Presidential Decree No. 28325, Sep. 19, 2017
Presidential Decree No. 28471, Dec. 12, 2017
Presidential Decree No. 29006, jun. 26, 2018
Presidential Decree No. 29086, Aug. 7, 2018
Presidential Decree No. 29163, Sep. 18, 2018
Presidential Decree No. 29269, Oct. 30, 2018
Presidential Decree No. 29415, Dec. 24, 2018
CHAPTER I GENERAL PROVISIONS
| Article 2 (Establishment of Master Plans for Construction Industry Promotion) |
| (1) | When the Minister of Land, Infrastructure and Transport intends to establish a master plan for the promotion of the construction industry (hereinafter referred to as "master plan") under Article 6 (1) of the Framework Act on the Construction Industry (hereinafter referred to as the "Act"), he/she shall hear opinions from the head of the relevant central administrative agency: Provided, That matters prescribed for in Article 6 (2) 2 of the Act shall be dealt with in accordance with a master plan for the promotion of construction technology formulated pursuant to Article 3 (1) of the Construction Technology Promotion Act. <Amended by Presidential Decree No. 17347, Aug. 25, 2001; Presidential Decree No. 18822, May 7, 2005; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013; Presidential Decree No. 25358, May 22, 2014> |
| (2) | When the Minister of Land, Infrastructure and Transport establishes a master plan under paragraph (1), he/she shall publicly announce the details thereof in the Official Gazette and notify the heads of the relevant central administrative agencies thereof. <Amended by Presidential Decree No. 20805, Jun. 5, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
| (3) | "Other matters prescribed by Presidential Decree" in Article 6 (2) 6 of the Act means the following: <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 23282, Nov. 1, 2011> |
| 1. | Measures to improve productivity of construction works; |
| 2. | Measures to improve the quality, and to standardize the measurement, of construction materials; |
| 3. | Measures to develop a construction business management system. |
| Articles 3 through 5 Deleted. <by Presidential Decree No. 22173, May 27, 2010> |
| Article 6 Deleted. <by Presidential Decree No. 17347, Aug. 25, 2001> |
CHAPTER II REGISTRATION OF CONSTRUCTION BUSINESS
| Article 7 (Category and Details, etc. of Construction Business) |
A category of construction business as referred to in Article 8 of the Act and the details of business by category shall be as described in attached Table 1. <Amended by Presidential Decree No. 20488, Dec. 28, 2007>
| Article 8 (Minor Construction Works, etc.) |
| (1) | "Minor construction works prescribed by Presidential Decree" in the proviso to Article 9 (1) of the Act means the following: <Amended by Presidential Decree No. 16063, Dec. 31, 1998; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24155, Oct. 29, 2012> |
| 1. | Construction works the estimated amount [where the same work is ordered in two or more split contracts, the estimated amount of the construction works shall be the total amount of the estimated amount of each construction work, and where materials of the construction works are furnished by the owner of the construction works (including a contractor in cases of a subcontract), the estimated amount of the construction works shall be the amount including market prices of such materials and freight charges; hereinafter referred to as "estimated amount of construction works"] of which is below 50 million won as construction works falling under a category of business undertaking general construction works and details of business in such business classification under attached Table 1; |
| 2. | Construction works, the estimated amount of which is below 15 million won as construction works falling under a category of business undertaking specialized construction works and details of business in such business classification under attached Table 1: Provided, That the following construction works shall be excluded: |
| (a) | Gas facility installation works; |
| (b) | Deleted; <by Presidential Decree No. 16063, Dec. 31, 1998> |
| (c) | Steel materials installation works and steel structure installation works; |
| (d) | Cableway installation works; |
| (e) | Elevator installation works; |
| (f) | Railroad track construction works; |
| (g) | Heating installation works; |
| 3. | Installation works of machine equipment, etc. easily movable by assembling and dismantling (limited to where a manufacturer or a supplier of the relevant machine equipment, etc. installs on his/her own). |
| (2) | Deleted. <by Presidential Decree No. 16063, Dec. 31, 1998> |
| Article 9 (Examination of Applications for Registration of Construction Business) |
| (1) | The Minister of Land, Infrastructure and Transport shall accept an application for registration filed under Article 9 (2) of the Act unless such registration falls under any of the following: <Newly Inserted by Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24443, Mar. 23, 2013> |
| 1. | Where the application does not meet the standards for registration referred to in Article 13 (1) and (2); |
| 3. | Other cases which are in violation of any restriction under the Act, this Decree or other Acts and subordinate statutes. |
| (2) | If necessary to examine whether a person who files an application for registration of construction business pursuant to Article 9 (2) of the Act is qualified for registration, the Minister of Land, Infrastructure and Transport may actually confirm the holding status of capital, facilities and equipment or require the person to submit the results of diagnosis of his/her financial management conditions. <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24443, Mar. 23, 2013> |
| Article 10 (Management of Information on Registration of Construction Business) |
When the Minister of Land, Infrastructure and Transport has undertaken any of the following affairs, he or she shall input such affairs into the information and communications network of the comprehensive control system of the construction industry information (hereinafter referred to as the "Knowledge Information System of Construction Industry") constructed and operated for systematic control of the construction industry information pursuant to Article 24 (3) of the Act within three days from the date he or she has carried out such affairs: <Amended by Presidential Decree No. 18918, Jun. 30, 2005; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> | 2. | Deleted; <by Presidential Decree No. 29006, Jun. 26, 2018> |
| 4. | Receipt of a report on transfer, merger, or succession of a construction business under Article 17 of the Act; |
| 5. | Correction orders, correction instructions, suspension of business, imposition of a penalty charge, or cancellation of registration under Articles 81 through 83 of the Act; |
[This Article Newly Inserted by Presidential Decree No. 18092, Aug. 21, 2003]
| Article 11 (Publication of Construction Business Registration) |
Where the Minister of Land, Infrastructure and Transport has granted registration of a construction business pursuant to Article 9 (1) of the Act, he/she shall publicly announce such registration as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013>
| Article 12 (Register for Construction Business Registration) |
| (1) | When the Minister of Land, Infrastructure and Transport has granted registration of a construction business pursuant to Article 9 (1) of the Act, he/she shall prepare and manage a register by means of the Knowledge Information System of Construction. <Amended by Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
| (2) | Deleted. <by Presidential Decree No. 20488, Dec. 28, 2007> |
| (3) | Deleted. <by Presidential Decree No. 20805, Jun. 5, 2008> |
[This Article Wholly Amended by Presidential Decree No. 16512, Aug. 6, 1999]
| Article 12-2 Deleted. <by Presidential Decree No. 27440, Aug. 4, 2016> |
| Article 12-3 (Matters Subject to Applications for Alteration of Entries in Certificate of Registration of Construction Business or Pocketbook of Registration of Construction Business) |
"Matters prescribed by Presidential Decree" in Article 9-2 (2) of the Act means the following matters: Provided, That matters reported under Article 17 (1) or (4) of the Act shall be excluded: <Amended by Presidential Decree No. 22173, May 27, 2010; Presidential Decree No. 23282, Nov. 1, 2011> | 3. | Location of a business office; |
| 4. | Corporation (or resident) registration number; |
| 5. | Nationality, or the name of one's affiliated country. |
[This Article Newly Inserted by Presidential Decree No. 17740, Sep. 18, 2002]
| Article 12-4 (Contents, Methods, etc. of Education on Construction Business) |
| (1) | The contents of the education on construction business under Article 9-3 (1) and (2) of the Act (hereinafter referred to as "education on construction business") shall be as follows: |
| 1. | Constructor's ethical management; |
| 2. | Statutes related to the construction industry; |
| 3. | Quality, safety, and environment management of construction works; |
| 4. | Other matters necessary for the sound development of the construction industry. |
| (2) | The education on construction business shall be conducted by means of lectures, audio-visual education, etc., and the time of education shall be at least eight hours. |
[This Article Newly Inserted by Presidential Decree No. 26979, Feb. 11, 2016]
| Article 12-5 (Institutions Conducting Education on Construction Business) |
| (1) | The Minister of Land, Infrastructure and Transport may designate an institution to conduct education on construction business (hereinafter referred to as "education institution") pursuant to Article 9-3 (3) of the Act from among the following institutions: |
| 2. | A non-profit organization established under Article 32 of the Civil Act (limited to cases where an education course related to construction business is opened); |
| (2) | The Minister of Land, Infrastructure and Transport shall designate an education institution after receiving applications from the institutions set forth in the subparagraphs of paragraph (1). |
| (3) | Requirements for the designation of an education institution shall be as shown in attached Table 1-2. |
| (4) | Upon designation of an education institution, the Minister of Land, Infrastructure and Transport shall issue a certificate of designation to the relevant education institution and publish the name, representative, location, etc. of such education institution on the Internet site, etc. |
| (5) | An education institution shall issue a certificate of education completion to a constructor who has received the education. |
| (6) | Except as provided for in paragraphs (1) through (5), matters necessary for the education on construction business shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
[This Article Newly Inserted by Presidential Decree No. 26979, Feb. 11, 2016]
| Article 13 (Standards for Registration of Construction Business) |
| (1) | Standards for registration of a construction business under Article 10 of the Act shall be as follows: <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 17347, Aug. 25, 2001; Presidential Decree No. 17740, Sep. 18, 2002; Presidential Decree No. 18822, May 7, 2005; Presidential Decree No. 19139, Nov. 25, 2005; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24443, Mar. 23, 2013; Presidential Decree No. 25727, Nov. 14, 2014> |
| 1. | It shall have technical capability, capital (referring to the appraised value of assets offered for the construction business in cases of an individual; hereinafter the same shall apply), facilities and equipment provided for in attached Table 2; |
| 1-2. | It shall submit a written confirmation of the possible amount of guarantee issued by financial institutions, etc. designated by the Minister of Land, Infrastructure and Transport (hereinafter referred to as "financial institutions, etc.") pursuant to the following criteria [referring to confirmation that a security provided for in Article 56 (1) 1 of the Act (excluding a tender security] may be made on the amount in excess of the standard amount of capital under subparagraph 1; hereinafter the same shall apply). In such cases, financial institutions, etc. shall determine and publicly announce the detailed criteria therefor pursuant to the criteria for issuance and termination of written confirmation of the possible amount of guarantee, such as evaluation of financial conditions, credit conditions, etc. and provision of security, deposit of cash, etc. determined and publicly announced by the Minister of Land, Infrastructure and Transport: |
| (a) | Financial institutions, etc. shall evaluate the financial status and credit status, etc. of persons applying for issuance of written confirmation of the possible amount of guarantee, and, according to the results of relevant evaluations, obtain security or a deposit of cash within 20 percent through 50 percent of the capital by business type under subparagraph 1; |
| (b) | Deleted; <by Presidential Decree No. 20488, Dec. 28, 2007> |
| (c) | Financial institutions, etc. shall state, on the written confirmation of the possible amount of guarantee, the terms and conditions under which they are to bear an obligation for guarantee on the amount of not less than the standard amount of capital under subparagraph 1 of a person subject to issuance of the written confirmation of the possible amount of guarantee; |
| 2. | Deleted; <by Presidential Decree No. 20805, Jun. 5, 2008> |
| 3. | Where an unlawful business operator is prohibited from participating in a bid pursuant to statutes and regulations on contracts to which the State is a party, statutes and regulations on contracts to which a local government is a party, statutes and regulations on the management of public institutions, or statutes and regulations on local public enterprises, the period of prohibition must have passed first; |
| 4. | Deleted; <by Presidential Decree No. 25727, Nov. 14, 2014> |
| 5. | Where a disposition of suspension of the construction business is imposed, the fixed period must have passed first; |
| 6. | Deleted. <by Presidential Decree No. 18092, Aug. 21, 2003> |
| (2) | Where a foreigner or a foreign corporation having a principal place of business in a foreign country files an application for registration of a construction business, the relevant applicant shall satisfy the following requirements for registration of the construction business: Provided, That the Minister of Land, Infrastructure and Transport may grant registration of the construction business on condition that the applicant satisfies the requirements prescribed in subparagraph 1 or 3 before the applicant enters into the first contract after completing registration for the construction: <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 18822, May 7, 2005; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013; Presidential Decree No. 29163, Sept. 18, 2018> |
| 1. | If any person satisfying the requirements for technical capacity as referred to in attached Table 2 is a foreigner, the foreigner shall have qualifications to sojourn for commercial matters, corporate investment, or trade management as prescribed in attached Table 1-2 of the Enforcement Decree of the Immigration Act; |
| 2. | If the applicant is a corporation, the capital at its principal office, and if the applicant is an individual, the appraised amount of his or her assets (including assets possessed in a foreign country), respectively, shall be not less than the standard specified in attached Table 2; |
| Article 14 Deleted. <by Presidential Decree No. 16512, Aug. 6, 1999> |
| Article 15 Deleted. <by Presidential Decree No. 20488, Dec. 28, 2007> |
| Article 16 (Special Cases concerning Standards for Registration of Construction Services) |
| (1) | Where a construction contractor files an additional application for registration of a further category of construction services, he/she may be deemed to comply with the standards for registration of construction services under attached Table 2 in accordance with the following classification: <Amended by Presidential Decree No. 24443, Mar. 23, 2013; Presidential Decree No. 26979, Feb. 11, 2016> |
| 1. | Capital: He/she may be deemed to already retain an amount of capital that corresponds to a half of the minimum standard amount of capital for the category of business he/she intends to register only once within the limit of a half of the minimum standard amount of capital, as referred to in attached Table 2, for the category of business he/she holds (referring to the minimum standard amount of capital of the category of service, the minimum standard amount of which is the highest where he/she holds at least two categories of services); |
| 2. | Technical capacity: Where the technical capacity, referred to in attached Table 2, required for the category of business he/she holds and the technical capacity required for the category of service he/she intends to additionally register are of the same type and grade and could be jointly utilized, he/she may be deemed to fully meet the registration standard for the said technical workforce capacity of one person (or two persons, where the number of technical workforce who can be jointly utilized is at least five), limited to one time: Provided, That, where a construction contractor files an additional application for registration of a gas facility installation business (limited to Class B and Class C) or heating system installation business (limited to Class B and Class C), he/she may be deemed to fully meet the registration standards related to technical workforce, which could be jointly utilized. |
| (2) | Among construction contractors approved for special cases concerning standards for registration under paragraph (1) 1, where a construction contractor who meets all of the following requirements files an additional application for registration of another category of construction service, he/she may be deemed to already have capital equivalent to a half of the minimum capital standard of the category of construction service, only once, for which he/she intends to obtain registration limited to a half of the minimum capital standard (where he/she has registered at least two categories of construction services, referring to the minimum capital standard for the category of construction service the minimum capital standard of which is the highest) under attached Table 2 of the category of construction service he/she has registered: Provided, That where he/she is subjected to measures or a penalty under subparagraph 2 after he/she registers a further category of construction services because he/she is deemed to have capital equivalent to a half of the minimum capital standard, he/she shall meet the minimum capital standard of the category of construction service he/she has additionally registered within 60 days from the date he/she is subjected to the relevant disposition or penalty: <Newly Inserted by Presidential Decree No. 25727, Nov. 14, 2014> |
| 1. | He/she shall be a construction contractor who has provided construction service for at least 15 years; |
| 2. | He/she must never have been subjected to dispositions, such as the suspension of services, under Article 82, 82-2, or 83 of the Act, or a penalty due to the violation of this Act for the last ten years. |
| (3) | Where a construction contractor who meets all of the requirements referred to in the subparagraphs of paragraph (2) additionally applies for registration of at least two categories of construction services simultaneously, paragraphs (1) and (2) may apply thereto, respectively. <Newly Inserted by Presidential Decree No. 25727, Nov. 14, 2014> |
| (4) | Paragraph (1) shall apply mutatis mutandis where a person, other than a construction contractor, intends to file the first application for registration of at least two categories of construction services. <Amended by Presidential Decree No. 25727, Nov. 14, 2014> |
[This Article Wholly Amended by Presidential Decree No. 21819, Nov. 10, 2009]
| Article 17 (Delivery of Registration Certificates of Construction Business to Forestry Cooperatives, etc.) |
When a Special Metropolitan City Mayor, a Metropolitan City Mayor, a Metropolitan Autonomous City Mayor, a Do Governor, or a Special Self-governing Province Governor (hereinafter referred to as "Mayor/Do Governor") receives a report pursuant to Article 11 (4) of the Forestry Cooperatives Act, he/she shall deliver a registration certificate of the construction business and a registration pocketbook of construction business. <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 16798, May 1, 2000; Presidential Decree No. 18822, May 7, 2005; Presidential Decree No. 25152, Feb. 5, 2014>
| Article 18 (Posting of Signs) |
Any constructor shall post a sign stating the details of his/her construction business registration at an easily visible spot of his/her business office as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013>
| Article 19 (Exceptions to Qualifications for Performing General Construction Works) |
“Cases prescribed by Presidential Decree” in Article 16 (1) 5 of the Act means the following: <Amended by Presidential Decree No. 23869, Jun. 21, 2012; Presidential Decree No. 25358, May 22, 2014> | 1. | Where any of the following constructors has been awarded a contract for general construction works for which the relevant new technology or method of construction is utilized (limited to where the estimated construction amount corresponding to the construction works to which the relevant new technology or method of construction is applied is at least 70/100 of the total estimated construction amount): |
| (b) | A constructor who has completed a registration to establish a patent right for a specific method of construction under Article 87 of the Patent Act; |
| (c) | A constructor who has been granted by a patentee an exclusive license on his/her patent right for a specific method of construction under Article 100 of the Patent Act; |
| (d) | A constructor who has been granted by a patentee a non-exclusive license on his/her patent right for a specific method of construction under Article 102 of the Patent Act; |
| 2. | Where a constructor who has registered for the business of executing general construction works is awarded a contract for any works which belong to appurtenant works (referring to appurtenant construction works prescribed in Article 16 (3) of the Act; hereafter the same shall apply in this Article and Article 20) of the relevant general construction works, and which corresponds to general construction works. |
[This Article Newly Inserted by Presidential Decree No. 23282, Nov. 1, 2011]
| Article 20 (Exceptions to Qualifications for Performing Specialized Construction Works) |
“Cases prescribed by Presidential Decree” in Article 16 (2) 2 of the Act means the following: <Amended by Presidential Decree No. 23869, Jun. 21, 2012; Presidential Decree No. 25358, May 22, 2014> | 1. | Where any of the following constructors has been awarded a contract for specialized construction works for which the relevant new technology or method of construction is utilized (limited to where the estimated construction amount corresponding to the construction works to which the relevant new technology or method of construction is applied is at least 70/100 of the total estimated construction amount): |
| (b) | A constructor who has completed a registration to establish a patent right for a specific method of construction under Article 87 of the Patent Act; |
| (c) | A constructor who has been granted by a patentee an exclusive license on his/her patent right for a specific method of construction under Article 100 of the Patent Act; |
| (d) | A constructor who has been granted by a patentee a non-exclusive license on his/her patent right for a specific method of construction under Article 102 of the Patent Act; |
| 2. | Where a constructor who has registered for the business of executing specialized construction works is awarded a contract for any works which belong to appurtenant works of the specialized construction works having been executed or being executed by him/her under the contract he/she was already awarded, and which corresponds to a specialized works. |
[This Article Newly Inserted by Presidential Decree No. 23282, Nov. 1, 2011]
| Article 21 (Scope, etc. of Appurtenant Works) |
| (1) | The scope of appurtenant works referred to in Article 16 (3) of the Act means the following works: <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 18918, Jun. 30, 2005; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 23282, Nov. 1, 2011> |
| 1. | Subordinate works required for or due to executing the principal works; |
| 2. | Where two or more categories of specialized works are combined, the estimated amount of the works is less than 300 million won, and the estimated amount of the principal works of such specialized works is not less than one half of the total estimated amount of the works, the rest of such works; |
| 3. | Where, of the categories of the construction business shown in attached Table 1, the combined works among those included in a mechanical equipment work business and a gas facility execution business are contracted for by the constructor of the category of business concerning the principal works, the works of the rest of the categories of business. |
| (2) | Deleted. <by Presidential Decree No. 16512, Aug. 6, 1999> |
| Articles 22 through 24 Deleted. <by Presidential Decree No. 16512, Aug. 6, 1999> |
CHAPTER III CONTRACT AND SUBCONTRACT AGREEMENTS
| Article 25 (Details of Contract Agreements on Construction Works) |
| (1) | Matters to be specified in a contract agreement on construction works pursuant to Article 22 (2) of the Act shall be as follows: <Amended by Presidential Decree No. 18822, May 7, 2005; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 21233, Dec. 31, 2008> |
| 1. | Details of construction works; |
| 2. | Amounts of contracts and amounts coming under wages of the contract amounts; |
| 3. | Timing for commencement and completion of construction works; |
| 4. | If an agreement exists concerning advance payment of or payment for completed portion of the contract amounts, the timing, method and amount of the respective payments; |
| 5. | Matters concerning the burden of any loss caused by the discontinuance of construction works, rescission of the contract, or natural disasters; |
| 6. | Matters concerning the modification of amounts of a contract or details of construction works owing to a modification of design, fluctuation of prices, etc.; |
| 7. | Matters concerning the issuance of a guarantee which certifies the payment of the price for a subcontract under Article 34 (2) of the Act (limited to cases of a subcontract agreement); |
| 10. | Matters concerning the amounts required for the subscription to the retirement benefits system for construction workers and their methods of burden, in cases of the construction works to be obliged to subscribe to the retirement benefits system for construction workers under Article 87 (1) of the Act; |
| 11. | Matters concerning the amounts and the industrial accident compensation insurance premiums under the methods of burden of the Industrial Accident Compensation Insurance Act, the employment insurance premiums under the Employment Insurance Act, and other various charges and methods to pay them under the Acts and subordinate statutes in connection with the relevant construction works; |
| 12. | Matters concerning the methods of disposal and recycling of wastes produced from the relevant construction works; |
| 13. | Inspection for delivery and timing therefor; |
| 14. | Timing for payment of contract amounts after completion of construction works; |
| 15. | Matters concerning compensation for damage, such as payment of penalty, interests in arrears, etc., in cases of delay in fulfillment of the contract; |
| 16. | Liability period and methods of warranty against defects; |
| 17. | Matters concerning methods for the settlement of disputes, if any; |
| (2) | Deleted. <by Presidential Decree No. 25152, Feb. 5, 2014> |
| Article 26 (Notification of Entries in Construction Work Books) |
| (1) | A constructor who is contracted for construction work with the contract amount of at least 100 million won shall, pursuant to Article 22 (6) of the Act, notify the owner of the details in the construction work book through the Knowledge Information System of Construction within 30 days from the date the contract for the work is entered into. <Amended by Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 25152, Feb. 5, 2014> |
| (2) | A constructor who has been awarded a subcontract for the work exceeding 40 million won by the constructor under paragraph (1) shall notify the owner of the details in the register of construction work within 30 days from the date when the subcontract has been entered into through the Knowledge Information System of Construction. <Newly Inserted by Presidential Decree No. 20488, Dec. 28, 2007> |
| (3) | Where any change occurs in the matters notified or the need of an additional entry arises, any constructor under paragraphs (1) and (2) shall notify the order-placing person thereof through the Knowledge Information System of Construction within 30 days from the date of such occurrence. <Amended by Presidential Decree No. 20488, Dec. 28, 2007> |
[This Article Newly Inserted by Presidential Decree No. 17740, Sep. 18, 2002]
| Article 26-2 (Clear Statement and Adjustment of Expenses, Such as Insurance Premiums) |
| (1) | Parties to a contract for construction works shall clearly state expenses, such as insurance premiums referred to in Article 22 (7) of the Act (hereafter referred to as "insurance premiums, etc." in this Article), in the detailed statement of the contract amount (including the statement of calculating the subcontract amount; hereafter the same shall apply in paragraph (3)) pursuant to the standards determined and publicly announced by the Minister of Land, Infrastructure and Transport. <Amended by Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 22173, May 27, 2010; Presidential Decree No. 24443, Mar. 23, 2013; Presidential Decree No. 25152, Feb. 5, 2014> |
| (2) | A project owner (including a contractor in cases of a subcontract; hereafter the same shall apply in this Article) may ascertain whether a constructor who has been awarded a contract for such works has born insurance premiums, etc. In such cases, if a project owner deems it necessary, he/she may request such constructor to submit a confirmation demonstrating payment of insurance premiums, etc. |
| (3) | Where insurance premiums for the National Pension under the National Pension Act, insurance premiums for National Health Insurance under the National Health Insurance Act, and long-term care insurance premiums under the Long-Term Care Insurance Act specified in the detailed statement of the contract price exceed the insurance premiums actually paid as a result of confirmation on the details of payment of insurance premiums, etc., the relevant project owner may adjust such excess amount. <Amended by Presidential Decree No. 22173, May 27, 2010> |
[This Article Wholly Amended by Presidential Decree No. 20488, Dec. 28, 2007]
| Article 26-3 (Scope of Public Institutions) |
[This Article Newly Inserted by Presidential Decree No. 25152, Feb. 5, 2014]
| Article 26-4 (Details to Be Notified for Assumption of Contracts) |
"Matters prescribed by Presidential Decree, such as the details of the contracted construction works and contract price" in Article 22-3 (1) of the Act means the following: | 1. | Matters referred to in subparagraphs of Article 25 (1); |
| 2. | Other matters for which the project owner (in cases of a subcontract, referring to the contractor) has awarded a contract. |
[This Article Newly Inserted by Presidential Decree No. 27440, Aug. 4, 2016]
| Article 26-5 (Notification of Assumption of Contracts and Methods of Reply) |
| 1. | A contents-certified mail; |
| 3. | Other methods through which details of the notification and reply and the receipt thereof can be confirmed objectively. |
| (2) | Each notification and reply under paragraph (1) shall be sent to the address (including the electronic mail address or the certified electronic address referred to in paragraph (1) 2 (b)) of the project owner, contractor or subcontractor. |
[This Article Newly Inserted by Presidential Decree No. 27440, Aug. 4, 2016]
| Article 26-6 (Keeping of Written Documents) |
Pursuant to Article 22-3 (6) of the Act, each of project owner, contractor, and subcontractor shall keep the written documents referred to in paragraphs (1) and (2) of the same Article for three years from the date the relevant contracted works or subcontracted works are completed. [This Article Newly Inserted by Presidential Decree No. 27440, Aug. 4, 2016]
| Article 26-7 (Establishment and Operation of Comprehensive Management Systems of Construction Industry Information) |
| (1) | The Minister of Land, Infrastructure and Transport may carry out any of the following affairs for the purpose of an efficient establishment of the comprehensive management systems of construction industry information under Article 24 (3) of the Act and the promotion of their utilization: <Amended by Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
| 1. | Various research and development of the establishment and operation of the comprehensive management systems of construction industry information, and technological support thereto; |
| 2. | Implementation of a joint project for the establishment of the comprehensive management systems of construction industry information; |
| 3. | Standardization of the comprehensive management systems of construction industry information; |
| 4. | Promotion of the joint utilization of information utilizing the comprehensive management systems of construction industry information; |
| 5. | Other matters necessary for establishing and operating the comprehensive management systems of construction industry information. |
| (2) | The Minister of Land, Infrastructure and Transport may organize and operate a consultative organization with a business entity, institution, or organization relating to the construction for the purpose of the efficient establishment and operation of the comprehensive management systems of construction industry information. <Amended by Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
[This Article Newly Inserted by Presidential Decree No. 18918, Jun. 30, 2005]
| Article 27 (Procedures for Requesting Submission of Materials for Comprehensive Management of Construction Industry Information, etc.) |
Where the Minister of Land, Infrastructure and Transport requests the submission of materials under Article 24 (4) of the Act, he/she shall notify in writing the following matters at least 15 days before the deadline of such submission: <Amended by Presidential Decree No. 18918, Jun. 30, 2005; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> | 1. | Grounds for the request of submission; |
| 2. | Deadline of submission; |
| 3. | Details of materials to be submitted; |
| 4. | Types and forms of materials to be submitted; |
| 5. | Method of utilizing materials to be submitted. |
[This Article Newly Inserted by Presidential Decree No. 17740, Sep. 18, 2002]
| Article 28 Deleted. <by Presidential Decree No. 16512, Aug. 6, 1999> |
| Article 29 (Period for Estimate) |
"Certain period prescribed by Presidential Decree" in Article 27 of the Act means the following periods: <Amended by Presidential Decree No. 23282, Nov. 1, 2011> | 1. | In cases of construction work the estimated amount of which is at least three billion won: 20 days or more from the date when an explanation of the construction site has been given; |
| 2. | In cases of construction work the estimated amount of which is at least one billion won: 15 days or more from the date when an explanation of the construction site has been given; |
| 3. | In cases of construction work the estimated amount of which is at least 100 million won: ten days or more from the date when an explanation of the construction site has been given; |
| 4. | In cases of construction work the estimated amount of which is less than 100 million won: five days or more from the date when an explanation of the construction site has been given. |
| Article 30 (Defect Liability Period) |
| (1) | The defect liability period by kind of work provided for in Article 28 (1) of the Act shall be as shown in attached Table 4. <Amended by Presidential Decree No. 26979, Feb. 11, 2016> |
| (2) | Where the defect liability period of construction works is separately determined by a contract agreement under the proviso to Article 28 (3) of the Act, the following matters shall be clearly set forth in the contract agreement: <Newly Inserted by Presidential Decree No. 26979, Feb. 11, 2016> |
| 1. | The defect liability period separately determined and the reason therefor; |
| 2. | The additional fee for defect liability guarantee incurred by the defect liability period separately determined. |
| Article 30-2 (Direct Performance of Construction Works) |
| (1) | "Construction works not exceeding the amount prescribed by Presidential Decree" in the main sentence of Article 28-2 (1) of the Act means construction works, the contract amount of which is less than five billion won. <Amended by Presidential Decree No. 23282, Nov. 1, 2011> |
| (2) | "Ratio prescribed by Presidential Decree" in the main sentence of Article 28-2 (1) of the Act means the ratios as classified in the following: <Amended by Presidential Decree No. 23282, Nov. 1, 2011> |
| 1. | Where the contract amount is less than 300 million won: 50/100; |
| 2. | Where the contract amount is at least 300 million won, but less than one billion won: 30/100; |
| 3. | Where the contract amount is at least one billion won, but less than three billion won: 20/100; |
| 4. | Where the contract amount is at least three billion won, but less than five billion won: 10/100. |
| (3) | "Cases prescribed by Presidential Decree" in the proviso to Article 28-2 (1) of the Act means the following: <Amended by Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 23869, Jun. 21, 2012> |
| 1. | Where a project owner has consented in writing as he/she deems it necessary to enhance the quality of construction works or efficiency in execution of construction works; |
| 2. | Where a contractor subcontracts the portion of his/her contracted construction works for which a patent or a new technology is used to a constructor capable of using the relevant patent or new technology. |
| (4) | Notification of a plan for direct performance of construction works referred to in Article 28-2 (2) of the Act shall be given within 30 days from the date the contract has been entered into, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That where construction works directly performed under Article 28-2 (1) of the Act has met all the following requirements, a direct performance plan of the relevant construction works need not be notified: <Amended by Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24443, Mar. 23, 2013> |
| 1. | A contract amount of construction works shall be less than 40 million won; |
| 2. | A period for construction shall be within 30 days. |
| (5) | Where a person who entered into a contract has notified the consulting engineers of a direct performance plan of construction works supervised by consulting engineers within the deadline under paragraph (4), he/she shall be deemed to have notified the project owner thereof. |
| (6) | A public institution prescribed by Presidential Decree in the main sentence of Article 28-2 (4) means any of the following institutions: <Newly Inserted by Presidential Decree No. 28325, Sep. 19, 2017> |
[This Article Newly Inserted by Presidential Decree No. 18918, Jun. 30, 2005]
| Article 31 (Scope of Blanket Subcontracts) |
| (1) | Where most of the major portions of any construction works is subcontracted to any third constructor under the main sentence of Article 29 (1) of the Act, shall be where, of contracted construction works (where contracted construction works are those for several buildings, referring to construction works for each building), all of the principal works excluding the portions corresponding to the appurtenant works as prescribed in Article 21 (1) are subcontracted. |
| (2) | "Where the constructor plans, manages, and coordinates any construction works contracted to him/her, as prescribed by Presidential Decree" in the proviso to Article 29 (1) of the Act means where a constructor performs the management of workforce, materials, equipment, funds, etc., work management, quality management, safety management, etc. at the site of construction works, as prescribed by the Minister of Land, Infrastructure and Transport, and provide itself with organization, system, etc. therefor. <Newly Inserted by Presidential Decree No. 18918, Jun. 30, 2005; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24443, Mar. 23, 2013> |
| (3) | Where split subcontracts can be awarded to at least two persons under the proviso to Article 29 (1) of the Act shall be the following cases: <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24204, Nov. 27, 2012> |
| 1. | Where contracted construction works are divided by category of business executing specialized work, and each specialized work is subcontracted with the relevant constructor who has registered a category of business executing specialized work, respectively; |
| 2. | Where construction works to be executed on an island or in an isolated mountain area is subcontracted to a small or medium constructor or a cooperator registered pursuant to Article 48 of the Act who resides in the Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Do, or a Special Self-Governing Province (hereinafter referred to as "City/Do") to which such island or are belong. |
| Article 32 (Notice of Subcontract, etc.) |
| (1) | Any notice referred to in the main sentence of Article 29 (4) of the Act shall be made within 30 days from the date of the conclusion of a subcontract or of the consent to putting out to a sub-subcontract as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. The same shall apply to cases where the agreements of such subcontracts, etc. are altered or cancelled. <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 20805, Jun. 5, 2008; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24443, Mar. 23, 2013> |
| (2) | In cases of construction works for which consulting engineers exist, where a person who subcontracted his/her construction work, etc. has notified the consulting engineers within the period referred to in paragraph (1), the owner of such construction work shall be deemed to have been notified thereof. <Amended by Presidential Decree No. 16512, Aug. 6, 1999> |
| (3) | Deleted. <by Presidential Decree No. 16512, Aug. 6, 1999> |
| Article 33 Deleted. <by Presidential Decree No. 18918, Jun. 30, 2005> |
| Article 34 (Inspections, etc. of Propriety of Subcontracts) |
| (1) | “Where the subcontract price falls short of the price computed in the ratio prescribed by Presidential Decree” in Article 31 (1) and (2) of the Act means any of the following: <Amended by Presidential Decree No. 24204, Nov. 27, 2012> |
| 1. | Where the subcontract price is less than 82/100 of the amount that corresponds to the portion of the subcontract out of the contract amount (referring to an amount which includes administrative expenses, profits, and value-added tax in addition to the amount calculated for the portion of the construction works to be subcontracted based on the contracted unit prices (including direct and indirect labor costs, material costs and expenditure) described in the statement of calculating the contract amount made by the contractor; excluding a portion of amount borne by a contractor under related Acts and subordinate statutes, including the cost of material directly paid by a contractor to a subcontractor and the cost incurred in issuing a written payment guarantee of the price for subcontract under Article 34 (3) of the Act); |
| 2. | Where the subcontract price is less than 60/100 of the cost estimated by the project owner out of the construction works that corresponds to the subcontract. |
| (2) | “Public institution prescribed by Presidential Decree” in Article 31 (2) of the Act means a corporation invested or contributed by the State or a local government. |
| (3) | Where a project owner intends to request a change of a subcontractor or of the details of a subcontract under Article 31 (3) of the Act, he/she shall do so in writing within 30 days after receipt of a notice of subcontract under Article 29 (4) of the Act or the date he/she becomes aware that such ground exists. |
| (4) | The Minister of Land, Infrastructure and Transport shall stipulate and publish the criteria that can be utilized in cases of inspecting the work execution capacity of any subcontractor, the propriety, etc. of the details of any subcontract under Article 31 (1) and (2) of the Act. <Amended by Presidential Decree No. 24443, Mar. 23, 2013> |
| (5) | A subcontract inspection committee (hereafter referred to as the “committee” in this Article) referred to in Article 31 (5) of the Act shall be comprised of not more than ten members, including one chairperson and one deputy chairperson. |
| (6) | The chairperson of the committee shall be the head of a project-owning agency (referring to a person designated by the head of a project-owning agency, from among public officials of Grade II or III who belong to the relevant agency in cases of Cities/Dos, and from among executive officers or employees who are of Grade I or higher in cases of public agencies referred to in paragraph (2)), and the deputy chairperson and members shall be appointed or commissioned by the chairperson from among the following persons: |
| 1. | A public official who are in a manager or higher position in the relevant project-owning agency (referring to an executive officer or employee who is of Grade II or higher in cases of public agencies referred to in paragraph (3)); |
| 2. | A person who is a research fellow or in a higher position in a construction-related research institute; |
| 3. | A person who has obtained a doctoral degree in the field of construction and has experience of research or work in the field for at least three years; |
| 4. | A person who is an assistant professor or in a higher level in university (limited to the field of construction); |
| (7) | The terms of office of members who fall under paragraphs (6) 2 through 5 shall be three years, and renewable only one further term. |
| (8) | A meeting of the committee shall be held with the attendance of a majority of its members, and resolutions shall be passed with the concurrence of a majority of the members present. |
| (9) | Article 68-2 shall apply mutatis mutandis to the exclusion, challenge and evasion of a member. <Newly Inserted by Presidential Decree No. 23928, Jul. 4, 2012> |
| (10) | Except as otherwise expressly provided for in this Decree, matters necessary to operate the committee shall be determined by the chairperson through resolutions by the committee. <Amended by Presidential Decree No. 23928, Jul. 4, 2012> |
[This Article Wholly Amended by Presidential Decree No. 23282, Nov. 1, 2011]
| Article 34-2 (Submission of Subcontract Plans) |
| (1) | "Public institution prescribed by Presidential Decree" in the former part of Article 31-2 (1) of the Act means any of the following institutions: <Amended by Presidential Decree No. 23282, Nov. 1, 2011> |
| (2) | "Construction works prescribed by Presidential Decree" in the former part of Article 31-2 (1) of the Act means any of the following: <Amended by Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24443, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (3) | Where any constructor intends to be awarded a contract for any construction works pursuant to Article 31-2 of the Act, he/she shall submit a subcontract plan including the following matters, to a project owner, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: <Amended by Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 22303, Jul. 26, 2010; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24443, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27440, Aug. 4, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| 2. | The following matters concerning the main types of construction and quantities under subparagraph 1: |
| (a) | Methods of, and criteria for, selecting a subcontractor; |
| (b) | The amount of works to be subcontracted (limited to where the subcontracting amount which a person subject to a subcontract intends to be awarded as a subcontract amount is not less than the amount determined and publicly announced by the Minister of Land, Infrastructure and Transport). |
| (4) | Deleted. <by Presidential Decree No. 27440, Aug. 4, 2016> |
| (5) | In any of the following cases, a constructor may modify a subcontract plan submitted pursuant to paragraph (3): <Amended by Presidential Decree No. 27440, Aug. 4, 2016> |
| 1. | Where the subcontracting amount which became different from the amount to be awarded as a subcontract amount referred to in paragraph (3) 2 (b) is simply reflected; |
| 2. | Where the project owner approves the modification in writing, deeming it necessary to improve the quality of construction works or the efficiency of construction works. |
[This Article Newly Inserted by Presidential Decree No. 20488, Dec. 28, 2007]
| Article 34-3 (Disclosure of Contract Data for Subcontracting) |
| (1) | "Public institutions prescribed by Presidential Decree" in Article 31-3 of the Act means any of the following institutions: |
| (2) | Disclosure of contract data for subcontracting under Article 31-3 of the Act shall be made according to the method of publishing contract data for subcontracting on the Internet site of a public institution that has placed an order for the relevant work within 30 days from the date the public institution receives notification of a subcontract, etc. pursuant to the main sentence of Article 29 (4) of the Act. |
[This Article Newly Inserted by Presidential Decree No. 25727, Nov. 14, 2014]
| Article 34-4 (Clear Statement of Amount Incurred in Issuing Payment Guarantee of Subcontract Price) |
| (1) | Deleted. <by Presidential Decree No. 22173, May 27, 2010> |
| (2) | Parties to a contract for construction works shall clearly state the amount incurred in issuing a payment guarantee of the subcontract price under Article 34 (3) of the Act on the statement of contract price calculation pursuant to the criteria determined and publicly announced by the Minister of Land, Infrastructure and Transport. <Amended by Presidential Decree No. 20448, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
| (3) | A project owner may verify whether a contractor performing construction works has used the amount under Article 34 (3) of the Act. In such cases, when the project owner deems it necessary, he/she may request the relevant contractor to submit documents evidencing details of payment of expenses incurred therein. <Amended by Presidential Decree No. 20448, Dec. 28, 2007> |
| (4) | Where the amount clearly stated on the statement for contract price calculation of construction works under Article 34 (3) of the Act exceeds the amount paid by the constructor, a project owner may settle the relevant excess after verifying the payment details of expenses incurred by the constructor under paragraph (3). <Amended by Presidential Decree No. 20448, Dec. 28, 2007> |
| (5) | "Public institution prescribed by Presidential Decree" in Article 34 (7) of the Act means any of the following institutions: <Newly Inserted by Presidential Decree No. 27440, Aug. 4, 2016> |
[This Article Newly Inserted by Presidential Decree No. 18918, Jun. 30, 2005]
| Article 34-5 (Scope of Public Institutions) |
| 2. | and 3. Deleted; <by Presidential Decree No. 25727, Nov. 14, 2014> |
[This Article Newly Inserted by Presidential Decree No. 22173, May 27, 2010]
| Article 34-6 (Grounds for Adjusting Construction Value, etc.) |
| (1) | Deleted. <by Presidential Decree No. 22173, May 27, 2010> |
| (2) | Notification shall be given under Article 36 (2) of the Act within 15 days from the date when the project owner has paid the adjusted construction value to the contractor due to a design change, etc. |
| (3) | Detailed matters necessary for details and methods of giving notification under paragraph (2) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted by Presidential Decree No. 21233, Dec. 31, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
[This Article Newly Inserted by Presidential Decree No. 18918, Jun. 30, 2005]
| Article 34-7 (Means of Requesting Written Document on Additional or Modified Works) |
| (1) | Where a contractor intends to request necessary matters from a subcontractor or to obtain confirmation from the project owner under Article 36-2 (1) of the Act concerning the additional or modified works referred to in the same paragraph (hereinafter referred to as "additional or modified works"), he/she shall do so by any of the following means: |
| 1. | A contents-certified mail; |
| 3. | Other means through which the contents and the receipt of written request and certification can be confirmed objectively. |
| (2) | The request and confirmation under paragraph (1) shall be made to the addresses of the subcontractor and project owner (including electronic mail addresses or certified electronic addresses referred to in paragraph (1) 2 (b)). |
[This Article Newly Inserted by Presidential Decree No. 26979, Feb. 11, 2016]
| Article 34-8 (Types of Unfair Special-Purpose Agreements) |
The types of unfair special-purpose agreements referred to in the latter part of Article 38 (2) of the Act shall be as follows: <Amended by Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24204, Nov. 27, 2012> | 1. | A special-purpose agreement stipulating that no insurance premiums specified in the statement for calculating the amount of a subcontract under Article 22 of the Act be paid to the subcontractor; |
| 2. | A special-purpose agreement stipulating that a contractor unfairly passes on to a subcontractor or makes him/her bear the costs for handling civil appeals, installing temporary facilities, performing additional construction works or managing construction sites, etc., in violation of Article 22 (1) of the Act; |
| 3. | A special-purpose agreement stipulating that the defect liability to be borne by a contractor under Article 28 of the Act is passed on to or borne by a subcontractor or the defect liability is borne beyond the contractual period; |
| 4. | A special-purpose agreement stipulating that there shall be a significant decrease in the price paid to a subcontractor for a subcontract under Article 34 (1) of the Act on the ground that said price is paid in cash or prior to a payment deadline; |
| 5. | A special-purpose agreement stipulating that no advance payment that shall be paid under Article 34 (4) of the Act be paid or no progress payments be paid or the price for a subcontract be decreased on the ground that an advance payment is made; |
| 6. | A special-purpose agreement stipulating that the subcontract price is not adjusted where a contractor receives an adjustment for the construction value from a project owner due to a design change or fluctuations in economic conditions under Article 36 (1) of the Act; |
| 7. | A special-purpose agreement stipulating that the liability for damages that shall be borne by a contractor under Article 44 (1) of the Act be passed on to or borne by a subcontractor. |
[This Article Newly Inserted by Presidential Decree No. 22173, May 27, 2010]
CHAPTER IV EXECUTION AND TECHNICAL MANAGEMENT
| Article 35 (Criteria, etc. for Assignment of Construction Engineers to Construction Sites) |
| (1) | Construction engineers to be assigned to a construction site under Article 40 (1) of the Act shall be those corresponding to the principal item of the relevant construction works, and they shall be assigned thereto at the same time the construction works are commenced. <Amended by Presidential Decree No. 17740, Sep. 18, 2002> |
| (2) | The assignment of construction engineers to a construction site under Article 40 (1) of the Act shall be subject to the criteria for the assignment of construction engineers by scale of expected construction amounts under attached Table 5: Provided, That where the contracting parties to any construction agree on the qualification types, classes, or number of construction engineers to be assigned to a construction site upon considering the characteristics of the construction, their agreement shall apply. |
| (3) | With respect to any of the following construction works, any constructor may assign one construction engineer over three construction sites with consent from the project owner within the scope of not compromising the quality of construction and safety: <Amended by Presidential Decree No. 16063, Dec. 31, 1998; Presidential Decree No. 21233, Dec. 31, 2008; Presidential Decree No. 24204, Nov. 27, 2012> |
| 1. | The following construction works of the same type, the estimated amount of which is less than 500 million won: |
| (a) | Construction works executed in the same Si (including the Special Metropolitan City, Metropolitan Cities and Metropolitan Autonomous Cities), Gun, and Jeju-do; |
| (b) | Construction works in any areas between neighboring Sis (including the Special Metropolitan City, Metropolitan Cities and Metropolitan Autonomous Cities) and Guns, where the project owner deems that no impediment exists to construction execution management or other technical management; |
| 2. | Construction works of the same type newly executed at the site of construction works in the course of execution. |
| (4) | Deleted. <by Presidential Decree No. 16063, Dec. 31, 1998> |
| (5) | If a constructor assigns a construction engineer to a construction site under Article 40 (1) of the Act, he/she shall have the construction engineer obtain confirmation for such assignment from the project owner as to the fact, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24443, Mar. 23, 2013> |
| Article 36 (Buildings Subject to Restrictions on Builders) |
| (1) | "Detached house prescribed by Presidential Decree" in Article 41 (1) 2 (b) of the Act means a home nursery, a communal living house, a local children’s center, or a welfare facility for senior citizens (excluding welfare housing for senior citizens) which is in the form of a detached house described in subparagraph 1 (a) of attached Table 1 of the Enforcement Decree of the Building Act. <Newly Inserted by Presidential Decree No. 23583, Feb. 2, 2012; Presidential Decree No. 29006, Jun. 26, 2018> |
| (2) | “Buildings prescribed by Presidential Decree” in Article 41 (1) 2 (c) of the Act means buildings which are wholly or partially used for the following purposes: <Amended by Presidential Decree No. 17296, Jul. 7, 2001; Presidential Decree No. 18822, May 7, 2005; Presidential Decree No. 19139, Nov. 25, 2005; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 23356, Dec. 8, 2011; Presidential Decree No. 23583, Feb. 2, 2012; Presidential Decree No. 25273, Mar. 24, 2014; Presidential Decree No. 29006, Jun. 26, 2018> |
| 5. | Hospitals (including general hospitals, oriental medical hospitals, and intermediate care hospitals) under the Medical Service Act; |
| 6. | Specialized recuperation facilities, integrated recuperation facilities, and tourist performance places from among tourist lodging facilities or facilities used by tourists under the Tourism Promotion Act; |
[This Article Newly Inserted by Presidential Decree No. 16790, Apr. 18, 2000]
| Article 37 (Buildings Not Subject to Restrictions on Builders) |
"Buildings prescribed by Presidential Decree" in the proviso to Article 41 (1) of the Act means any of the following buildings: <Amended by Presidential Decree No. 18146, Nov. 29, 2003; Presidential Decree No. 18822, May 7, 2005; Presidential Decree No. 19139, Nov. 25, 2005; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 21098, Oct. 29, 2008; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 27444, Aug. 11, 2016> | 1. | Warehouses, storehouses, workshops, compost repository, stable, fish farm, and other buildings similar thereto established for the purposes of agriculture, forestry, livestock industry, or fishery; |
| 2. | Deleted; <by Presidential Decree No. 23583, Feb. 2, 2012> |
[This Article Newly Inserted by Presidential Decree No. 16790, Apr. 18, 2000]
| Article 38 (Public-Use Facilities) |
| 2. | Enshrinement facilities (limited to those, the area of which exceeds 100,000 square meters); |
| 3. | Cemeteries (limited to those, the area of which exceeds 100,000 square meters). |
| 1. | Erosion control facilities installed on a mountainous region or the seashore (limited to those, the area of a mountainous region or a dune on the seashore exceeds ten thousand square meters); |
| 2. | Shore protection facilities, the length of which is at least one kilometer. |
[This Article Newly Inserted by Presidential Decree No. 20488, Dec. 28, 2007]
CHAPTER V RATIONALIZATION OF MANAGEMENT AND ASSISTANCE TO SMALL OR MEDIUM CONSTRUCTORS
| Article 39 (Determination, etc. of Minimum Limit of Construction Amount, etc.) |
| (1) | "Public agencies prescribed by Presidential Decree" in Article 47 (1) of the Act means corporations which the State or a local government has invested in or contributed to. <Newly Inserted by Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 23282, Nov. 1, 2011> |
| (2) | A constructor for whom the Minister of Land, Infrastructure and Transport may set the minimum limit of the amount of construction work under Article 47 (2) of the Act shall be a constructor whose execution capacity of construction works publicly announced under Article 23 (1) of the Act falls under within 3/100 of the constructors who have registered the category of business performing general construction. <Amended by Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
| (3) | The minimum limit of the construction amount as referred to in paragraph (2) shall be the estimated amount of one contraction work which a constructor who has registered the business category of performing general construction works shall not have. <Amended by Presidential Decree No. 20488, Dec. 28, 2007> |
| (4) | Where the Minister of Land, Infrastructure and Transport sets the minimum limit of the amount of a construction work, he/she shall publicly announce such limit and the constructors and construction works subject to such limit in the Official Gazette and enter such limit in the construction business registration booklet. <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 21233, Dec. 31, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
| Article 40 (Guidance on Joint Contracts, etc.) |
Where the Minister of Land, Infrastructure and Transport deems it necessary for maintaining mutually-beneficial cooperative relations among constructors under Article 48 (1) of the Act, he/she may determine and publicly announce the following matters with respect to joint contracts, etc., and provide guidance required for such matters: <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 22173, May 27, 2010; Presidential Decree No. 24443, Mar. 23, 2013> | 1. | Criteria for the type and operation of a joint contract, such as the limit of liability for the execution of works, recognition of work results, etc. between the project owner and joint contractors or between the members of joint contractors; |
| 2. | Recommendations on mutually-beneficial cooperation between constructors; |
| 3. | Criteria for the evaluation of mutually-beneficial cooperation between constructors. |
| Article 41 (Registration of Cooperators) |
| (1) | Where the Minister of Land, Infrastructure and Transport intends to have a constructor registered for the business category of performing general construction works receive registration from his/her cooperators pursuant to Article 48 (2) of the Act, he/she may determine the category of business to be registered, scope of registration, and other matters necessary for registration. <Amended by Presidential Decree No. 20488, Dec. 28, 2007; Presidential decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
| (2) | A constructor registered for the business category of performing general construction works may examine performance experience, performance records and financial structure, etc. of a constructor who intends to make registration with the former as a cooperator pursuant to Article 48 (2) of the Act. <Amended by Presidential Decree No. 20488, Dec. 28, 2007> |
| (3) | Where any registration is made pursuant to Article 48 (2) of the Act, the term of validity of such registration shall be one year, but may be renewable by one year upon the mutual consent of the parties. |
| Article 42 (Matters to Be Observed) |
| (1) | Where registration of a cooperator is made under Article 48 (2) of the Act, a constructor having registered the category of business undertaking general construction who receives such registration and a constructor who makes registration of a cooperator shall determine matters to be observed by each other according to a mutual agreement, and each one of them shall perform them in good faith and in accordance with the principles of trust on equal position. <Amended by Presidential Decree No. 20488, Dec. 28, 2007> |
| (2) | A constructor having registered the category of business undertaking general construction who receives registration pursuant to Article 48 (2) of the Act may support funds, technique, etc. for execution of work by an agreement with a cooperator who has made registration. In such cases, the constructor who has registered the category of business undertaking general construction shall not interfere with the management or affairs of the cooperator on the pretext of such support. <Amended by Presidential Decree No. 20488, Dec. 28, 2007> |
| Article 43 (Special Cases in Subcontract Agreement) |
Where a constructor who has registered the category of business undertaking general construction and has received registration of a cooperator, pursuant to Article 48 (2) of the Act, and the cooperator who has made the registration enter into a blanket subcontract agreement including matters falling under the subparagraphs of Article 25 (1), they may omit in a written subcontract agreement matters which are specified as registered ones. <Amended by Presidential Decree No. 20488, Dec. 28, 2007>
| Article 44 (Annulment of Cooperator's Registration) |
A constructor having registered the category of business undertaking general construction who has received registration or a cooperator who has made registration pursuant to Article 48 (2) of the Act may annul the registration relations where the other party fails to implement the matters to be observed under Article 42. <Amended by Presidential Decree No. 20488, Dec. 28, 2007>
| Article 45 (Investigation into Actual Status, etc. of Constructors) |
| (1) | When the Minister of Land, Infrastructure and Transport or the head of a local government (limited to where it is necessary to deal with affairs entrusted pursuant to Article 86 (1)) has public officials under his/her control investigate into the actual status of management or the examination of materials and facilities pursuant to Article 49 (1) of the Act, he/she shall inform the constructor of the grounds therefor in advance. <Amended by Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
| (2) | Matters necessary for the matters to be observed by the public officials who investigate or inspect under Article 49 (1) of the Act may be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
| (3) | The content of the investigation of management status under Article 49 (7) of the Act shall be the investigation of whether the standards for registration of construction business referred to in Article 10 of the Act are met. <Newly Inserted by Presidential Decree No. 27440, Aug. 4, 2016> |
| (4) | When the Minister of Land, Infrastructure and Transport or the head of a local government intends to conduct an investigation of management status pursuant to Article 49 (7) of the Act, he/she shall notify the relevant constructors of the period and contents of investigation, and the grounds therefor. <Newly Inserted by Presidential Decree No. 27440, Aug. 4, 2016> |
| (5) | Except as otherwise expressly provided for in paragraphs (3) and (4), the Minister of Land, Infrastructure and Transport may determine and publicly announce matters necessary for the investigation of management status. <Newly Inserted by Presidential Decree No. 27440, Aug. 4, 2016> |
[This Article Newly Inserted by Presidential Decree No. 18918, Jun. 30, 2005]
CHAPTER VI ORGANIZATION OF CONSTRUCTORS
| Article 46 (Cooperative Relations between Associations) |
The Association established by constructors pursuant to the provisions of Article 50 (1) of the Act (hereinafter referred to as the "Association") may make use of their construction business each other and jointly carry on their construction business. [This Article Wholly Amended by Presidential Decree No. 16512, Aug. 6, 1999]
| Article 47 (Matters to Be Entered in Articles of Association) |
Any of the following matters shall be entered in the articles of association of the Association under Article 50 (5) of the Act: <Amended by Presidential Decree No. 16512, Aug. 6, 1999> | 3. | Location of the principal office; |
| 5. | Qualifications as a member; |
| 6. | Fixed number, terms of office, and methods to elect officers; |
| 7. | Composition of general meeting and matters to be resolved at such general meeting; |
| 8. | Composition of the board of directors and matters to be resolved at such board of directors; |
| 9. | Matters concerning assets and accounts; |
| 10. | Procedures for changing the articles of association. |
| Article 48 (Supervision over Association) |
The Association shall submit a business plan and a draft budget of income and expenditure to the Minister of Land, Infrastructure and Transport prior to the commencement of each fiscal year. <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013>
| Article 49 (Number of Constructors Required for Consent at Time of Establishment of Association) |
"The number of constructors prescribed by Presidential Decree" in Article 51 (1) of the Act means 1/10 of the constructors. <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 23282, Nov. 1, 2011>
CHAPTER VII CONSTRUCTION-RELATED MUTUAL-AID ASSOCIATIONS
| Article 50 (Matters to Be Entered in Articles of Association) |
The following matters shall be entered in the articles of association of a mutual-aid association (hereinafter referred to as "mutual-aid association") in accordance with Article 54 (5) of the Act: <Amended by Presidential Decree No. 16512, Aug. 6, 1999> | 3. | Location of an office; |
| 4. | Matters concerning amount per share, methods of contributing for such share and calculation of equity; |
| 5. | Matters concerning qualifications for, and entry and secession of members; |
| 6. | Matters concerning assets and accounts; |
| 7. | Matters concerning the general meeting; |
| 8. | Matters concerning the operating committee; |
| 9. | Matters concerning officers and staff; |
| 10. | Matters concerning financing; |
| 11. | Matters concerning business matters and implementation thereof; |
| 12. | Matters concerning the alteration in the articles of association; |
| 13. | Matters concerning the dissolution and the settlement of residual property; |
| 14. | Matters concerning the method of public announcement. |
| Article 51 (Operating Committee) |
| (1) | A mutual-aid association shall establish an operating committee. <Amended by Presidential Decree No. 16512, Aug. 6, 1999> |
| (2) | Each operating committee shall consist of the following members and the number of the members of the operating committee, who are members of a mutual-aid association, shall not exceed a half of the total number of the members of the mutual-aid association: <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 17740, Sep. 18, 2002; Presidential Decree No. 18092, Aug. 21, 2003; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24443, Mar. 23, 2013; Presidential Decree No. 26979, Feb. 11, 2016> |
| 1. | At least 7, but not exceeding 13 persons elected at a general from among the members; |
| 2. | One person designated by the Minister of Economy and Finance from among public officials under his/her jurisdiction; |
| 3. | One person designated by the Minister of Land, Infrastructure and Transport from among public officials under his/her jurisdiction; |
| 4. | The chairperson of an association, who is the largest contributor among the members of the relevant mutual-aid association; |
| 5. | The president of the relevant mutual-aid association; |
| 6. | At least 8, but not exceeding 13 members who fall under any of the following and are commissioned by the Minister of Land, Infrastructure and Transport: |
| (a) | A current or former professor or vice professor at a university or a senior research fellow at a government invested research institute in the major field of the construction industry or finance; |
| (b) | A certified lawyer or public accountant; |
| (c) | A current or former executive officer or a higher-ranking executive officer at the Financial Supervisory Service or a financial institution; |
| (d) | A person who has abundant knowledge and experience in the affairs of mutual-aid association and has served the relevant business for at least two years. |
| (3) | The terms of office of members referred to in paragraph (2) 1 and 6 shall be three years and they may be reelected, and the terms of office for a member to fill a vacancy shall be the remainder of his/her predecessor's term of office. <Amended by Presidential Decree No. 16063, Dec. 31, 1998; Presidential Decree No. 16512, Aug. 6, 1999> |
| (4) | Each operating committee shall have a chairperson and two vice-chairpersons, but the chairperson and vice-chairpersons shall be elected from among and by its members, respectively. <Amended by Presidential Decree No. 26979, Feb. 11, 2016> |
| (5) | The chairperson shall convene the operating committee and preside over it. |
| (6) | Each operating committee shall deliberate and decide on the following matters and may supervise the execution of affairs of the mutual-aid association: <Amended by Presidential Decree No. 16512, Aug. 6, 1999> |
| 1. | Basic policies concerning a business program, and other operation and management of affairs; |
| 2. | Matters concerning a draft budget; |
| 3. | Matters concerning a loan; |
| 4. | Matters concerning the appointment and dismissal of an executive officer; |
| 5. | Other matters determined by the articles of association. |
| Article 52 Deleted. <by Presidential Decree No. 25727, Nov. 14, 2014> |
| Article 53 (Number of Constructors Required for Consent at Time of Establishment of Mutual-Aid Association) |
In Article 55 (1) of the Act, "number of constructors prescribed by Presidential Decree" means 1/3 of the constructors. <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 23282, Nov. 1, 2011>
| Article 54 (Registration) |
| (1) | When the establishment of the mutual-aid association is authorized, a mutual-aid association shall register the following particulars at the seat of its principal office: <Amended by Presidential Decree No. 16512, Aug. 6, 1999> |
| 5. | Date of authorization for establishment; |
| 6. | Total value of investment; |
| 7. | Amount of one unit of investment; |
| 9. | Matters concerning the restriction on a transfer of an investment certificate; |
| 10. | Name and resident registration number of an officer (in cases of a chief director, including an address); |
| 11. | Matters concerning the restriction on the right of representation; |
| 12. | Matters concerning an agent; |
| 13. | Method of public announcement. |
| (2) | Where the mutual-aid association establishes its branch or sub-branch office, etc. (hereinafter referred to as "branch office"), it shall register the following matters within three weeks: <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 20488, Dec. 28, 2007> |
| 1. | At the seat of the principal office, name and seat of the established branch office; |
| 2. | At the seat of a newly-established branch office, matters as prescribed in the above paragraph (1) 1, 2, 4, 10 through 13; |
| 3. | At the seat of an existing branch office, name and seat of the newly established branch office. |
| (3) | Where the mutual-aid association removes its principal office or branch office, it shall register the following particulars within three weeks: <Amended by Presidential Decree No. 16063, Dec. 31, 1998; Presidential Decree No. 16512, Aug. 6, 1999> |
| 1. | Where the principal office is removed to a place within the jurisdiction of another register office, the effect of such removal at the former seat of the principal office and the seat of the branch office, and the particulars as referred to in paragraph (1) at the new seat of the principal office; |
| 2. | Where the branch office is removed to a place within the jurisdiction of another register office, the effect of such removal at the seat of the principal office, the former seat of the branch office and the seat of the other branch offices, and the particulars as referred to in paragraph (2) 2 at the new seat of the branch office; |
| 3. | Where the principal office or branch office is removed from one place to another within the jurisdiction of the same register office, the effect of such removal at the seat of the principal office and branch office. |
| (4) | Where any alteration occurs in any of the particulars (excluding the seat of an office) mentioned in paragraph (1), the registration thereof shall be made within three weeks after the date of such alteration: Provided, That the registration for any alteration in the total value of investments as prescribed in the above paragraph (1) 6 may be made within three months after the expiration of a fiscal year on the basis of the end of each fiscal year. |
| (5) | Where the mutual-aid association closes its branch office, it shall make a registration of the effect of such closing at the seat of the principal office and branch office within three weeks. <Amended by Presidential Decree No. 16512, Aug. 6, 1999> |
| Article 55 (Investment and Partner's Liability) |
| (1) | The total value of investments of the mutual-aid association shall be the total nominal value of accounts for investments contributed by its partners. <Amended by Presidential Decree No. 16512, Aug. 6, 1999> |
| (2) | The amount of each unit of an investment shall be equal. |
| (3) | The mutual-aid association shall issue an investment certificate indicating a partner's investment and deliver it to its partner, under the conditions as prescribed by the articles of association. <Amended by Presidential Decree No. 16512, Aug. 6, 1999> |
| (4) | The liability of a partner shall be limited to the value of his/her investment quota. |
| Article 56 (Subject Matter and Details to Be Guaranteed by Mutual-Aid Associations) |
| (1) | The subject matter of guarantee to be provided by a mutual-aid association under Article 54 (5) of the Act shall be the duties or obligations which a partner bears in the course of running the following businesses: <Amended by Presidential Decree No. 15581, Dec. 31, 1997; Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 18822, May 7, 2005> |
| (2) | The details of each guarantee referred to in Article 56 (1) 1 of the Act shall be as follows: <Amended by Presidential Decree No. 20488, Dec. 28, 2007> |
| 1. | Tender guarantees: To guarantee the performance of duties concerning the payment of a security for the tender which a partner participating in a tender of construction works, etc. bears as the participant in the tender; |
| 2. | Contract guarantees: To guarantee the performance of duties concerning the payment of a contract deposit which a partner bears in connection with the performance of contracted works, etc.; |
| 3. | Work performance guarantees: To bear the duties of performance of contract in place of its partner where he/she fails to perform the contractual duties of contracted works, or to guarantee the payment of a definite amount where he/she does not perform such duties; |
| 4. | Damage guarantee: To guarantee the obligations for the payment of damages for loss sustained by a third person in course of a partner's performing the contracted works, etc.; |
| 5. | Defect liability guarantees: To guarantee the execution of duties concerning repairs of defects which have occurred in connection with management of business, such as construction works, etc. of a partner; |
| 6. | Advance payment guarantees: To guarantee the obligation for return of advance payment to be received by a partner in connection with contracted works, etc.; |
| 7. | Subcontract guarantees: To guarantee the obligations corresponding to those referred to in subparagraphs 1 through 6 which a partner bears in connection with works, etc. which he/she intends to subcontract for, or subcontracts for. |
| (3) | "Guarantees prescribed by Presidential Decree" in Article 56 (1) 1 of the Act means the following guarantees: <Amended by Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24616, Jun. 17, 2013> |
| 1. | Guarantees of authorization and permission; |
| 2. | Guarantees of materials purchase; |
| 4. | Guarantees of tax payment; |
| 5. | Guarantees of subcontract price payment; |
| 6. | Deleted; <by Presidential Decree No. 27440, Aug. 4, 2016> |
| 8. | Other guarantees, which are determined by the articles of association, of the performance of property duties which a partner bears in connection with the construction business carried on by himself/herself. |
| (4) | Each mutual-aid association may determine and enforce contractual terms and conditions with regard to the details, scope, conditions, etc. of various guarantees to be given thereby. <Amended by Presidential Decree No. 16512, Aug. 6, 1999> |
| Article 56-2 (Profit-Making Business of Mutual Aid Association) |
"Profit-making business prescribed by Presidential Decree" in Article 56 (2) 2 of the Act means the following business: <Amended by Presidential Decree No. 20947, Jul. 29, 2008; Presidential Decree No. 23282, Nov. 1, 2011> [This Article Newly Inserted by Presidential Decree No. 20488, Dec. 28, 2007]
| Article 57 (Guarantee Limits) |
| (1) | The overall guarantee limit up to which each mutual-aid association may provide a guarantee pursuant to Article 54 (5) of the Act shall be 35 times the aggregate amount of investment and reserve funds, and the Minister of Land, Infrastructure and Transport may publicly announce the guarantee limit of each mutual-aid association in consideration of the financial soundness and guarantee risks of individual mutual-aid associations: Provided, That where it is guaranteed by a guarantee or insurance of a financial institution, insurance company or any other similar institution, or by taking other security, such guarantees shall not be included in the guarantee limit of the mutual-aid association. <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 19139, Nov. 25, 2005; Presidential Decree No. 22173, May 27, 2010; Presidential Decree No. 24443, Mar. 23, 2013> |
| (2) | In determining the guarantee limit pursuant to paragraph (1), investments and reserve funds shall be applied on the basis of the settled accounts of the end of the year preceding each business year: Provided, That if, during the business year, the capital has been increased or assets have been revaluated under the Assets Revaluation Act, it shall be applied on the basis of investments and reserve funds at the time the increase of capital or revaluation of assets has been finished. <Amended by Presidential Decree No. 18822, May 7, 2005> |
| (3) | The limit by category of guarantee up to which each mutual-aid association may provide a guarantee with respect to its partners shall be determined, in consideration of the accident rates by category of guarantee, and the credit evaluation of the partners (including corporations, etc. referred to in Article 56 (2) of the Act). <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 19139, Nov. 25, 2005> |
| (4) | Where a mutual-aid association determines the limit by the categories of guarantees pursuant to paragraph (3), it shall notify the Minister of Land, Infrastructure and Transport of the limit so determined. <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
| Article 58 (Provision and Use of Credit Information) |
| (1) | Where it is necessary in connection with the business to be run, each mutual-aid association may provide data concerning credit information of its partners or related debtor to the credit information concentration institution permitted pursuant to the Credit Information Use and Protection Act or a credit information company permitted pursuant to the same Act, or use its or his/her data. <Amended by Presidential Decree No. 16063, Dec. 31, 1998; Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 18822, May 7, 2005; Presidential Decree No. 21765, Oct. 1, 2009; Presidential Decree No. 26517, Sep. 11, 2015> |
| (2) | No mutual-aid association shall use or divulge any credit information data referred to in paragraph (1) for any purpose other than for business purposes. <Amended by Presidential Decree No. 16512, Aug. 6, 1999> |
| Article 59 (Entry of Change of Investment Certificate Holder) |
| (1) | Where any partner or a person who was a partner intends to transfer his/her quotas pursuant to Article 59 (1) of the Act, he/she shall be subject to the entry of a change of an investment certificate holder from the mutual aid association under the conditions as prescribed by the articles of association. <Amended by Presidential Decree No. 16512, Aug. 6, 1999> |
| (2) | Where the mutual-aid association disposes of the quotas acquired he/she by causes as referred to in Article 60 (1) 2 through 5 of the Act, it shall make an entry of a change into the mutual-aid association of the investment certificate holder, and then shall dispose thereof. <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 17740, Sep. 18, 2002> |
| Article 60 (Appropriation of Legal Liability Reserves, etc.) |
| (1) | Under Article 63 (1) of the Act, a mutual-aid association shall appropriate, according to the types of guarantees, legal liability reserves for the outstanding balance of guarantees as at the end of every business year to cover the payments on debtor's behalf contingent upon the satisfaction of the conditions of surety contract as a fulfillment of the obligation arising from the guarantee contract. <Amended by Presidential Decree No. 16512, Aug. 6, 1999> |
| (2) | Under Article 63 (1) of the Act, a mutual-aid association shall appropriate contingency reserves at the end of every business year in order to ensure financial soundness in any crisis situation. <Amended by Presidential Decree No. 23282, Nov. 1, 2011> |
| (3) | and (4) Deleted. <by Presidential Decree No. 23282, Nov. 1, 2011> |
| Article 61 (Funds to Prepare for Payment of Guarantee Deposit) |
In order to prepare for the payment of guarantee deposit under Article 67 (3) of the Act, the mutual-aid association shall hold in cash, or a deposit, etc. to be immediately encased, funds for preparing for the payment of such guarantee deposit at least equivalent to five percent of the sum total of investments and reserve funds. <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 25727, Nov. 14, 2014>
| Article 62 (Fee, Interest, etc.) |
| (1) | The mutual-aid association may collect, from its partners (including corporations, etc. referred to in Article 56 (2) of the Act), a guarantee fee, interest of a loan, a discount charge of a bill, and a user fee. <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 19139, Nov. 25, 2005> |
| (2) | The rates of a guarantee fee, interest of a loan, and discount of a bill to be charged under paragraph (1) shall be subject to the approval of the Minister of Land, Infrastructure and Transport. <Amended by Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
| Article 63 (Investigation, etc. of Situations of Execution) |
| (1) | Where it is deemed necessary for investigating into the situations of execution of works pursuant to Article 64 (1) of the Act, the mutual-aid association may request a supervisor or guarantee creditor of such works to furnish data concerning an execution method, process, materials, etc. <Amended by Presidential Decree No. 16512, Aug. 6, 1999> |
| (2) | Where the mutual-aid association intends to state its opinion to partners pursuant to Article 64 (1) of the Act, it shall be made in writing: Provided, That if it is required to correct errors urgently, each mutual-aid association may state its opinion first orally. <Amended by Presidential Decree No. 16512, Aug. 6, 1999> |
| Article 63-2 (Investigation and Inspection) |
| (1) | Investigation or inspection of the Financial Services Commission under Article 65 (2) of the Act shall be limited to cases where the Minister of Land, Infrastructure and Transport makes a request with specific reasons why investigation or inspection is necessary. <Amended by Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 21214, Dec. 31, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
| (2) | Where the Financial Services Commission conducts investigation or inspection pursuant to paragraph (1), it shall notify the Minister of Land, Infrastructure and Transport of the findings thereof without delay. In such cases, it may request correction if any matter to be corrected exits. <Amended by Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 21214, Dec. 31, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
[This Article Newly Inserted by Presidential Decree No. 20488, Dec. 28, 2007]
| Article 64 Deleted. <by Presidential Decree No. 26979, Feb. 11, 2016> |
| Article 64-2 Deleted. <by Presidential Decree No. 27440, Aug. 4, 2016> |
| Article 64-3 (Statement of Costs for Issuing Written Guarantees of Price Payment for Rental of Construction Machinery) |
| (1) | The costs for issuing a written guarantee of price payment for rental construction machinery under Article 68-3 (3) of the Act shall be calculated in consideration of material costs, direct labor costs and expenditure described in the statement of the contract price calculation (including the statement of subcontract price calculation). In such cases, specific calculation methods shall be based on the standards determined and publicly announced by the Minister of Land, Infrastructure and Transport. |
| (2) | A project owner may verify if the contractor or the subcontractor properly uses the costs referred to in Article 68-3 (3) of the Act for the relevant usage. In such cases, if deemed necessary, he/she may request the relevant contractor or subcontractor to submit evidential documents which state the spending details of such costs. |
| (3) | Where the project owner verifies the spending details of the said costs submitted by the relevant contractor or subcontractor pursuant to paragraph (2), and finds out the amount specified in the statement of the contract price calculation under in Article 68-3 (3) of the Act is greater than that spent by the contractor or subcontractor, he/she may settle the difference between the former and the latter. |
| (4) | "Public institution prescribed by Presidential Decree" in Article 68-3 (6) of the Act means any of the following institutions: <Newly Inserted by Presidential Decree No. 27440, Aug. 4, 2016> |
[This Article Newly Inserted by Presidential Decree No. 24616, Jun. 17, 2013]
CHAPTER VIII CONSTRUCTION DISPUTE CONCILIATION COMMITTEE
| Article 65 (Function of Committee) |
"Other disputes on matters prescribed by Presidential Decree" in Article 69 (3) 6 of the Act means the following: <Amended by Presidential Decree No. 22173, May 27, 2010; Presidential Decree No. 23282, Nov. 1, 2011> | 1. | A dispute between a contractor or subcontractor and a third person on the price of materials and the rent of construction machines; |
| 2. | A dispute on a transfer of the construction business; |
| Article 66 (Application for Conciliation) |
Any person who intends to obtain outcomes from the conciliation of disputes under the subparagraphs of Article 69 (3) of the Act shall file a written application (including electronic documents) with the Construction Dispute Conciliation Committee (hereinafter referred to as the "Committee") under Article 69 (1) of the Act, specifying the purport of such application and the details of the case, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Presidential Decree No. 18312, Mar. 17, 2004; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 22173, May 27, 2010; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 23928, Jul. 4, 2012; Presidential Decree No. 24443, Mar. 23, 2013; Presidential Decree No. 25152, Feb. 5, 2014>
| Article 66-2 Deleted. <by Presidential Decree No. 25727, Nov. 14, 2014> |
| Article 67 (Duties of Chairperson) |
| (1) | The chairperson shall take charge of general affairs of, and represent the Committee. |
| (2) | If the chairperson is unable to discharge his/her duties for inevitable causes, the vice chairperson shall act on behalf of him/her, and if both the chairperson and the vice chairperson are absent by accident, the member designated by the chairperson shall act on behalf of the chairperson. |
| Article 68 (Members of Committee) |
| (1) | Public officials who become Committee members pursuant to Article 70 (2) of the Act shall be the following persons, who are designated by the head of the relevant agency: <Amended by Presidential Decree No. 16063, Dec. 31, 1998; Presidential Decree No. 19513, Jun. 12, 2006; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 20805, Jun. 5, 2008; Presidential Decree No. 24443, Mar. 23, 2013; Presidential Decree No. 25152, Feb. 5, 2014> |
| 1. | One public official of Grade III of the Ministry of Land, Infrastructure and Transport or one public official in general service belonging to the Senior Civil Service Corps thereof; |
| 2. | One public official in Grade III of the Ministry of Economy and Finance, the Ministry of Government Legislation and the Fair Trade Commission respectively, or one public official in general service belonging to the Senior Civil Service Corps of each of the aforementioned three organizations. |
| (2) | Deleted. <by Presidential Decree No. 25152, Feb. 5, 2014> |
| (3) | Deleted. <by Presidential Decree No. 25727, Nov. 14, 2014> |
| Article 68-2 (Exclusion, Challenge, and Evasion of Members) |
| (1) | Where a member of the Committee falls under any of the following cases, he/she shall be excluded from the performance of his/her duties: |
| 1. | Where a member or his/her current or ex-spouse becomes a party to the relevant dispute or is in the relationship of a joint rightful person or a responsible person with a party to the relevant dispute; |
| 2. | Where a member is or was of kinship with the party of the relevant dispute; |
| 3. | Where a member has made a statement or given an opinion on the relevant dispute; |
| 4. | Where a member participated or has participated in the relevant dispute as an agent of any party; |
| 5. | Where a member has participated in disposition or non-performance which caused the relevant dispute. |
| (2) | Where a cause of exclusion arises, the Committee shall determine the exclusion ex officio or at the request of any party. |
| (3) | Where there are circumstances that the fair execution of duties of a member is difficult to expect, the party may make an application for challenge of such member to the Committee and it shall determine the challenge when it deems the application for challenge proper. |
| (4) | Where any ground provided for in paragraph (1) or (3) arises to a member, the member shall voluntarily evade from the performance of duties for such case. <Amended by Presidential Decree No. 23928, Jul. 4, 2012> |
[This Article Newly Inserted by Presidential Decree No. 20488, Dec. 28, 2007]
| Article 68-3 (Dismissal, etc. of Members) |
| (1) | Where a member of the Committee referred to in Article 70 (2) of the Act falls under any of the following cases, the Minister of Land, Infrastructure and Transport may dismiss such member from his/her office: |
| 1. | Where he/she becomes incapable of carrying out his/her duties due to mental disorder; |
| 2. | Where he/she commits any misdeed in connection with his/her duties; |
| 3. | Where he/she is deemed unsuitable for a member due to delinquency of duties, injury to dignity, or any other reason; |
| 4. | Where he/she fails to refrain himself/herself despite that he/she falls under a case set forth in any of the subparagraphs of Article 68-2 (1); |
| 5. | Where he/she expresses his/her intention of the difficulty for him/her to carry out his/her duties. |
| (2) | A person who has designated a member under Article 68 (1) may withdraw the designation, when such member falls under any of the subparagraphs of paragraph (1). |
[This Article Newly Inserted by Presidential Decree No. 26844, Dec. 31, 2015]
| Article 69 (Request for Appraisal, etc.) |
| (1) | If it is deemed necessary for examining the case for which a conciliation of a dispute is requested, the chairman may request any appraisal, diagnosis, test, etc. to the relevant specialized institution. |
| (2) | Any institution which is requested to make an appraisal, diagnosis, test, etc. under paragraph (1), shall submit the result thereof within 20 days after receiving a request. In such case, if there is any inevitable reason why it is impossible to submit such result within 20 days, it shall notify the Committee of the reason and the period for submission thereof. |
| Article 69-2 Deleted. <by Presidential Decree No. 25727, Nov. 14, 2014> |
| Article 70 (Procedures for Hearing Opinions) |
| (1) | Where the Committee intends to allow the parties to dispute conciliation, persons interested in the dispute or related experts to attend its meeting and present their opinions, or intends to hear their opinions pursuant to Article 75 (2) of the Act, it shall notify them in writing seven days before the meeting is held. <Amended by Presidential Decree No. 25152, Feb. 5, 2014> |
| (2) | Where the parties to dispute conciliation, parties interested in the dispute or related experts who have received notification under paragraph (1) cannot attend a meeting of the Committee for inevitable circumstances, they may submit their opinions in writing (including electronic documents) beforehand. <Amended by Presidential Decree No. 18312, Mar. 17, 2004; Presidential Decree No. 25152, Feb. 5, 2014> |
| (3) | Where a party to dispute conciliation, party interested in the dispute, or related expert who has received notification under paragraph (1) fails to attend a meeting without good cause, and to submit his/her opinion even in writing (including electronic documents), he/she shall be deemed to have renounced his/her opportunity to state his/her opinion. <Amended by Presidential Decree No. 18312, Mar. 17, 2004; Presidential Decree No. 25152, Feb. 5, 2014> |
| Article 71 (Conciliation Division) |
| (1) | When the chairman receives a request for conciliation under Article 66, he/she may, if necessary, refer a case for which a conciliation of dispute is requested to a conciliation division under Article 76 (1) of the Act. |
| (2) | The provisions of Articles 69 and 70 shall be applicable mutatis mutandis to the affairs of the conciliation division as referred to in paragraph (1). |
| Article 72 (Prepayment and Accurate Account of Expenses) |
| (1) | Where the Committee intends to have the expenses required for dispute conciliation prepaid under Article 79 (2) of the Act, it shall notify it to the obligor for such payment in writing with the required expenses, particulars, and prepayment place and period fixed. |
| (2) | Where the Committee has notified the prepayment of expenses under paragraph (1), if the obligor fails to prepay the expenses within the fixed period, the Committee may defer the conciliation on the dispute concerned. |
| (3) | Where the Committee received expenses in advance under Article 79 (2) of the Act, the Committee shall prepare a statement of accounts concerning the prepaid amount and expenses as referred to in paragraph (1) and notify the requesting person of the statement within five days after the date when the Committee has prepared a proposal of conciliation on the dispute and presented such proposal to the party, or when it has notified the party of a refusal or suspension of conciliation. |
| Article 73 (Scope of Expenses) |
The scope of expenses to be borne by a requesting person or a party of a dispute conciliation under Article 79 (1) of the Act shall be as follows: | 1. | Expenses required for appraisal, diagnosis and test; |
| 2. | Expenses required for selection of witness and evidence; |
| 3. | Expenses required for inspection and investigation; |
| 4. | Other expenses required for conciliation, such as recording, stenographic record, interpretation, etc. |
| Articles 74 and 75 Deleted. <by Presidential Decree No. 20488, Dec. 28, 2007> |
| Article 76 (Secretary and Clerks) |
| (1) | A secretary and a clerk shall be appointed in the Committee in order to manage the affairs thereof. |
| (2) | The Minister of Land, Infrastructure and Transport shall appoint a secretary and a clerk of the Committee from among public officials belonging to the Ministry of Land, Infrastructure and Transport. <Amended by Presidential Decree No. 25152, Feb. 5, 2014> |
Members and experts concerned who attend a meeting of the Committee may receive allowances within budget: Provided, That this shall not apply in cases where a member who is a public official attends the meeting in direct connection with affairs under his/her control.
| Article 78 (Operational Rules) |
Matters other than those prescribed by this Decree, which are necessary for the operation of the Committee, shall be determined by the chairperson through a decision of the Committee.
CHAPTER IX ORDER OF CORRECTION, ETC.
| Article 79 Deleted. <by Presidential Decree No. 23282, Nov. 1, 2011> |
| Article 79-2 (Cases of Temporarily Falling Short of Registration Standards) |
"Cases prescribed by Presidential Decree" in the proviso to subparagraph 3 of Article 83 of the Act means any of the following cases: <Amended by Presidential Decree No. 18092, Aug. 21, 2003; Presidential Decree No. 18822, May 7, 2005; Presidential Decree No. 19422, Mar. 29, 2006; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 26979, Feb. 11, 2016; Presidential Decree No. 27115, Apr. 29, 2016; Presidential Decree No. 27299, Jun. 30, 2016> | 1. | Where the period which falls short of the registration standards, caused by death, disappearance, or retirement of a person who has the technical capability provided for in attached Table 2, does not exceed 50 days; |
| 1-2. | Where the registration standards are not met due to childcare leave (referring to the childcare leave provided for in Article 19 of the Equal Employment Opportunity and Work-Family Balance Assistance Act) of a person who has the technical capability provided for in attached Table 2: Provided, That it shall apply only to a type of business which has at least three persons who meet the standard for technical capability, and only one person out of the three shall be acknowledged as the aforementioned condition; |
| 2. | Where the period which falls short of the registration standards, caused by a decrease in the total amount of assets of a corporation subject to application of the proviso to Article 542-8 (1) of the Commercial Act as of the end of its recent business year, does not exceed 50 days; |
| 3. | Where falling under any of the following items among the cases where the capital standards referred to in Article 13 (1) 1 has not met: |
| (b) | Where deemed that there exists no hindrances in carrying out a rehabilitation plan, and the relevant constructor has been implementing such rehabilitation plan after receiving a decision on the closure of rehabilitation procedures from a court; |
| (c) | Where a creditor financial institution council has made a resolution on the commencement of joint management procedures by the credit financial institution council under the Corporate Restructuring Promotion Act and such procedures are in progress; |
| (d) | Where the period which falls short of the capital standard does not exceed 50 days within one year from the date of registration of the construction business under Article 9 (1) of the Act: Provided, That cases where a constructor register an additional type of business shall be excluded herefrom. |
[This Article Newly Inserted by Presidential Decree No. 17740, Sep. 18, 2002]
| Article 79-3 (Public Institutions Subject to Notification of Fact of Offenses) |
"Public institutions prescribed by Presidential Decree" in Article 83-2 (3) of the Act means corporations funded or contributed by the State or a local government. <Amended by Presidential Decree No. 23282, Nov. 1, 2011> [This Article Newly Inserted by Presidential Decree No. 20488, Dec. 28, 2007]
| Article 80 (Standards, etc. for Suspension of Business or Imposition of Penalty Surcharges) |
| (1) | A period of suspension of business or amount of a penalty surcharge depending on the category and degree of violations referred to in Article 84 of the Act shall be as stipulated in attached Table 6. |
| (2) | The Minister of Land, Infrastructure and Transport may increase or decrease a period of suspension of business or an amount of a penalty surcharge pursuant to paragraph (1) within 1/2 of such period or amount, in consideration of the motives, details and frequency of the relevant violation, and characteristics and method of a tender for the construction related to such violation: Provided, That the Minister of Land, Infrastructure and Transport shall not decrease such period or amount where the relevant violations fall under Articles 82 (1) 3 and 82-2 (1) and (2) of the Act. <Amended by Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24443, Mar. 23, 2013> |
| (3) | Where a period of suspension of business or an amount of a penalty surcharge is increased pursuant to paragraph (2), the total period of suspension of business or the total amount of a penalty surcharge shall not exceed the period and amount provided for in Articles 82, 82-2 and 83 of the Act. <Newly Inserted by Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 23282, Nov. 1, 2011> |
<<Enforcement Date: May 25, 2012>> Article 80 (Limited to amendments to Article 82-2 of the Act)
| Article 81 (Imposition and Payment of Penalty Surcharge) |
| (1) | When the Minister of Land, Infrastructure and Transport intends to impose a penalty surcharge pursuant to Article 82 and 82-2 of the Act, he/she shall notify payment of such penalty surcharge with clearly stated classification of the act of violation and the amount of the penalty surcharge in writing. <Amended by Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24443, Mar. 23, 2013> |
| (2) | A person who is notified of payment of a penalty surcharge under the provisions of paragraph (1) shall pay the penalty surcharge to a collection agency designated by the Minister of Land, Infrastructure and Transport within 20 days from the date of receipt of such notice: Provided, That when he/she is unable to pay such penalty surcharge within the specified period due to natural disasters or other inevitable reasons, he/she may pay the penalty surcharge within seven days from the date when such reasons cease to exist. <Amended by Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
| (3) | A collection agency that collects a penalty surcharge pursuant to paragraph (2) shall issue a receipt to the payer. |
| (4) | When a collection agency collects a penalty surcharge pursuant to paragraph (2), it shall notify the Minister of Land, Infrastructure and Transport thereof without delay. <Amended by Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
| (5) | The penalty shall not be paid in installments. |
[This Article Newly Inserted by Presidential Decree No. 16512, Aug. 6, 1999]
| Article 81-2 (Categories of Construction Business Allowed to Succeed to Position of Constructor) |
“Circumstances prescribed by Presidential Decree” in Article 85-2 (1) 2 means any of the following: | 1. | Where a person whose registration of engineering business or construction business has been cancelled files for registration of engineering and construction business; |
| 2. | Where a person whose registration of engineering and construction business has been cancelled files for registration of engineering business or construction business. |
[This Article Newly Inserted by Presidential Decree No. 24204, Nov. 27, 2012]
| Article 82 (Institutions Subject to Joint Ownership of Information) |
"Financial institutions or credit information agencies prescribed by Presidential Decree" in the former part of Article 85-3 (2) of the Act means the following: <Amended by Presidential Decree No. 21765, Oct. 1, 2009; Presidential Decree No. 22493, Nov. 15, 2010; Presidential Decree No. 23282, Nov. 1, 2011> | 1. | Mutual aid associations; |
[This Article Newly Inserted by Presidential Decree No. 20488, Dec. 28, 2007]
CHAPTER X SUPPLEMENTARY PROVISIONS
| Article 82-2 (Public Institutions Subject to Inspection and Confirmation) |
"Public institutions prescribed by Presidential Decree" in Article 86-2 of the Act means corporations invested or contributed by the State or a local government. <Amended by Presidential Decree No. 23282, Nov. 1, 2011> [This Article Newly Inserted by Presidential Decree No. 18918, Jun. 30, 2005]
| Article 82-3 (Cases Exempt from Publication of List of Habitually Late-Paying Construction Contractors) |
"Cases where grounds prescribed by Presidential Decree exist, such as cases where the publication of a list is ineffective due to the declaration of death or unknown whereabouts of a construction contractor who habitually delays payments" in the proviso to Article 86-4 (1) of the Act means any of the following cases: | 1. | Where the construction contractor who habitually delays payments (hereinafter referred to as "habitually late-paying construction contractor") under Article 86-4 (1) of the Act dies; |
| 3. | Where a habitually late-paying construction contractor settles the arrears before the end of the period for providing an explanation under Article 86-4 (3) of the Act; |
| 4. | Where the Minister of Land, Infrastructure and Transport deems that it is necessary to exclude habitually late-paying construction contractors from the publication of a list following further deliberation by the Deliberative Committee on the Publication of the List of Habitually Late-paying Construction Contractors (hereinafter referred to as the "Deliberative Committee") under Article 86-4 (2) of the Act pursuant to Article 82-6 because he/she has paid part of the amount of delayed payments before the end of the period for providing an explanation under Article 86-4 (3) of the Act, and has explained a specific plan to settle the arrears and a plan to raise funds to the relevant Deliberative Committee; |
| 5. | Other cases where the Minister of Land, Infrastructure and Transport deems the publication of a list of habitually late-paying construction contractors ineffective, following deliberation by the Deliberative Committee. |
[This Article Newly Inserted by Presidential Decree No. 25727, Nov. 14, 2014]
| Article 82-4 (Methods for Publication of List of Habitually Late-Paying Construction Contractors) |
| (1) | The list under Article 86-4 (1) of the Act shall be published in the Official Gazette, or on the Internet homepage of the Ministry of Land, Infrastructure and Transport, or the Integrated Construction Industry Information Network for three years. |
| 1. | Name, age, firm name and address of a habitually late-paying construction contractor (in cases of a corporation, referring to the name, age and address of the representative of the corporation, and the name and address of the corporation); |
| 2. | History of measures taken against habitually late-paying construction contractors and details of the amount of delayed payments for the last three years from the year immediately preceding the publication of the list. |
[This Article Newly Inserted by Presidential Decree No. 25727, Nov. 14, 2014]
| Article 82-5 (Organization and Operation of Deliberative Committee) |
| (1) | The Deliberative Committee shall be comprised of not exceeding nine members, including one chairperson. |
| (2) | The Vice Minister of Land, Infrastructure and Transport shall become the chairperson of the Deliberative Committee, and the following persons shall become members: |
| 1. | Not more than three persons appointed by the Minister of Land, Infrastructure and Transport, from among public officials in general service belonging to the Senior Civil Service Corps of the Ministry of Land, Infrastructure and Transport; |
| 2. | Not more than five persons commissioned by the Minister of Land, Infrastructure and Transport, from among any of the following: |
| (a) | A person who holds or held office in a university as an associate professor or higher ranking, or in a government-funded research institution as a senior researcher or higher ranking, who is specialized in the construction industry or financial field; |
| (b) | A person qualified as an attorney-at-law; |
| (c) | Other persons who have profound knowledge of and extensive experience in the construction industry or financial field, who have engaged in affairs in the relevant field for at least two years. |
| (3) | The term of office of members commissioned by the Minister of land, Infrastructure and Transport pursuant to paragraph (2) 2 shall be three years: Provided, That the term of office of a member who fills a vacancy shall be the remainder of his/her predecessor's term. |
| (4) | The chairperson of the Deliberative Committee shall preside over its affairs. |
| (5) | Where the chairperson of the Deliberative Committee is unable to perform any of his/her duties due to inevitable circumstances, a member appointed by the chairperson shall perform his/her duties on his/her behalf. |
| (6) | The Deliberative Committee shall open a meeting with the attendance of a majority of its incumbent members, and pass resolutions with the affirmative vote of a majority of the members present. |
| (7) | In addition to matters provided for in paragraphs (1) through (6), matters necessary for the organization and operation of the Deliberative Committee shall be determined by the Minister of Land, Infrastructure and Transport, following deliberation by the Deliberation Committee. |
[This Article Newly Inserted by Presidential Decree No. 25727, Nov. 14, 2014]
| Article 82-6 (Redeliberation on Publication of List of Habitually Late-Paying Construction Contractors) |
Where a habitually late-paying construction contractor desires to give an explanation pursuant to Article 86-4 (3) of the Act, the Minister of Land, Infrastructure and Transport shall require the Deliberative Committee to redeliberate on whether to publish the list. [This Article Newly Inserted by Presidential Decree No. 25727, Nov. 14, 2014]
| Article 82-7 (Exclusion, Challenge, Evasion, etc. of Members) |
| (1) | Where a member of the Deliberative Committee falls under any of the following, he/she shall be excluded from deliberation: |
| 1. | Where the member or his/her current or former spouse becomes a party interested (where the party interested is a corporation, organization, etc., its executive officer shall be included therein; hereafter the same shall apply in this Article) in the relevant matter, or is a joint obligee or a joint obligator with the party interested in the matter; |
| 2. | Where the member is or was a relative of a party interested in the relevant matter; |
| 3. | Where the member, or a corporation, organization, etc. to which he/she belongs is or was an agent of a party interested in the relevant matter. |
| (2) | Where a party interested in the relevant matter is in a situation that it is difficult for him/her to expect a fair deliberation or decision from a member of the Deliberative Committee, he/she may file an application for challenge with the Deliberative Committee, and the Deliberative Committee shall determine whether to challenge the member. In such cases, the member subject to application for challenge shall not participate in such decision. |
| (3) | Where a member of the Deliberative Committee constitutes grounds for exclusion under the subparagraphs of paragraphs (1), he/she shall voluntarily evade from all deliberation or decisions on the relevant matter. |
| (4) | Where a member of the Deliberative Committee fails to evade from deliberation or decision notwithstanding the fact that he/she falls under any of the subparagraphs of paragraph (1), the Minister of Land, Infrastructure and Transport may dismiss the relevant member. |
[This Article Newly Inserted by Presidential Decree No. 25727, Nov. 14, 2014]
| Article 83 (Construction Works Subject to Joining Retirement Mutual Aid for Construction Workers) |
| (1) | "Construction works prescribed by Presidential Decree" in Article 87 (1) of the Act means the following: <Amended by Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 17347, Aug. 25, 2001; Presidential Decree No. 18092, Aug. 21, 2003; Presidential Decree No. 18146, Nov. 29, 2003; Presidential Decree No. 18736, Mar. 8, 2005; Presidential Decree No. 18822, May 7, 2005; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 22173, May 27, 2010; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 27444, Aug. 11, 2016> |
| 1. | Construction works, the order for which is placed by the State or a local government and the estimated amount of which (referring to the estimated amount of relevant construction works in cases of the construction works, a contract for which is renewed every year based on a long-term contract referred to in Article 21 of the Act on Contracts to Which the State Is a Party; hereafter in subparagraph 2, the same shall apply) exceeds 300 million won; |
| 2. | Construction works, the order for which is placed by a corporation established with equity investment from the State or a local government and the estimated amount of which exceeds 300 million won; |
| 2-2. | Construction works, the order for which is placed by a corporation invested by a corporation under subparagraph 2 at least 50 percent of paid-in capital and the estimated amount of which exceeds 300 million won; |
| 5. | Construction works (including where construction plans have been approved pursuant to Article 15 of the Housing Act) of collective housing (referring to collective housing provided for in the Enforcement Decree of the Building Act) with at least 200 housing units and composite buildings (including a building connected to a number of buildings) with the purpose other than residence; |
| 7. | Construction works, the estimated amount of which exceeds ten billion won. |
| (2) | Parties to a contract agreement of construction works under Article 87 (2) of the Act shall calculate an amount of money required for joining the retirement pension system for construction workers and specify it in the statement of contract price calculation pursuant to the standards determined and publicly announced by the Minister of Land, Infrastructure and Transport. <Newly Inserted by Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
| (3) | Where a contractor subcontracts construction works referred to in paragraph (1), he/she shall specify the amount required for the subscription for the retirement pension system for construction workers in the statement of subcontract price calculation of construction works corresponding to such subcontracted portion: Provided, That this shall not apply if the contractor enters into a mutual-aid contract in which the construction worker employed by the subcontractor is the person obtaining such mutual-aid pursuant to the former part of Article 10 (1) of the Act on the Employment Improvement, etc. of Construction Workers. <Amended by Presidential Decree No. 18092, Aug. 21, 2003; Presidential Decree No. 18822, May 7, 2005; Presidential Decree No. 20488, Dec. 28, 2007> |
| (4) | Any project owner under paragraph (1) 1, 2, 2-2, 4, 5, 6 or 7 or a person who has approved any construction plan under subparagraph 3, 5 or 7 of the same paragraph (hereafter in this Article referred to as "ordering person, etc.") may verify whether a constructor performing the relevant construction works has subscribed to the retirement pension system for construction workers under Article 87 (1) of the Act. <Amended by Presidential Decree No. 16063, Dec. 31, 1998; Presidential Decree No. 18092, Aug. 21, 2003; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 22173, May 27, 2010> |
| (5) | Where it is deemed necessary for verification under paragraph (4), the ordering person, etc. may request the relevant constructor to submit a written verification of payment of mutual aid premiums to the Korean Construction Workers Mutual Fund: Provided, That where the ordering person, etc. can verify the written verification of payment of mutual aid premiums through the Knowledge Information System of Construction, such verification may take the place of the presentation of the written verification. <Newly Inserted by Presidential Decree No. 20488, Dec. 28, 2007> |
| (6) | Where the amount stated in the statement of the contract price calculation for construction works under Article 87 (2) of the Act exceeds the mutual-aid contribution actually paid by the constructor as a result of verifying the particulars of his/her payment, the ordering person, etc. shall make an adjustment of the contract amount by the sum of excess. <Newly Inserted by Presidential Decree No. 16063, Dec. 31, 1998; Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 17740, Sep. 18, 2002; Presidential Decree No. 20488, Dec. 28, 2007> |
| Article 83-2 (Training and Management of Specialized Construction Human Resources) |
| (1) | When the Minister of Land, Infrastructure and Transport intends to formulate policies for training and management, etc. of construction experts pursuant to Article 87-2 (1) of the Act, he/she shall listen to the opinion of the head of a relevant central administrative agency. <Amended by Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
| (2) | "Matters prescribed by Presidential Decree" in Article 87-2 (2) 4 of the Act means matters concerning the securing of funds required for training and management of construction experts and the establishment and designation of a specialized institute for training construction experts. |
| (3) | Where the Minister of Land, Infrastructure and Transport makes a request for necessary data for training, management, etc. of construction experts pursuant to Article 87-2 (5) of the Act, he/she shall specify its purpose, use and deadline for presentation, etc. <Amended by Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
[This Article Newly Inserted by Presidential Decree No. 20488, Dec. 28, 2007]
| Article 84 (Calculating Method, etc. of Wages Excluded from Object of Seizure) |
| (1) | The amount equivalent to the wage referred to in Article 88 (2) of the Act shall be calculated by summing up wages specified in the detailed statement of calculation from among the contract amount of the construction work. <Amended by Presidential Decree No. 16512, Aug. 6, 1999> |
| (2) | The owner (including the contractor in cases of a subcontract) of a construction work shall specify the wage as referred to in paragraph (1) in the contract or subcontract document. |
| Article 85 (Preferential Treatment to Acquirer of Technical Qualification) |
| Article 86 (Delegation, etc. of Authority) |
| (1) | The Minister of Land, Infrastructure and Transport shall delegate the following authority with respect to constructors, etc. to Mayors/Do Governors pursuant to Article 91 (1) of the Act: <Amended by Presidential Decree No. 16063, Dec. 31, 1998; Presidential Decree No. 16512, Aug. 6, 1999; Presidential Decree No. 17740, Sep. 18, 2002; Presidential Decree No. 18918, Jun. 30, 2005; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24443, Mar. 23, 2013; Presidential Decree No. 25727, Nov. 14, 2014; Presidential Decree No. 26979, Feb. 11, 2016; Presidential Decree No. 27440, Aug. 4, 2016> |
| 1. | Confirmation of the following items concerning a business category (excluding the categories of businesses determined and publicly announced by the Minister of Land, Infrastructure and Transport) of performing specialized construction works: |
| (a) | Receipt of an application for registration of a construction business and confirmation of details of the application under Article 9 of the Act; |
| (b) | Receipt of an application to alter details in a construction business registration certificate or a construction business registration booklet and confirmation of details of the application under Article 9-2 of the Act; |
| (c) | Receipt of an application for transfer of a construction business, merger of corporations and succession to a corporation and confirmation of details of the application under Article 17 of the Act; |
| 2. | Registration of a construction business and receipt of a report on matters concerning the standards for registration of a construction business under Article 9 of the Act; |
| 3. | Delivery and re-delivery of a construction business registration certificate or a construction business registration booklet under the Article 9-2 of the Act; |
| 3-2. | Measures for compulsory removal, etc. of advertising articles against a person who violates the limit for a sign under Article 11 of the Act; |
| 4. | Receipt of a report on the transfer of a construction business, merger of corporations, and succession to a construction business under Article 17 of the Act; |
| 5. | Receipt of a report on the discontinuance of a construction business under Article 20-2 of the Act and the cancellation of registration of a construction business; |
| 6. | Deleted; <by Presidential Decree No. 20488, Dec. 28, 2007> |
| 7. | Deleted; <by Presidential Decree No. 16512, Aug. 6, 1999> |
| 8. | Orders or directions to make corrections under Article 81 of the Act (excluding orders or directions to make corrections under paragraph (2) 2); |
| 9-2. | Suspension of business, the imposition of a penalty surcharge or the cancellation of registration of a construction business under Article 82-2 of the Act; |
| 10. | Cancellation of the registration of a construction business or the suspension of a construction business under Article 83 of the Act; |
| 10-2. | Public announcement and notification of cancellation, etc. of registration of a construction business under Article 85-3 of the Act; |
| 12. | Imposition and collection of administrative fines under Article 101 of the Act (excluding the imposition and collection of administrative fines under paragraph (2) 3 of this Article and subparagraph 10 of Article 99 of the Act); |
| 12-2. | Input and public announcement of matters concerning construction administration such as registration, etc. of a construction business into the Knowledge Information System of Construction under Articles 10 and 11; |
| 13. | Preparation and keeping of a register of a construction business under Article 12 (1); |
| 14. | Deleted. <by Presidential Decree No. 20805, Jun. 5, 2008> |
| (2) | The Minister of Land, Infrastructure and Transport shall delegate the following authority over construction contractors to the head of a Regional Land Management Office pursuant to Article 91 (1) of the Act: <Newly Inserted by Presidential Decree No. 25727, Nov. 14, 2014> |
| 1. | Reporting, investigations and inspections to determine whether a subcontract under Article 49 (1) of the Act is appropriate, or is performed conscientiously; |
| 2. | Orders or directions to make corrections under subparagraph 9 of Article 81 of the Act (only where necessary to conduct affairs delegated pursuant to subparagraph 1); |
| (3) | Deleted. <by Presidential Decree No. 20488, Dec. 28, 2007> |
| Article 87 (Entrustment, etc. of Authority) |
| (1) | In accordance with Article 91 (3) of the Act, the Minister of Land, Infrastructure and Transport shall entrust the following authority to institutions designated and published by the Minister of Land, Infrastructure and Transport under paragraph (2): <Amended by Presidential Decree No. 17740, Sep. 18, 2002; Presidential Decree No. 18918, Jun. 30, 2005; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 20805, Jun. 5, 2008; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24443, Mar. 23, 2013; Presidential Decree No. 27440, Aug. 4, 2016> |
| 1. | Confirmation of the following items concerning business categories of performing general construction works and specialized construction works determined and publicly announced by the Minister of Land, Infrastructure and Transport: |
| (a) | Receipt of an application for registration of construction business and confirmation of details of the application under Article 9 of the Act; |
| (b) | Receipt of an application for alteration of details in a construction business registration certificate or a construction business registration booklet and confirmation of details of the application under Article 9-2 of the Act; |
| (c) | Receipt of an application for transfer of construction business, merger of corporations and succession of a corporation and confirmation of details of the application under Article 17 of the Act; |
| 2. | Evaluation and publication of constructors' execution capacity and dealing with reporting of the results, etc. of construction works under Article 23 of the Act; |
| 3. | Evaluation and publication of construction project managers' capability to manage construction projects and the receipt of their construction management performance, etc. under Article 23-2 of the Act; |
| 4. | Construction and operation of the Knowledge Information System of Construction Industry and the request for the submission of data required for such systems under Article 24 of the Act; |
| 5. | Affairs concerning the assessment of cooperative relations among construction business operators under Article 48 (4) of the Act; |
| 6. | Request for submission of data to ascertain whether a constructor meets the criteria for registration, confirmation of the contents thereof, and confirmation of other matters that the Minister of Land, Infrastructure and Transport deems necessary while investigating the actual conditions of a constructor under Article 49 of the Act; |
| 8. | Entry of the limit of the amount of construction work in a registration pocketbook of construction business under Article 39 (4). |
| (2) | Institutions entrusted with the authority upon designation by the Minister of Land, Infrastructure and Transport under paragraph (1) shall be the following institutions equipped with the workforce and equipment necessary to perform the entrusted affairs: <Amended by Presidential Decree No. 17740, Sep. 18, 2002; Presidential Decree No. 18822, May 7, 2005; Presidential Decree No. 18918, Jun. 30, 2005; Presidential Decree No. 20488, Dec. 28, 2007; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 20977, Aug. 26, 2008; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 24443, Mar. 23, 2013> |
| 2. | A mutual-aid association; |
| 4. | A corporation incorporated with permission from the Minister of Land, Infrastructure and Transport pursuant to Article 32 of the Civil Act for activation of management of construction business; |
| 5. | Deleted; <by Presidential Decree No. 23282, Nov. 1, 2011> |
| 6. | A corporation incorporated with permission from the Minister of Land, Infrastructure and Transport under Article 32 of the Civil Act for the establishment and operation of the Knowledge Information System of Construction Industry; |
| 7. | A corporation incorporated with permission from the Minister of Land, Infrastructure and Transport under Article 32 of the Civil Act for the promotion of cooperation among organizations related to the construction business. |
| (3) | Where the Minister of Land, Infrastructure and Transport designates any institution entrusted with the authority under paragraphs (1) and (2), he/she shall prescribe the details of the entrusted authority, methods of exercising such authority and other necessary matters and publish them in the Official Gazette. <Amended by Presidential Decree No. 17740, Sep. 18, 2002; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
| (4) | Any institution entrusted with the authority to evaluate constructors' capability to execute construction works and publish it under paragraph (1) 1 or to evaluate capability of construction project managers to manage construction projects and publish it under paragraph (1) 1-2 shall notify the Minister of Land, Infrastructure and Transport of the results of the exercise of such authority within five days from the date of the publication. <Amended by Presidential Decree No. 17740, Sep. 18, 2002; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
| (5) | Where the Minister of Land, Infrastructure and Transport deems it specifically necessary to smoothly exercise the authority entrusted under paragraphs (1) and (2), he/she may subsidize some of expenses incurred in exercising the entrusted authority within budgetary limits. <Amended by Presidential Decree No. 17740, Sep. 18, 2002; Presidential Decree No. 20722, Feb. 29, 2008; Presidential Decree No. 24443, Mar. 23, 2013> |
[This Article Wholly Amended by Presidential Decree No. 16512, Aug. 6, 1999]
| Article 87-2 (Processing of Personally Identifiable Information) |
| (1) | Where it is inevitable in order to conduct the following affairs, the Minister of Land, Infrastructure and Transport (including persons to whom the authority of the Minister of Land, Infrastructure and Transport has been delegated or entrusted pursuant to Article 91 (1) and (3) of the Act) may process data including resident registration numbers or alien registration numbers under Article 19 of the Enforcement Decree of the Personal Information Protection Act: <Amended by Presidential Decree No. 27960, Mar. 27, 2017; Presidential Decree No. 29006, Jun. 26, 2018> |
| (a) | Receipt of applications for modification of entries in a certificate of registration of construction business or construction business pocket book and confirmation of the details of applications under Article 9-2 (2) of the Act; |
| (b) | Re-issuance of a certificate of registration of construction business or construction business pocket book under Article 9-2 (3) of the Act; |
| 2-2. | Affairs concerning the education on construction business ethics and practice under Article 9-3 of the Act; |
| 3. | Affairs concerning the acceptance of reports on the transfer of construction business, corporate merger or inheritance under Article 17 of the Act; |
| 4. | Affairs concerning the acceptance of reports on the closure of construction business and the cancellation of registration of construction business under Article 20-2 of the Act; |
| 4-2. | Appraisal and public announcement of the execution capacity of a constructor under Article 23 of the Act; |
| 4-3. | Appraisal and public announcement of the construction management capacity of a construction project manager under Article 23-2 of the Act; |
| 5. | Affairs concerning the total management of construction industry information under Article 24 of the Act; |
| 7. | Affairs concerning the formulation of policies concerning the training and management of construction professionals and requesting the submission of necessary data under Article 87-2 of the Act. |
[This Article Newly Inserted by Presidential Decree No. 25532, Aug. 6, 2014]
| Article 87-3 (Re-Examination of Regulation) |
The Minister of Land, Infrastructure and Transport shall examine the appropriateness of the following matters every three years, counting from each base date specified in the following (referring to the period that ends on the day before the base date of every third year) and shall take measures, such as making improvements: <Amended by Presidential Decree No. 25727, Nov. 14, 2014>
| 1. | Criteria for registration of construction businesses under Article 13 and attached Table 2: January 1, 2014; |
| 2. | Deleted; <by Presidential Decree No. 27751, Dec. 30, 2016> |
| 2-2. | Deleted; <by Presidential Decree No. 28471, Dec. 12, 2017> |
| 2-3. | Period for estimation under Article 29: January 1, 2015; |
| 3. | Period of defect liability by type of construction works under Article 30 and attached Table 4: January 1, 2014; |
| 4. | Direct performance of construction works under Article 30-2: January 1, 2014; |
| 5. | Scope of lump sum subcontracts under Article 31: January 1, 2014; |
| 5-2. | Notification of subcontracts, etc. under Article 32: January 1, 2015; |
| 6. | Examination, etc. of the appropriateness of subcontracts under Article 34: January 1, 2014; |
| 6-2. | Types of unfair special-purpose agreements under Article 34-7: January 1, 2015; |
| 7. | Buildings for which restrictions are imposed on builders under Article 36: January 1, 2014; |
| 8. | Buildings for which restrictions are not imposed on builders under Article 37: January 1, 2014; |
| 9. | Facilities used by many people under Article 38: January 1, 2014. |
[This Article Wholly Amended by Presidential Decree No. 25050, Dec. 30, 2013]
CHAPTER XI PENALTY PROVISIONS
| Article 88 (Scope of Main Facilities) |
"Facilities prescribed by Presidential Decree" in Article 93 (1) of the Act means any of the following facilities: <Amended by Presidential Decree No. 18146, Nov. 29, 2003; Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 27444, Aug. 11, 2016> | 1. | Overpasses, underpasses, airstrips, cableways, dams, and the outer, harbor traffic and mooring facilities of the harbor facilities; |
| 2. | Airport building, station building, automobile passenger terminals, combined passenger facilities, general hospitals, shopping facilities, tourist accommodation facilities and audience assembly facilities, the total floor area of which is not less than 5,000 square meters; |
| 3. | Other buildings of 16 or more stories: Provided, That the collective housing as prescribed in subparagraph 3 of Article 2 of the Housing Act shall be excluded. |
| Article 89 (Standards for Imposition of Administrative Fines) |
[This Article Wholly Amended by Presidential Decree No. 22903, Apr. 14, 2011]
ADDENDA
Article 1 (Enforcement date)
This Decree shall enter into force on the date of its promulgation: Provided, That the provisions of Article 61 shall enter into force on July 1, 1998, and the provisions of Article 83, on January 1, 1998. Article 2 (Time Limit of Application on Criteria for License of Part of General Construction Business)
The provisions of Article 13 (1) 2 (a) on the issuance of a license for an engineering or building work business shall be applied until December 31, 1998. Article 3 (Repeal of Other Acts and Subordinate Statutes)
The following Presidential Decrees shall be repealed, respectively:
| 1. | Enforcement Decree of the Construction Guarantee Act; |
| 2. | Enforcement Decree of the Korea Specialty Contractor Financial Cooperative Act. |
Article 4 (Transitional Measures on Existing Constructors)
| (1) | Any person who obtained a license or made a registration for the construction business entered in the left column of the following table pursuant to relevant Acts and subordinate statutes including the previous Construction Business Act, etc. before this Decree enters into force, shall be considered to have obtained a license or made a registration for the construction business entered in the right column of the same table. |
| Construction business under the previous provisions | Construction business under this Decree | | Landscaping business which is special construction business | Landscaping business
| | Structural steel installation business which is special construction business | Structural steel installation business | | Dredging business which is special construction business | Dredging business | | Facility construction business which is specialized construction business | Mechanical construction business | | Elevator installation business which is specialized construction business | Elevator installation business | | City gas facility construction business (class 1) | Gas facility construction business (class 1) | | City gas facility construction business (class 2) | Gas facility construction business (class 2) | | Liquified petroleum gas facility construction business (class 1) | Gas facility construction business (class 2) | | City gas facility construction business (class 3) | Gas facility construction business (class 3) | | Liquified petroleum gas facility construction business (class 2) | Gas facility construction business (class 3) | | City gas facility construction business (class 4) | Gas facility construction business (class 4) | | Liquified petroleum gas facility construction business (class 3) | Gas facility construction business (class 4) | | City gas facility construction business (class 5) | Gas facility construction business (class 5) | | Liquified petroleum gas facility construction business (class 4) | Gas facility construction business (class 5) | | Ondol construction business | Ondol construction business |
|
| (2) | Any person who obtained a license or made a registration for the construction business pursuant to the previous provisions at the time this Decree enters into force, but who fails to meet the criteria for a license or registration of the construction business under Articles 13 (1), 14 (2) and 16 (1), shall satisfy the requirements suitable for the criteria for a license or registration pursuant to this Decree and report it to a license or registration office of the construction business concerned, until December 31, 1997: Provided, That any person, being the previous special construction businessman, who obtained a license for a steel materials installation work business and dredging work business and who financed a construction mutual-aid association, shall be considered to have financed according to this Decree, notwithstanding the provisions of subparagraph 2 (d) of the remarks of the Table 2. |
| (3) | Any constructor who may contract for works included in the contents of affairs of an industrial equipment work business and cableway installation work business pursuant to the previous provisions at the time when this Decree enters into force, may, notwithstanding the provisions of the attached Table 1 of this Decree, contract for works included in contents of the industrial equipment work business or cableway installation work business without license of either of such businesses, until December 31, 1997. |
Article 5 (Transitional Measures on Contents of Contract Agreement)
A written contract agreement which was entered into according to the previous provisions at time when this Decree enters into force, shall be considered to be suitable for this Decree, notwithstanding the revised provisions of Article 25 (1). Article 6 (Transitional Measures on Public Notice of Execution Capacity)
Before the execution capacity is appraised and publicly notified pursuant to Article 27 for the first time after this Decree enters into force, the limit amount of a contract decided and publicly notified pursuant to the previous provisions shall be considered to be the execution capacity appraised and publicly notified pursuant to this Decree. Article 7 (Transitional Measures on Term of Operating Member and Guarantee Affairs of Mutual-Aid Association)
| (1) | Any operating member of each mutual-aid association appointed pursuant to Article 14 (2) 1 of the previous Construction Guarantee Act and subparagraph 1 of Article 11-2 of the Enforcement Decree of the Korea Specialty Contractor Financial Cooperative Act at the time when this Decree enters into force, shall be considered to have been appointed pursuant to Article 51 (2) 1, and notwithstanding paragraph (3) of the same Article, hold his qualification until the term of office expires pursuant to the previous provisions. |
| (2) | All guarantee affairs which each mutual-aid association manages pursuant to the previous Construction Guarantee Act and Enforcement Decree thereof, and the previous Korea Specialty Contractor Financial Cooperative Act and Enforcement Decree thereof at the time when this Decree enters into force, shall be managed pursuant to the previous provisions, notwithstanding the provisions of Article 56, until the procedures of any alteration in the Articles of each mutual-aid association is concluded. |
Article 8 (Transitional Measures on Member of Construction Business Dispute Conciliation Committee)
Any member of the Construction Business Dispute Conciliation Committee pursuant to the previous provisions at the time when this Decree enters into force, shall be considered to be a member of the Central Construction Dispute Conciliation Committee pursuant to Article 68 (1) of this Decree. Article 9 Omitted.
Article 10 (Relation with Other Acts and Subordinate Statutes)
In a case where other Acts and subordinate statutes cite the Enforcement Decree of the Construction Guarantee Act, the Enforcement Decree of the Korea Specialty Contractor Financial Cooperative Act, or the provisions thereof at the time when this Decree enters into force, if this Decree includes the provisions corresponding to them, this Decree or the corresponding provisions of this Decree shall be considered to have been cited in lieu of the previous provisions.
ADDENDA <Presidential Decree No. 15581, Dec. 31, 1997>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 1998. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Presidential Decree No. 15598, Dec. 31, 1997>
This Decree shall enter into force on January 1, 1998.
ADDENDA <Presidential Decree No. 16063, Dec. 31, 1998>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measures concerning Adjustment of Category of Construction Business) A construction business entered in the left column of the following table registered pursuant to the previous provisions at the time this Decree enters into force shall be considered to be registered as a construction business entered in the right column of the same table. |
| Construction business under the previous provisions | Construction business under the provisions of this Decree | | Specific heat using equipment and apparatus installation business (class 1) | Heating system installation business (class 1) | | Specific heat using equipment and apparatus installation business (class 2) | Heating system installation business (class 1) | | Specific heat using equipment and apparatus installation business (class 3) | Heating system installation business (class 2) | | Specific heat using equipment and apparatus installation business (class 4) | Heating system installation business (class 2) | | Specific heat using equipment and apparatus installation business (class 5) | Heating system installation business (class 3) | | Ondol construction business | Heating system installation business (class 2) |
|
ADDENDA <Presidential Decree No. 16512, Aug. 6, 1999>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Constructors)
| (1) | Any person who is granted with a license or a registration of the construction business in the left column of the following table at the time of enforcing this Decree shall be deemed to be granted with the registration of the construction business in the right column of the same table. |
| Construction business under the previous provisions | Construction business under the provisions of this Decree | | Interior construction business | Interior construction business | | Gas facility construction business (class 1) | Gas facility construction business (class 1) | | Gas facility construction business (class 2) | Gas facility construction business (class 1) | | Gas facility construction business (class 3) | Gas facility construction business (class 1) | | Gas facility construction business (class 4) | Gas facility construction business (class 2) | | Gas facility construction business (class 5) | Gas facility construction business (class 3) |
|
| (2) | Any person who holds the registration of the business of installing gas facilities (Class A through Class C) under the previous provisions at the time of enforcing this Decree and is found to be unfit for the registration of the construction business under the amended provisions of Articles 13 (1) and 16 (1), and the attached Table 2 shall satisfy requirements for registration standards prescribed by this Decree by December 31, 2000. |
Article 3 (Transitional Measures concerning Association and Mutual-Aid Association)
Any association or any mutual-aid association established pursuant to the previous provision at the time of enforcing this Decree shall be deemed to be established in conformity with the requirements as prescribed in the amended provisions of Article 49 or 53. Article 4 (Transitional Measures concerning Warranty Liability Period)
The warranty liability period for a construction work which is contracted at the time of enforcing this Decree shall be dealt with according to the previous provisions notwithstanding the amended provisions of the attached Table 4.
Article 5 (Transitional Measures concerning Posting of Construction Engineers in Site)
Any construction work which is contracted at the time of enforcing this Decree shall be dealt with according to the previous provisions notwithstanding the amended provision of the attached Table 5.
Article 6 Omitted.
ADDENDA <Presidential Decree No. 16514, Aug. 6, 1999>
Article 1 (Enforcement date)
This Decree shall enter into force on August 9, 1999.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 16790, Apr. 18, 2000>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 16798, May 1, 2000>
Article 1 (Enforcement date)
This Decree shall enter into force on May 1, 2000.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 17296, Jul. 7, 2001>
Article 1 (Enforcement date)
This Decree shall enter into force on July 8, 2001.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 17347, Aug. 25, 2001>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 13 (1) 1-2 shall enter into force one month after the date of its promulgation. |
| (2) | (Term of Validity of Criteria for Construction Business Registration concerning Confirmation Note of Assumable Amount and Offices) The amended provisions of Article 13 (1) 1-2 concerning the confirmation note of assumable amount and those of the attached Table 2 concerning offices shall be valid not later than the date on which 3 years elapse from the enforcement date of this Decree. |
| (3) | (Term of Validity and Special Cases of Criteria for Construction Business Registration concerning Tree Growing Lands) The portion of tree growing lands of the landscape gardening business and landscape planting business from among the amended provisions concerning the facilities and equipment on the attached Table 2, shall be valid not later than December 31, 2005. In such case, notwithstanding the relevant amended provisions, any of the following classifications shall govern not later than December 31, 2004: |
| 1. | From the date of promulgation to December 31, 2001: 50,000 square meters or more of the tree growing lands; |
| 2. | From January 1, 2002 to December 31, 2002: 40,000 square meters or more of the tree growing lands; |
| 3. | From January 1, 2003 to December 31, 2003: 35,000 square meters or more of the tree growing lands; |
| 4. | From January 1, 2004 to December 31, 2004: 30,000 square meters or more of the tree growing lands. |
| (4) | (Application Example to Construction Works Subject to Subscription for Retirement Benefits System for Construction Workers) The amended provisions of Article 83 (1) 1 and 2 shall apply from the construction works first ordered after the enforcement of this Decree. |
| (5) | (Transitional Measures concerning Previous Constructors) The constructors who fall short of the amended provisions of the construction business registration criteria under Article 13 (1) 1-2 and the attached Table 2 at the time of enforcement of this Decree, shall meet the relevant amended provisions within 6 months from the enforcement date of this Decree. |
ADDENDA <Presidential Decree No. 17740, Sep. 18, 2002>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Applicable Cases concerning Notification of Entries in Construction Work Book) The amended provisions of Article 26 shall apply to the construction works on which the contract agreement is concluded on or after January 1, 2003, on condition that such provisions shall, until December 31, 2003, apply to the construction works the amount of whose contract is at least three hundred million won. |
| (3) | (Transitional Measures on Report of Matters concerning Standards for Construction Business Registration) Notwithstanding the amended provisions of Article 12-2, any constructor, for whom at least two years and six months have passed since the date his construction business was registered, at the time of enforcement of this Decree, shall make a report of matters concerning the standards for the construction business registration under Article 9 (4) of the Act within seven months from the enforcement date of this Decree. |
| (4) | (Transitional Measures on Assignment of Construction Engineers to Construction Site) With respect to the construction works on which the contract agreement is concluded prior to the enforcement date of this Decree, the previous provisions shall apply, notwithstanding the amended provisions of the attached Table 5. |
ADDENDA <Presidential Decree No. 18092, Aug. 21, 2003>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 82 shall enter into force on September 1, 2003. Article 2 (Application Example concerning Work Subject to Subscription to Retirement Benefits System for Construction Workers)
The amended provisions of Article 83 (1) shall apply, starting with the work for which a bidding is published or approval for its project schedule is granted on or after January 1, 2004. Article 3 (Transitional Measures concerning Mandatory Employment of Current Career Officers)
Any person who has his general construction business registered at the time of enforcement of this Decree shall be governed by the previous provisions on or before December 31, 2003, notwithstanding the amended provisions of Article 13 (1) 6 and subparagraph 1 of Article 79-2. Article 4 (Transitional Measures concerning Composition of Operating Committee of Mutual-Aid Association)
Any mutual-aid association that is in conflict with the composition standards for the operating committee of the mutual-aid association under the amended provisions, with the exception of each subparagraph, of Article 51 (2) at the time of enforcement of this Decree shall make the total number of members of the operating committee, who are members of the mutual-aid association, not more than a half of the total number of the members of the mutual-aid association within 3 months from the date of enforcement of this Decree. Article 5 (Transitional Measures concerning Publication of Business Suspension or Registration Cancellation of Constructor)
The publication of the suspension of business or the cancellation of registration against any constructor shall be governed by the previous provisions on or before December 31, 2003, notwithstanding the amended provisions of Article 82. In this case, the publication may be also posted on the information and communication network in accordance with the amended provisions of the same Article. Article 6 (Transitional Measures concerning Existing Constructor)
| (1) | Any person who registers his construction business indicated on the left column of the following Table in accordance with the previous provisions at the time of enforcement of this Decree shall be deemed to register his construction business indicated on the right column of the same Table. |
| Construction business under the previous provisions | Construction business under the provisions of this Decree | ° Plastering, waterproofing business
° Masonry business | Plastering, waterproofing, masonry business | ° Window construction business
° Metal construction business
° Greenhouse construction business | Metal structure, window construction business | ° Roofing work, sheet metal work business
° Building fabrication business | Roofing work, sheet metal work and building fabrication business |
|
| (2) | Any person who registers his construction business in accordance with the previous provisions and falls short of the standards for registering the construction business provided for in the amended provisions of the attached Table 2 at the time of enforcement of this Decree shall meet the requirements provided for in the amended provisions on or before December 31, 2004: Provided, That any person who falls short of the standards for facility and equipment from among the standards for the registration of railway and track work business shall meet the requirements provided for in the same amended provisions on or before December 31, 2003. |
| (3) | In the event that any person who has his windows and doors work business registered under the previous provisions at the time of enforcement of this Decree registers his indoor construction work business on or before December 31, 2003, the previous record of his wooden windows and doors work shall be deemed the record of his indoor construction work business. |
ADDENDA <Presidential Decree No. 18146, Nov. 29, 2003>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 30, 2003. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDUM <Presidential Decree No. 18312, Mar. 17, 2004>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 18736, Mar. 8, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 18822, May 7, 2005>
| (1) | (Enforcement Date) This Decree shall enter into force one month after the date of its promulgation. |
| (2) | (Effective Period of Construction Business Registration Criteria for Offices) The amended provisions of the attached Table 2 on offices shall be effective not later than the date on which three years elapse from the enforcement date of this Decree. |
| (3) | (Application Example of Confirmation Note of Warrantable Amount and of Construction Business Registration Criteria on Offices) The amended provisions of Article 13 (1) 1-2 and of the attached Table 2 shall apply starting from the portion of filing application for construction business registration first after enforcement of this Decree. |
| (4) | (Transitional Measures concerning Previous Construction Business Operator) Construction business operators falling short of registration criteria for construction business under the amended provisions of Article 13 (1) 1-2 and of the attached Table 2 shall endeavor to satisfy the same amended provisions within six months from the enforcement date of this Decree. |
ADDENDA <Presidential Decree No. 18918, Jun. 30, 2005>
| (1) | (Enforcement Date) This Decree shall enter into force on July 1, 2005: Provided, That the amended provisions of Articles 21 (1) 2, 26-2, 30-2, 34-2, items (a) 12 and (c) of attached Table 6, item (b) 1-2 of attached Table 6 and subparagraph 3-3 of attached Table 7 shall enter into force on January 1, 2006, and the amended provisions of Article 33 (1) and (2) and item (b) 7 of attached Table 6 shall enter into force on January 1, 2008. |
| (2) | (Application Example to Scope of Appurtenant Works) The amended provisions of Article 21 (1) 2 shall apply starting from the portion of concluding the contract agreement first after this Decree enters into force. |
ADDENDUM <Presidential Decree No. 19139, Nov. 25, 2005>
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 36 and 37 shall enter into force on February 9, 2006, and the amended provisions of Article 13 (1) 4 shall enter into force on May 9, 2006.
ADDENDA <Presidential Decree No. 19422, Mar. 29, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 2006.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 19513, Jun. 12, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2006.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 20488, Dec. 28, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2008: Provided, That the amended provisions of Article 25 (1) 18 shall enter into force on January 28, 2008, the amended provisions of attached Table 2 (limited to Class A and Class B of heating installation business and items (e) and (f) of subparagraph 1 of remarks) shall enter into force on January 1, 2009. Article 2 (Applicability concerning Scope of Appurtenant Work)
The amended provisions of Article 21 (1) 2 shall apply to the first work (where a tender has not been publicly announced, referring to the first appurtenant work the contract for which has been entered into) a tender for which is publicly announced after this Decree enters into force. Article 3 (Applicability concerning Details of Contract for any Construction Work)
The amended provisions of Article 25 (1) 18 shall apply to the first appurtenant work the contract for which is entered into after January 28, 2008. Article 4 (Applicability concerning Details in Register of Construction Work)
The amended provisions of Article 26 (2) shall apply to the first construction work which has been subcontracted to a subcontractor by a contractor after this Decree enters into force. Article 5 (Applicability concerning Exemption from Notification of Plan for Direct Construction Work)
The amended provisions of the proviso to Article 30-2 (4) shall apply to the first appurtenant work the contract for which is entered into after this Decree enters into force. Article 6 (Applicability concerning Buildings used by Multitude)
The amended provisions of subparagraphs 1-2 through 5 of Article 36 shall apply to the first building an application for permission of construction of which is made under Article 8 of the Building Act or report of construction of which is made under Article 9 of the same Act or an application for approval for a business program (including authorization of implementation of a project under Article 28 of the Act on the Improvement of Urban Areas and Residential Environments) of which is made under Article 16 of the Housing Act after this Decree enters into force. Article 7 (Applicability concerning Construction Work subject to Joining Retirement Mutual Aid for Construction Workers)
The amended provisions of Article 83 (1) shall apply to the first construction work an application, etc., which falls under any of the following subparagraphs, of which is made after this Decree enters into force: | 1. | An application for permission of construction work under Article 8 of the Building Act or report of construction work under Article 9 of the same Act; |
| 3. | A public announcement of a tender (the conclusion of a contract where a tender has not been publicly announced). |
Article 8 (Applicability concerning Category of Construction Business and Details of Business by Category of Business)
The amended provisions of attached Table 1 shall apply beginning from the first construction work a tender for which is publicly announced (referring to the first construction work a contract for which is entered into where a tender is not publicly announced) after this Decree enters into force.
Article 9 (Applicability concerning Standards for Registration of Construction Business)
The amended provisions of attached Table 2 concerning underwater construction business shall apply beginning from the first underwater construction business an application for registration of which is made after this Decree enters into force.
Article 10 (Special Cases concerning Restrictions on Concurrent Office)
"category of business related to installation of mechanical equipment prescribed by Presidential Decree" in Article 3 of the Addenda to Act No. 8477, the partly amended Act of the Framework Act on the Construction Industry means a mechanical equipment installation business from among categories of business performing specialized construction work under attached Table 1. Article 11 (Transitional Measures concerning Reasons of Disqualifications for Member of Operating Committee)
Despite the amended provisions of Article 52 (1) 3 and 5, the previous provisions shall apply to grounds for disqualifications for a person elected as a member of the Operating Committee before this Decree enters into force. Article 12 (Transitional Measures concerning Registration of Construction Business)
A person who has registered a general construction business or a specialized construction business before this Decree enters into force shall be deemed that he/she has registered a construction business of the relevant category of business under the amended provisions of attached Table 1.
Article 13 (Transitional Measures concerning Standards for Registration of Construction Business)
| (1) | A person, as a person who has registered a underwater construction business before this Decree enters into force, who has failed to meet the registration standards under the amended provisions (limited to a underwater construction business) of attached Table 2 shall make himself/herself suitable to the amended provisions (limited to a underwater construction business) of the same Table by December 31, 2008: Provided, That the same shall not apply to cases where a person who has registered a underwater construction business before this Decree enters into force has technical ability under subparagraph 1 (f) of Remarks in attached Table 2. |
| (2) | A person who has registered a railroad track construction business, and a heating installation business Class A and Class B before this Decree enters into force shall be deemed that he/she meets the standards for registration despite the amended provisions of attached Table 2 (limited to a heating installation business Class A and Class B and subparagraph 1 (e) of Remarks). |
Article 14 (Transitional Measures concerning Maintenance Period)
Despite the amended provisions of attached Table 4, the previous provisions shall apply to the maintenance period of the construction work for which a contract has been entered into before this Decree enters into force.
Article 15 (Transitional Measures concerning Posting of Construction Engineers at Job Site)
Despite the amended provisions of attached Table 5, the previous provisions shall apply to construction engineers to be posted at a job site of the construction work for which a contract has been entered into before this Decree enters into force.
Article 16 (Transitional Measures concerning Administrative Disposition and Administrative Fine)
The Previous provisions shall apply to the administrative disposition (including the disposition of imposition of a penalty surcharge) and an administrative fine against acts of violation before this Decree enters into force.
ADDENDUM <Presidential Decree No. 20506, Dec. 31, 2007>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 20722, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 20791, May 26, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 20805, Jun. 5, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 86 (1) 14 and 87 (1) 8 shall enter into force on September 22, 2008 and the amended provisions of attached Table 2 concerning offices shall enter into force on June 8, 2008. Article 2 (Term of Validity of Standards for Registration of Construction Business concerning Office)
The amended provisions of attached Table 2 concerning offices shall be in force until the date when three years have passed from the date of enforcement of this Decree.
Article 3 (Transitional Measures concerning Administrative Disposition)
The previous provisions shall apply to the administrative disposition (including the disposition of imposition of a penalty surcharge) against acts of violation before this Decree enters into force.
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Decree)
This Decree shall enter into force on February 4, 2009. (Proviso Omitted.)
Articles 2 through 28 Omitted.
ADDENDA <Presidential Decree No. 20977, Aug. 26, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 28, 2008.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 21098, Oct. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 21214, Dec. 31, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 21233, Dec. 31, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 25 (1) shall enter into force on the date of its promulgation. Article 2 (Applicability)
The amended provisions of Article 35 (3) and attached Table 5 shall apply to the first tender (where a tender has not been publicly announced, referring to the first appurtenant work a contract for which has been entered into) for which is publicly announced after this Decree enters into force.
ADDENDUM <Presidential Decree No. 21626, Jul. 7, 2009>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 21765, Oct. 1, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 21819, Nov. 10, 2009>
This Decree shall enter into force three months after the date of its promulgation.
ADDENDA <Presidential Decree No. 22173, May 27, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 30, 2010: Provided, That the amended provisions of Article 57 (1) shall enter into force on the date of its promulgation, and the amended provisions of Article 83 (1) shall enter into force on September 30, 2010. Article 2 (Applicability)
The amended provisions of Article 83 (1) shall apply from the first announcement of a tender (referring to the conclusion of the first contract if no tender is announced) after the amended provisions of Article 83 (1) enter into force under the proviso to Article 1 of the Addenda. Article 3 (Transitional Measures)
An administrative disposition (including the disposition of imposition of a penalty surcharge) and an administrative fine for a violation committed before this Decree enters into force shall be governed by the previous provisions.
ADDENDA <Presidential Decree No. 22269, Jul. 12, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 22303, Jul. 26, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Presidential Decree No. 22493, Nov. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 18, 2010.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 22903, Apr. 14, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Administrative Fines)
| (1) | Standards for imposition of administrative fine on violations committed before this Decree enters into force shall be governed by the previous provisions, notwithstanding the amended provisions of Article 89 and attached Table 7. |
| (2) | The disposition of an administrative fine imposed on violations committed before this Decree enters into force shall be disregarded for the purposes of counting violations referred to in the amended provisions of attached Table 7. |
ADDENDA <Presidential Decree No. 23282, Nov. 1, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 25, 2011: Provided, That the amended provisions of Articles 13 (limited to the parts concerning the amended provisions of Article 82-2 (3) and subparagraphs 8 and 13 of Article 83 of the Act), 19, 20, 21, 32, 34-4 (limited to the parts concerning the amended provisions of Article 38-2 (2) and (3) of the Act), 56, 60, 64-2, 79-3, 80 (limited to the parts concerning the amended provisions of Article 82-2 of the Act), 81 and 86 (1) 9-2, subparagraphs 1 (e), 2 (c) through (g) and 3 of attached Table 6, and subparagraphs 2 (f) and (g) of attached Table 7 shall enter into force on May 25, 2012, the amended provisions of Articles 86 (1) 1 and 87 (1) 1 shall enter into force six months after the date of its promulgation, and the standards for office space from among the amended provisions of attached Table 2 shall enter into force on the date of its promulgation. Article 2 (Applicability to Exceptions to Qualifications for Execution and Direct Execution of Construction Works)
The amended provisions of Articles 19, 20 and 30-2 shall apply from the first announcement of a tender for construction works (referring to the conclusion of the first contract if no tender is announced) after this Decree enters into force. Article 3 (Applicability to Subcontract Inspection Committee and Contents of Construction Business)
The amended provisions of Article 34 (5) through (9) and subparagraph 1 of remarks of attached Table 1 shall apply from the first conclusion of a contract or a subcontract after this Decree enters into force. Article 4 (Applicability to Temporary Failure to Comply with Registration Standards)
The amended provisions of subparagraph 3 (b) of Article 79-2 shall also apply to a receipt of a decision on the closure of rehabilitation procedures from a court before this Decree enters into force. Article 5 (Applicability to Standards for Registration of Construction Business)
A person who has registered for construction business before this Decree enters into force and fall short of standards for registration referred to in the amended provisions of attached Table 2 (limited to the parts concerning office space; hereinafter the same shall apply) shall comply with the said amended provisions of the same Table by December 31, 2011.
Article 6 Omitted.
ADDENDA <Presidential Decree No. 23356, Dec. 8, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 8, 2011. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 23583, Feb. 2, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 5, 2012: Provided, That the amended provisions of subparagraph 1 (j) of remarks of attached Table 2 shall enter into force on January 1, 2013.
Article 2 (Applicability to Buildings subject to Restrictions on Builders)
The amended provisions of Article 36 (1) and (2) 7 and 8 shall apply from the first application for permission on building under Article 11 of the Building Act or reporting on building under Article 14 of the same Act, or the first application for approval of business plans under Article 16 of the Housing Act (including authorization for project implementation referred to in Article 28 of the Act on the Improvement of Urban Areas and Residential Environments) after this Decree enters into force. Article 3 (Transitional Measures concerning Buildings Not Subject to Restrictions on Builders)
The previous provisions shall apply to the buildings which are not subject to restriction of constructors under the previous provisions of subparagraph 2 of Article 37 as at the time this Decree enters into force and for which an application for permission on building or a report on building is filed under Article 11 or 14 of the Building Act, respectively, or an application for approval of business plans (including authorization for project implementation referred to in Article 28 of the Act on the Improvement of Urban Areas and Residential Environments) is filed under Article 16 of the Housing Act before this Decree enters into force.
ADDENDA <Presidential Decree No. 23869, Jun. 21, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability)
The amended provisions of subparagraph 1 of Article 19, subparagraph 1 of Article 20 and Article 30-2 (3) shall apply from the first announcement of a tender for construction works (referring to the conclusion of the first contract if no tender is announced) after this Decree enters into force.
ADDENDUM <Presidential Decree No. 23928, Jul. 4, 2012>
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 24155, Oct. 29, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 1, 2012. (Proviso Omitted.)
Article 2 (Applicability following Amendment of the Enforcement Decree of the Framework Act on the Construction Industry)
Articles 3 through 11 Omitted.
ADDENDA <Presidential Decree No. 24204, Nov. 27, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 2, 2012.
Article 2 (Applicability to Inspections of Propriety of Subcontracts)
The amended provisions of Article 34 (1) 2 shall apply from the conclusion of the first subcontract after this Decree enters into force. Article 3 (Applicability to Types of Unfair Special Agreements)
The amended provisions of subparagraphs 2 and 7 of Article 34-6 shall apply from the conclusion of the first subcontract after this Decree enters into force. Article 4 (Transitional Measures concerning Administrative Dispositions)
An administrative disposition (including the disposition of imposition of a penalty surcharge) for a violation committed before this Decree enters into force shall be governed by the previous provisions.
ADDENDA <Presidential Decree No. 24443, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 24616, Jun. 17, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 19, 2013.
Article 2 (Applicability to Statement of Costs for Issuing Written Guarantees of Price Payment for Rental of Construction Machinery)
The amended provisions of Article 64-3 shall apply from the conclusion of the first contract (including a subcontract) of construction works after this Decree enters into force.
ADDENDUM <Presidential Decree No. 25050, Dec. 30, 2013>
This Decree shall enter into force on January 1, 2014. (Proviso Omitted.)
ADDENDUM <Presidential Decree No. 25152, Feb. 5, 2014>
This Decree shall enter into force on February 7, 2014.
ADDENDA <Presidential Decree No. 25273, Mar. 24, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 25358, May 22, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 23, 2014.
Articles 2 through 13 Omitted.
ADDENDUM <Presidential Decree No. 25532, Aug. 6, 2014>
This Decree shall enter into force on August 7, 2014.
ADDENDA <Presidential Decree No. 25727, Nov. 14, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 15, 2014.
Article 2 (Applicability to Range of Public Institutions)
The amended provisions of Article 34-5 (only where a project owner directly pays the subcontract price equivalent to the part a subcontractor has performed pursuant to Article 35 (1) 1 of the Act to the subcontractor) shall apply, beginning with cases where the project owner enters into the first general contract with a prime contractor after this Decree enters into force. Article 3 (Transitional Measures concerning Delegation of Authority)
Notwithstanding the amended provisions of Article 86 (1) and (2), the previous provisions shall apply where the Minister of Land, Infrastructure and Transport imposed administrative fines under Article 101 of the Act before this Act enters into force.
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 26517, Sep. 11, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 12, 2015. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDUM <Presidential Decree No. 26844, Dec. 31, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 26979, Feb. 11, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 12, 2016: Provided, That the amended provisions of Article 30 shall enter into force on August 12, 2016. Articles 2 (Applicability to Suspension of Business, etc. Caused by Falling Short of Standards for Registration of Construction Business)
The amended provisions of Article 79-2 shall also apply to cases where an order for suspension of business is issued or cancellation of registration is made under subparagraph 3 of Article 83 of the Act against a violation committed before this Decree enters into force. Article 3 (Transitional Measures concerning Mitigation of Period, etc. of Business Suspension)
Notwithstanding the amended provisions of the part other than subparagraph 1 (c) (i) through (iii) of attached Table 6 and the amended provisions of (iii) of said item, a violation committed before this Decree enters into force shall be governed by the previous provisions.
ADDENDA <Presidential Decree No. 27115, Apr. 29, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 27299, Jun. 30, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2016. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDUM <Presidential Decree No. 27440, Aug. 4, 2016>
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 56 (3) 6, 64-2 and subparagraph 2 (a) (xiv) i of attached Table 6 shall enter into force on February 4, 2017; and the amended provisions of Articles 12-2, 45 (3) through (5), 86 (1) 1 (a), and 87 (1) 1 (a) and (6) on February 4, 2018.
ADDENDA <Presidential Decree No. 27444, Aug. 11, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 12, 2016.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 27751, Dec. 30, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2017. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Presidential Decree No. 27792, Jan. 17, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 28, 2017.
Articles 2 through 7 Omitted.
ADDENDUM <Presidential Decree No. 27960, Mar. 27, 2017>
This Decree shall enter into force on March 30, 2017. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 28211, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 28325, Sep. 19, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 22, 2017: Provided, the amended provisions of Table 1 and 2 shall enter into force on January 1, 2018.
Article 2 (Transitional Measures on Plastering, Waterproofing, Masonry Business Entities)
Any person who has registered plastering, waterproofing, masonry business in accordance with the previous Table 2 before this Decree enters into force shall be deemed to have registered wet business or waterproofing business.
Article 3 (Transitional Measures concerning Administrative Disposition)
| (1) | In applying criteria of administrative dispositions against violations committed before this Decree enters into force, the previous provisions shall apply, notwithstanding the amended provisions of subparagraph 2 (a) (xiv) b of Table 6. |
| (2) | In applying criteria of administrative dispositions against violations committed after this Decree enters into force, the administrative dispositions taken pursuant to subparagraph 2 (a) (xiv) b of the previous Table 6 before this Decree enters into force shall be deemed the administrative dispositions taken against violations pursuant to subparagraph 2 (a) (xiv) b of the previous Table 6 when counting the number of violations. |
ADDENDA <Presidential Decree No. 28471, Dec. 12, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2018.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 29006, Jun. 26, 2018>
This Decree shall enter into force on June 27, 2018.
ADDENDA <Presidential Decree No. 29086, Aug. 7, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Application of Criteria for Administrative Dispositions)
| (1) | Notwithstanding the amended provisions of subparagraph 2 (a) (xiv) j of attached Table 6, the previous provisions shall apply in applying the criteria for administrative dispositions to a violation committed before this Decree enters into force. |
| (2) | Where the criteria for administrative dispositions are to be applied to a violation committed after this Decree enters into force, the administrative dispositions imposed for violations committed before this Decree enters into force under the previous provisions of subparagraph 2 (a) (xiv) j of attached Table 6 shall be deemed to be administrative dispositions imposed for violations under the amended provisions of subparagraph 2 (a) (xiv) j of attached Table 6 in counting the number of violations. |
ADDENDA <Presidential Decree No. 29163, Sep. 18, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 21, 2018.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 29269, Oct. 30, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 1, 2018.
Articles 2 through 11 Omitted.
ADDENDA <Presidential Decree No. 29415, Dec. 24, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Metal Structures and Window Construction Business Entities)
A person who filed for registration of metal structure or window construction business under the previous attached Table 2 before this Decree enters into force shall be deemed to have filed for registration of metal structure, window, or greenhouse construction business under the amended provisions of attached Table 2.