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FRAMEWORK ACT ON THE CONSTRUCTION INDUSTRY

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

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

Act No. 5453, Dec. 13, 1997

Act No. 5965, Apr. 15, 1999

Act No. 6112, Jan. 12, 2000

Act No. 6640, Jan. 26, 2002

Act No. 6627, Jan. 26, 2002

Act No. 6802, Dec. 18, 2002

Act No. 6893, May 29, 2003

Act No. 6938, Jul. 25, 2003

Act No. 7306, Dec. 31, 2004

Act No. 7428, Mar. 31, 2005

Act No. 7473, Mar. 31, 2005

Act No. 7513, May 26, 2005

Act No. 7697, Nov. 8, 2005

Act No. 7796, Dec. 29, 2005

Act No. 8477, May 17, 2007

Act No. 8863, Feb. 29, 2008

Act No. 8852, Feb. 29, 2008

Act No. 8971, Mar. 21, 2008

Act No. 9875, Dec. 29, 2009

Act No. 9999, Feb. 4, 2010

Act No. 10339, jun. 4, 2010

Act No. 10719, May 24, 2011

Act No. 11015, Aug. 4, 2011

Act No. 11181, Jan. 17, 2012

Act No. 11466, jun. 1, 2012

Act No. 11576, Dec. 18, 2012

Act No. 11690, Mar. 23, 2013

Act No. 11794, May 22, 2013

Act No. 12012, Aug. 6, 2013

Act No. 12580, May 14, 2014

Act No. 12591, May 20, 2014

Act No. 13469, Aug. 11, 2015

Act No. 14015, Feb. 3, 2016

Act No. 14545, Jan. 17, 2017

Act No. 14708, Mar. 21, 2017

Act No. 14849, Aug. 9, 2017

Act No. 15306, Dec. 26, 2017

Act No. 15720, Aug. 14, 2018

Act No. 15991, Dec. 18, 2018

Act No. 16101, Dec. 31, 2018

Act No. 16136, Dec. 31, 2018

Act No. 16415, Apr. 30, 2019

Act No. 16416, Apr. 30, 2019

Act No. 16625, Nov. 26, 2019

Act No. 17221, Apr. 7, 2020

Act No. 17453, jun. 9, 2020

Act No. 17543, Oct. 20, 2020

Act No. 17653, Dec. 22, 2020

Act No. 17799, Dec. 29, 2020

Act No. 17939, Mar. 16, 2021

Act No. 18338, Jul. 27, 2021

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to ensure the proper execution of construction works and the sound development of the construction industry by providing for fundamental matters concerning the survey, design, execution, supervision, maintenance and management, technological management, etc. of construction works and for other matters necessary for the registration of construction business, contracts for construction works, etc.
[This Article Wholly Amended on May 24, 2011]
 Article 2 (Definitions)
The terms used in this Act are defined as follows: <Amended on Aug. 14, 2018; Apr. 30, 2019; Jun. 9, 2020>
1. The term "construction industry" means construction business and construction service business.
2. The term "construction business" means the business of performing construction works;
3. The term "construction service business" means the business of rendering services related to construction works (hereinafter referred to as "construction services"), such as surveys, design, supervision, project management, and maintenance and management in respect of construction works;
4. The term "construction works" means civil engineering works, building works, industrial equipment works, landscaping works, environmental installation works, and other works to install, maintain and repair facilities (including site preparation works for installing such facilities), regardless of their names, as well as installation and dismantling works, etc. of machinery and equipment and other structures: Provided, That the following works shall be excluded:
(a) Electric works under the Electrical Construction Business Act;
(b) Information and communications works under the Information and Communications Construction Business Act;
(c) Firefighting system installation works under the Firefighting System Installation Business Act;
(d) Cultural heritage maintenance works under the Act on Cultural Heritage Maintenance, Etc.;
5. The term "general construction works" means any works to construct facilities under comprehensive planning, management and coordination;
6. The term "specialized construction works" means any works to construct a part of facilities or any works in a specialized field;
7. The term "constructor" means a person who runs construction business after registration, etc. under this Act or other statutes;
8. The term "construction management" means the management of construction works, including planning, feasibility studies, analysis, design, procurement, contracts, execution management, supervision, assessment and follow-up management;
9. The term “construction management at-risk” means a method by which a constructor who has filed for registration of the business category of performing general construction works performs construction management for construction works in the pre-construction phase as well as constructing facilities within a fixed price and period through comprehensive planning, management and coordination under a separate agreement on execution and construction management with the relevant project owner, in the construction phase;
10. The term "project owner" means a person who awards contracts for construction works to constructors: Provided, That any contractor who subcontracts construction works contracted to him or her to others shall be excluded;
11. The term "contract" means a contract under which, regardless of its names, such as a prime contract, subcontract and entrustment, one contracting party promises to complete construction works and the other contracting party commits itself to make payments for the results of the works;
12. The term "subcontract" means a contract which a contractor concludes with a third party to outsource all or part of construction works contracted to him or her;
13. The term "contractor" means a constructor awarded a contract for construction works by any project owner, including constructors who subcontract in cases of subcontracts;
14. The term "subcontractor" means a person awarded a subcontract for construction works by a contractor;
15. The term "construction engineer" means a person deemed to have expertise or skills in construction works under related statutes or regulations.
[This Article Wholly Amended on May 24, 2011]
 Article 3 (Fundamental Concepts)
The fundamental concepts of this Act are to contribute to the national economy and the security of the daily life of the citizens by developing the construction industry in a balanced manner to attain international competitiveness in the fields of design, supervision, execution, project management, maintenance and management, and the like.
[This Article Wholly Amended on May 24, 2011]
 Article 4 (Relationship with Other Statutes)
Except as provided in other statutes, this Act shall apply to the construction industry: Provided, That this Act shall prevail with respect to matters concerning the scope of construction works and the registration of construction business, and Articles 6 and 26 and Chapter VIII (Articles 69 through 79, 79-2 and 80) shall apply to construction service business, notwithstanding other statutes. <Amended on Aug. 6, 2013>
[This Article Wholly Amended on May 24, 2011]
 Article 5 (Determination of Standards for Foreign Constructors)
The Minister of Land, Infrastructure and Transport may determine standards for recognizing qualification, academic background, career, etc. obtained in a foreign country with respect to construction business, if necessary for registering construction business of foreigners or foreign corporations. <Amended on Mar. 23, 2013>
[This Article Wholly Amended on May 24, 2011]
[Title Amended on Apr. 30, 2019]
 Article 6 (Establishment of Master Plans for Construction Industry Promotion)
(1) The Minister of Land, Infrastructure and Transport shall establish and implement a master plan for the promotion of the construction industry every five years in order to foster the construction industry, develop construction technology, and to ensure the safety and quality of construction works, etc. <Amended on Mar. 23, 2013>
(2) A master plan for construction industry promotion referred to in paragraph (1) shall include the following:
1. Basic direction-setting for policies to promote the construction industry;
2. Measures for the development of construction technology and training of construction engineers;
3. Internationalization of the construction industry and support for its entry into overseas markets;
4. Measures for ensuring the safety, environmental conservation and quality of construction works;
5. Measures for the growth of small or medium construction business and small or medium construction services business;
6. Measures for improving the productivity of construction works and other matters prescribed by Presidential Decree.
(3) The Minister of Land, Infrastructure and Transport may establish and implement an annual plan within the scope of the master plan for the promotion of the construction industry referred to in paragraph (1) in consideration of the trends in the construction market, development of construction technology, etc. <Amended on Mar. 23, 2013>
[This Article Wholly Amended on May 24, 2011]
 Article 7 (Responsibilities of Construction-Related Entities)
(1) The Government shall determine and disseminate standards for the design, execution, supervision and maintenance and management of construction works, the quality and standards of construction materials, the methods of contracting, etc. to ensure the quality and safety of construction works and endeavor to provide information, such as the execution capacity, capital, management status and performance records of construction works of constructors. <Amended on Apr. 30, 2019>
(2) Any project owner of construction works shall select a competent constructor according to fair standards and procedures to ensure that facilities are constructed suitable for public safety and welfare, and shall endeavor that the construction works shall be appropriately executed. <Amended on Apr. 30, 2019>
(3) A constructor is responsible for faithfully performing the following: <Amended on Jul. 27, 2021>
1. To comply with statutes and regulations related to construction works and construction services in order to ensure the quality and safety of facilities;
2. To comply with labor-related statutes are regulations, such as directly paying wages to construction workers in accordance with the Labor Standards Act;
3. To perform work faithfully in accordance with the design drawings, specifications, and the contract;
4. To not falsely provide or advertise information on performance records of construction works, status of affiliated engineers, financial status, or other information related to execution capacity.
[This Article Wholly Amended on May 24, 2011]
CHAPTER II REGISTRATION OF CONSTRUCTION BUSINESS
 Article 8 (Categories of Construction Businesses)
(1) Construction businesses shall be classified into a business of performing general construction works and a business of performing specialized construction works.
(2) The specific categories and scope of duties of construction businesses shall be prescribed by Presidential Decree.
[This Article Wholly Amended on May 24, 2011]
 Article 9 (Registration of Construction Business)
(1) Any person who intends to run construction business shall file for registration with the Minister of Land, Infrastructure and Transport by category of business prescribed by Presidential Decree: Provided, That where any person intends to perform minor construction works prescribed by Presidential Decree as his or her main business, he or she may run a construction business without such registration. <Amended on Mar. 23, 2013>
(2) Any person who intends to file for registration of construction business pursuant to paragraph (1) shall file an application therefor with the Minister of Land, Infrastructure and Transport, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>
(3) Except as otherwise provided in any other statute, no corporation in which the State or any local government has invested at least 50/100 of its capital or which is a nonprofit corporation shall file an application for registration of construction business under paragraph (1).
(4) Deleted. <Feb. 17, 2016>
[This Article Wholly Amended on May 24, 2011]
 Article 9-2 (Issuance of Registration Certificate)
(1) Where construction business has been registered, the Minister of Land, Infrastructure and Transport shall issue a construction business registration certificate and a construction business registration pocketbook to the relevant applicant, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>
(2) A person who has been issued a construction business registration certificate or a construction business registration pocketbook pursuant to paragraph (1) shall, when any matter prescribed by Presidential Decree from among the entries in the relevant certificate or pocketbook has been altered, file an application for alteration with the Minister of Land, Infrastructure and Transport within 30 days, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>
(3) Where a construction business registration certificate or a construction business registration pocketbook under paragraph (1) is lost or rendered unusable, it may be re-issued, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>
[This Article Wholly Amended on May 24, 2011]
 Article 9-3 (Education on Construction Business)
(1) A person who has his or her construction business registered under Article 9 (1) (excluding cases where a constructor registers another category of business additionally) shall receive education on construction business ethics and practice conducted by the Minister of Land, Infrastructure and Transport within six months from the registration date of the construction business. In such cases, if a person required to receive the education is a corporation, at least one executive officer listed in the register (including the representative director) thereof shall receive the education. <Amended on Apr. 30, 2019>
(2) The Minister of Land, Infrastructure and Transport may conduct education on construction business ethics and practice for the constructors other than those required to receive the education under paragraph (1), and in such cases, the period of suspension of business, etc. may be reduced for those who have completed such education, as provided for in Article 84. <Amended on Apr. 30, 2019>
(3) Methods, standards, and procedures for the education under paragraphs (1) and (2), education institutions, and other necessary matters shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Aug. 11, 2015]
 Article 10 (Standards for Registration of Construction Business)
The following which constitutes the standards for registration of construction business referred to in Article 9 (1) shall be prescribed by Presidential Decree:
1. Technical capabilities:
2. Capital (referring to the appraisal value of assets in cases of individuals; hereinafter the same shall apply);
3. Facilities and equipment;
4. Other necessary matters.
[This Article Wholly Amended on May 24, 2011]
 Article 11 (Restrictions on Indications and Advertisements)
(1) No one who fails to file for registration of construction business by business category pursuant to Article 9 shall make any indication or advertisement on the business place, advertising materials, etc. to the effect that he or she is the constructor of the relevant business category, or that may be leading to suggest that he or she is the constructor of the relevant business category. <Amended on Apr. 30, 2019>
(2) The Minister of Land, Infrastructure and Transport may require a public official under his or her control to take appropriate measures, such as removing advertising materials by force, against a person who has made any indication or advertisement in violation of paragraph (1). <Amended on Mar. 23, 2013>
[This Article Wholly Amended on May 24, 2011]
 Article 12 Deleted. <May 17, 2007>
 Article 13 (Disqualification for Registration of Construction Business)
(1) None of the following persons (in cases of a corporation, including where it has any of the following executives) shall file for the registration of construction business under Article 9 (1). The same shall also apply to a foreigner or foreign corporation that falls under any of the following cases or a similar case in the relevant country: <Amended on May 24, 2011; Jun. 1, 2012; May 14, 2014; Mar. 21, 2017>
3. A person who has yet to be reinstated after having been declared bankrupt;
2. Persons under adult guardianship or persons under limited guardianship;
3. Any of the following persons whose registration of construction business was canceled under Article 82-2 or 83. In such cases, if a person whose registration of construction business was canceled is a corporation, a person who engaged in conduct which was the ground for such cancellation and its representative shall be included:
(a) A person in whose case 10 years have not passed since his or her registration of construction business was canceled on the ground provided for in subparagraph 5 of Article 83;
(b) A person whose registration of construction business was canceled on any ground provided for in Article 82-2 (3) and subparagraphs 1, 3-3, 8, 10 and 13 of Article 83 and in whose case five years have not passed since such cancellation;
(c) Deleted; <Jul. 27, 2021>
(d) A person in whose case one and half years have not passed since his or her registration of construction business was canceled for reasons other than those under Article 82-2 (3), and subparagraphs 1, 3-3, 4, 5, 8, 10, and 13 of Article 83;
4. A person sentenced to imprisonment without labor or heavier for violation of this Act or the Housing Act, in whose case three years have not passed from the date the execution of the relevant punishment was completed (including where such execution is deemed completed) or exempted;
5. A person sentenced to imprisonment without labor or heavier for committing any crime provided for in Articles 129 through 133 of the Criminal Act, in whose case five years have not passed from the date the execution of the relevant punishment was completed (including where such execution is deemed completed) or exempted;
6. A person under suspended execution of sentence for a violation of subparagraph 4 or 5.
(2) Deleted. <Nov. 8, 2005>
(3) The Minister of Land, Infrastructure and Transport shall notify a person disqualified for registration of construction business under paragraph (1), among applicants for such registration under Article 9 (2), of the ground therefor. <Amended on May 24, 2011; Mar. 23, 2013>
[Title Amended on Apr. 15, 1999; May 24, 2011]
 Article 14 (Continued Works after Disposition of Business Suspension)
(1) A constructor subject to a disposition of business suspension or cancellation of registration pursuant to Article 82, 82-2, or 83 and his or her general successor may continue to perform construction works for which he or she has concluded a contract before the disposition is issued or for which he or she has commenced the construction works with permission, authorization, etc. under related statutes or regulations. The same shall also apply where registration of construction business is canceled by a report on the closure of business filed under Article 20-2. <Amended on Apr. 30, 2019>
(2) A constructor subject to a disposition of business suspension or cancellation of registration pursuant to Article 82, 82-2, or 83 and his or her general successor shall notify without delay the project owner of the relevant construction works of the details of the disposition, and where the constructor is a subcontractor, he or she shall notify the project owner and the contractor of the details of such disposition. The same shall also apply where registration of construction business is canceled by a report on the closure of business filed under Article 20-2. <Amended on Apr. 30, 2019>
(3) Where any constructor continues construction works after his or her registration of construction business has been canceled under paragraph (1), he or she shall be deemed a constructor until he or she completes such works. <Amended on Apr. 30, 2019>
(4) Any project owner of construction works may terminate a contract for work within 30 days from the date he or she receives notification under paragraph (2) from the relevant constructor or the date he or she becomes aware of such fact in the absence of special circumstances. <Amended on Apr. 30, 2019>
(5) Where a project owner receives notification referred to in paragraph (2) from a subcontractor who is the constructor, he or she may request the contractor to terminate subcontracts of the relevant works. <Amended on Apr. 30, 2019>
(6) Where a contractor receives notification referred to in paragraph (2) from a subcontractor, he or she may terminate the subcontract within 30 days from the date he or she receives such notification or becomes aware of such disposition (or the date he or she receives a request for cancellation of the subcontract pursuant to paragraph (5), if applicable) in the absence of special circumstances.
[This Article Wholly Amended on May 24, 2011]
 Article 15 Deleted. <Apr. 15, 1999>
 Article 16 (Qualifications for Performing Construction Works)
(1) A constructor who intends to be awarded a contract for general construction works shall file for registration of the business category of performing the relevant general construction works: Provided, That in any of the following cases, a constructor may be awarded a contract for general construction works without filing for registration of the business category of performing the relevant general construction works: <Amended on Apr. 30, 2019>
1. Where a constructor who has filed for registration of two or more business categories of performing specialized construction works is awarded a contract for specialized construction works within such business categories;
2. Where a constructor qualifying for the execution of general construction works is awarded a contract for general construction works for planning, management and adjustment, jointly with another constructor qualifying for the execution of specialized construction works, under the condition that the constructor qualifying for specialized construction works shall perform the required specialized construction works;
3. Where two or more constructor who have filed for a business category of performing specialized construction works are jointly awarded a contract for general construction works consisting of specialized construction works within the business category, based on such considerations as work process management and the distinction of defects liability, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport;
4. Where a constructor who has filed for registration of the business category of performing general construction works is awarded a contract for specialized construction works that the constructor can perform for a certain facility under Article 8 (2), as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport;
5. Where a constructor is awarded a contract for construction works within the business category registered under Article 9 (1) (including construction works referred to in subparagraphs 1, 3 and 4), along with construction works incidental thereto;
6. Where a constructor is awarded a contract for other construction works as those incidental to the construction works performed or being performed under a contract already awarded for construction works within the business category registered under Article 9 (1);
7. Other cases prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport as those where the project owner deems necessary to improve the quality of construction works or the efficiency of execution of construction works, based on such considerations as the degree of technical difficulty, and the correlation between specialized construction works comprising construction works.
(2) Incidental works referred to in paragraphs (1) 5 and 6 mean works appurtenant to main works, and the scope of, and criteria for, such works shall be prescribed by Presidential Decree.
(3) In order to perform general or specialized construction works under a contract awarded under paragraph (1) 1, 3 or 4, a constructor shall meet the standards for registration of the business category of performing relevant construction works before the contract is concluded (referring to the deadline for registration for participation in bidding, in cases of a contract to be awarded through bidding) and shall continue to comply with the standards during the period of performance: Provided, That the foregoing shall not apply where a constructor who has filed for two or more business categories of performing specialized construction works is awarded a contract for general construction works consisting of the specialized construction works within the business categories, and a constructor is deemed to meet the standards if the members of the consortium jointly meet the standards for required standards for registration in the case of subparagraph 3. <Amended on Apr. 30, 2019>
(4) Detailed matters concerning the procedure, method, etc. of meeting the standards for registration under paragraph (3) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
[This Article Wholly Amended on Dec. 31, 2018]
[Enforcement Date: January 1, 2024] Articles 16 (1) 3 and 16 (1) 4 (limited to cases where a prime contract is awarded for specialized construction works for which the estimated price is less than 200 million won)
 Article 17 (Transfer of Construction Business)
(1) Any constructor shall file a report to the Minister of Land, Infrastructure and Transport as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport in any of the following cases: <Amended on Jun. 1, 2012; Mar. 23, 2013; Apr. 30, 2019>
1. Where a constructor intends to transfer his or her construction business;
2. Where a corporate constructor intends to consolidate or merge with another corporation: Provided, That this shall not apply to where a corporate constructor merges a corporation that is not a constructor.
(2) Where a person who intends to file a report on the transfer of construction business under paragraph (1) 1 has received a disposition restricting his or her eligibility to participate in tenders as an unjust operator under the Act on Contracts to Which the State Is a Party or the Act on Contracts to Which a Local Government Is a Party, and is under the period of such restriction, he or she shall verify that the transferee has confirmed such fact, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>
(3) Where a report on the transfer of construction business referred to in paragraph (1) is filed, the person who assumes charge of the construction business shall succeed to the status of the constructor who transfers the construction business, and where a report on a corporate consolidation or merger is filed, the resulting or surviving corporation after the consolidation or merger shall succeed to the status of the constructor of the disappearing corporation. <Amended on Apr. 30, 2019>
(4) Paragraphs (1) and (3) shall apply mutatis mutandis to inheritance of the construction business. In such cases, where the heir becomes disqualified as provided for in any subparagraph of Article 13 (1), he or she shall transfer the construction business to any third party within three months.
[This Article Wholly Amended on May 24, 2011]
 Article 18 (Public Announcements of Transfer of Construction Business)
Any person who intends to transfer his or her construction business under Article 17 (1) 1 shall give a public announcement thereof for at least 30 days, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>
[This Article Wholly Amended on May 24, 2011]
 Article 19 (Details of Transfer of Construction Business)
(1) Any person who intends to transfer his or her construction business pursuant to Article 17 (1) 1 shall completely transfer the following rights and obligations concerning the category of business to be transferred:
1. Rights and obligations concerning contract for construction works in progress;
2. Rights and obligations concerning repairs of defects of any completed works under a defects liability period.
(2) Where any construction works is in progress as provided in paragraph (1) 1, no construction business shall be transferred unless the project owner of such construction works consents, or the contract therefor is terminated.
[This Article Wholly Amended on May 24, 2011]
 Article 20 (Restrictions on Transfer of Construction Business)
No constructor shall transfer his or her construction business in any of the following cases: Provided, That where he or she is obligated to transfer his or her construction business on the ground provided for in the latter part of Article 17 (4), he or she may transfer his or her construction business even in any of the following cases: <Amended on Apr. 30, 2019>
1. Where he or she is in the period of business suspension under Article 82, 82-2, or 83;
2. Where he or she is subject to cancellation of registration of his or her construction business pursuant to Article 82-2 or 83, and is under a period of suspended execution of the disposition under the Administrative Appeals Act or the Administrative Litigation Act.
[This Article Wholly Amended on May 24, 2011]
 Article 20-2 (Closure of Construction Business)
(1) Where any person who has filed for registration of the construction business pursuant to Article 9 intends to close his or her construction business, he or she shall submit a report to the Minister of Land, Infrastructure and Transport, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>
(2) Where a report on the closure of business is submitted under paragraph (1), the Minister of Land, Infrastructure and Transport shall cancel the registration of the relevant construction business, and publicly announce such fact, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>
[This Article Wholly Amended on May 24, 2011]
 Article 21 (Prohibition of Lending and Assisting in Lending Construction Business Registration Certificates)
(1) No constructor shall permit any third person to contract or perform construction works by using his or her name or trade name, or shall lend his or her construction business registration certificate or construction business registration pocketbook to any third person. <Amended on Apr. 30, 2019>
(2) No person shall contract or perform construction works by borrowing the name or trade name of a constructor or borrow a construction business registration certificate or construction business registration pocketbook. <Newly Inserted on Mar. 21, 2017; Apr. 30, 2019>
(3) No one shall assist in doing the acts prohibited under paragraph (1) and (2). <Amended on Mar. 21, 2017>
(4) No owner of a building shall allow any person to contract or perform construction works in conspiracy with a constructor who has violated paragraph (1) or a person who has violated paragraph (2). <Newly Inserted on Mar. 21, 2017; Apr. 30, 2019>
[This Article Wholly Amended on May 24, 2011]
[Title Amended on Mar. 21, 2017]
 Article 21-2 (Prohibition of Lending National Technical Qualification Certificates)
No constructor shall borrow or lend a national technical qualification certificate or career certificate of construction technology from or to any third person. <Amended on Apr. 30, 2019>
[This Article Newly Inserted on Dec. 29, 2009]
CHAPTER III CONTRACT FOR WORK OR SUBCONTRACT
 Article 22 (Principles of Contracts for Construction Works)
(1) Parties to a contract for construction works (including subcontracts; hereinafter the same shall apply) shall conclude a fair contract by agreement and on an equal footing, and shall conscientiously perform the contract in good faith.
(2) In concluding a contract for construction works, parties to the contract shall clearly stipulate the contract price, period of works and other matters prescribed by Presidential Decree, and shall exchange and keep copies of the contract after affixing thereto signature or name and seal.
(3) In order for the parties to a contract to conclude a fair contract on an equal footing, the Minister of Land, Infrastructure and Transport shall encourage them to prepare and use a standard form of a contract on construction works and the entrustment of construction management (in cases of a subcontract, including a standard form of a subcontract for construction works recommended by the Fair Trade Commission under the Fair Transactions in Subcontracting Act; hereinafter referred to as "standard form of contract"). <Newly Inserted on Aug. 6, 2013>
(4) A constructor shall enter matters regarding construction works in a construction work ledger, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013; Aug. 6, 2013; Apr. 30, 2019>
(5) In any of the following cases where the terms of a contract are substantially unfair to either party to the contract, only such part of the contract shall be deemed ineffective: <Newly Inserted on Aug. 6, 2013; Jun. 9, 2020>
1. Where either party to the contract does not approve changes to the contract amount which occur due to design change or changes in economic conditions after the conclusion of the contract without reasonable grounds, or passes the burden on to the other party to the contract;
2. Where either party to the contract does not approve the change of the contract period due to changes in the scope of work after the conclusion of the contract without reasonable grounds, or passes the burden on to the other party to the contract;
3. Where either party to the contract passes responsibility for matters on to the other party to the contract, which cannot be expected as at the time of the conclusion of the contract in light of all the relevant conditions, such as a type of a contract for construction works and the scope of construction works;
4. When the scope of the contract has not been specifically stipulated or a dispute exists between the parties to the contract, where either party to the contract infringes on a legitimate interest of the other party to the contract by determining the scope of the contract at his or her discretion;
5. Where either party to the contract infringes on a legitimate interest of the other party to the contract by determining excessively reduced or increased liability for damages of a party to the contract due to breach of the contract;
6. Where either party to the contract excludes or limits the right of other party to the contract acknowledged by related statutes and regulations, such as the Civil Act, without reasonable grounds.
(6) A constructor shall notify a project owner of items mentioned in the construction work ledger under paragraph (4), as prescribed by Presidential Decree. <Amended on Aug. 6, 2013; Feb. 3, 2016; Apr. 30, 2019>
(7) Parties to a contract for construction works shall clearly state the amount the relevant constructor is obligated to pay with respect to such construction works, on the statement of the contract price for the relevant construction works (including the statement of subcontract price calculation; hereafter in this paragraph the same shall apply), as prescribed by Presidential Decree, such as insurance premiums under the Act on the Collection of Insurance Premiums for Employment Insurance and Industrial Accident Compensation Insurance, insurance premiums of the national pension under the National Pension Act, health insurance premiums under the National Health Insurance Act, and long-term care insurance premiums under the Long-Term Care Insurance Act. In such cases, where the amount recorded on the statement of contract price calculation exceeds the insurance premiums actually paid, matters concerning adjustment thereof shall be prescribed by Presidential Decree. <Amended on Aug. 6, 2013; Apr. 30, 2019>
(8) Where a constructor requests the project owner to amend terms and conditions of a contract for construction works after two or more constructors including the constructor are awarded the contract by a person other than the State, a local government, or a public institution prescribed by Presidential Decree, he or she shall notify the other constructors of the reason therefor, in writing, by not later than 10 days before the date of request. <Amended on Dec. 31, 2018; Apr. 30, 2019>
[This Article Wholly Amended on May 24, 2011]
 Article 22-2 (Guarantee of Payment of Contract Price)
(1) When a contractor guarantees the performance of a contract to a project owner where he or she is awarded a contract for construction works by a person other than the State, a local government, or a public institution prescribed by Presidential Decree, the project owner shall also guarantee the payment of the contract price or provide security to the contractor: Provided, That where it is impracticable to guarantee the payment of the construction price or to provide security, the project owner shall pay the insurance premium or mutual aid fee (hereinafter referred to as "insurance premium, etc.") within 30 days from the date of receiving the guarantee of the performance of the contract so that the contractor can purchase an insurance policy or mutual aid equivalent thereto. <Amended on Nov. 26, 2019>
(2) A project owner or contractor need not guarantee the performance of a contract referred to in paragraph (1) or the payment of the cost of a construction project for any construction works prescribed by Presidential Decree, including small-scale construction works. <Newly Inserted on Nov. 26, 2019>
(3) When a project owner fails to provide the guarantee of the payment of the contract price or security or to pay insurance premiums or the like under paragraph (1), the contractor may demand the provision or payment to the project owner by stipulating a reasonable period and suspend the performance of construction works. Where the project owner fails to make provision or payment within the notified period, the contractor may terminate such contract for construction works. <Amended on Nov. 26, 2019>
(4) Where a contractor suspends construction works or terminates a contract for construction works pursuant to paragraph (3), the project owner may not claim damages to the contractor on the grounds of the suspension of construction works or the termination of the contract for construction works. <Amended on Nov. 26, 2019>
(5) Matters necessary for the means and procedures of guaranteeing the payment of construction prices under paragraph (1) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted on Nov. 26, 2019>
[This Article Newly Inserted on Aug. 13, 2013]
 Article 22-3 (Presumption of Contract)
(1) Where a project owner fails to issue a written contract in concluding a contract for work, which includes the matters referred to in Article 22 (2), the contractor may request him or her to confirm the contracted matters by notifying in writing the project owner of the matters prescribed by Presidential Decree, such as the details of the contracted construction works and contract price.
(2) A project owner shall send a written reply to the contractor on whether he or she accepts or denies the contents of the notification within 15 days from the date when he or she receives the notification under paragraph (1); and if no reply is sent within such period, it shall be presumed that there has been a contract with the same content as originally notified by the contractor: Provided, That the same shall not apply where any natural disaster or any other incident makes it impossible to reply.
(3) The contractor in the case of a notification under paragraph (1), and the project owner in the case of a reply under paragraph (2), shall sign or affix their names and seals, respectively.
(4) Paragraphs (1) through (3) shall apply mutatis mutandis to the presumption of a subcontract. In such cases, "project owner" shall be construed as "contractor," "contractor" as "subcontractor," and "contract" as "subcontract," respectively.
(5) Matters necessary in connection with a notification under paragraph (1) and a reply under paragraph (2) shall be prescribed by Presidential Decree.
(6) Each project owner, contractor, and subcontractor shall keep the written documents referred to in paragraphs (1) and (2) as prescribed by Presidential Decree.
[This Article Newly Inserted on Feb. 3, 2016]
 Article 23 (Appraisal and Public Announcement of Execution Capacity)
(1) Upon receipt of an application from a constructor, the Minister of Land, Infrastructure and Transport shall appraise and publicly announce the execution capacity of the constructor based on his or her performance records of construction works, capital, and the levels of safety, environment, and quality control of construction works, to ensure that a project owner can select an appropriate constructor. <Amended on May 24, 2011; Mar. 23, 2013; Apr. 30, 2019>
(2) Deleted. <Apr. 15, 1999>
(3) A constructor who intends to receive appraisal of his or her execution capacity and make such appraisal publicly announced under paragraph (1) shall submit the performance records of construction works for the preceding year, the status of engineers affiliated, financial status, and other matters determined by Ordinance of the Ministry of Land, Infrastructure and Transport to the Minister of Land, Infrastructure and Transport, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on May 24, 2011; Mar. 23, 2013; Apr. 30, 2019>
(4) If necessary for the evaluation of execution capacity under paragraph (1), the Minister of Land, Infrastructure and Transport may request the submission of data, such as records of performance and the status of affiliated engineers, from the relevant constructor who has filed an application for the evaluation of the execution capacity, the project owner, and from the heads of other related institutions and organizations. In such cases, the heads of relevant institutions, organizations, etc. requested to submit data shall comply with such request unless there is a compelling reason not to do so. <Newly Inserted on Apr. 7, 2020>
(5) The methods of conducting appraisal of execution capacity, details of data to be submitted, procedures for giving public announcements, and requests for the submission of data under paragraphs (1), (3), and (4), and other necessary matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on May 24, 2011; Mar. 23, 2013; Apr. 7, 2020>
[Title Amended on May 24, 2011]
 Article 23-2 (Appraisal and Public Announcement of Construction Management Capacity)
(1) Upon receipt of an application from a construction manager, the Minister of Land, Infrastructure and Transport shall appraise and publicly announce the construction management capacity of the construction manager based on the construction management performance and financial status of the construction manager, to ensure that a project owner can select an appropriate construction manager under Article 26 (2). <Amended on Mar. 23, 2013>
(2) Any construction manager who intends to undergo appraisal and make such appraisal publicly announced under paragraph (1) shall submit his or her construction management performance for the preceding year, the status of affiliated human resources in construction management, financial status and other matters prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, to the Minister of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>
(3) The method of appraising construction management capacity, details of data to be submitted, and procedures for giving public announcements under paragraphs (1) and (2) and other necessary matters shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>
[This Article Wholly Amended on May 24, 2011]
 Article 24 (Comprehensive Management of Construction Industry Information)
(1) The Minister of Land, Infrastructure and Transport may comprehensively manage the information on constructors, such as their capital, management status and the current performance status of construction works, the supply and demand status of materials and human resources necessary for construction works, guarantees referred to in Article 56 (1) 1, administrative sanctions and other construction-related information, and provide such information to the related institutions, organizations, etc. requiring them. <Amended on Mar. 23, 2013; Apr. 30, 2019; Jun. 9, 2020>
(2) The Minister of Land, Infrastructure and Transport may comprehensively manage the information on construction managers, such as capital, management status, and construction management performance, and construction management-related information, such as the actual demand for and supply of human resources necessary for construction management, and provide such information to the related institutions, organizations, etc. requiring them. <Amended on Mar. 23, 2013; Jun. 9, 2020>
(3) The Minister of Land, Infrastructure and Transport may establish and operate a knowledge information system of construction industry to systematically manage such construction industry information provided for in paragraphs (1) and (2), as prescribed by Presidential Decree. <Amended on Mar. 23, 2013>
(4) The Minister of Land, Infrastructure and Transport may request constructors, construction managers, producers or suppliers of construction materials, related administrative agencies, associations of construction-related business operators, and agencies that render or conduct research on construction-related mutual-aid, insurance, or guarantee services to provide data on the current performance status of construction works, production or sale situations of construction materials, current status of construction human resources, construction management performance, etc. for the comprehensive management of information provided for in paragraphs (1) and (2). In such cases, any person or entity so requested shall comply therewith in the absence of special circumstances. <Amended on Mar. 23, 2013; Apr. 30, 2019>
(5) Procedures for requesting a provision of data under paragraph (4) and other necessary matters shall be prescribed by Presidential Decree.
[This Article Wholly Amended on May 24, 2011]
 Article 25 (Restrictions on Qualification of Contractors)
(1) A project owner shall award a contract to a constructor registered for the business category corresponding to the details of construction works, based on such considerations as the necessity of comprehensive planning, management, and coordination of the construction works for which the project owner intends to award a contract, construction competency in the specialized area, characteristics of construction technology, and site conditions. <Amended on Dec. 31, 2018; Apr. 30, 2019>
(2) A contractor shall award a subcontract to a constructor qualified for performing construction works under Article 16. <Amended on Dec. 31, 2018; Apr. 30, 2019>
(3) A project owner or contractor may restrict qualifications of contractors or subcontractors of construction works on the basis of the execution capacity, performance records of construction works, technological capabilities, etc. announced publicly pursuant to Article 23 (1) in consideration of the characteristics of construction works.
(4) The head of a State agency or local government entitled to issue dispositions, such as authorization, permission or approval with respect to Class-I structures and Class-II structures under the Special Act on the Safety Control and Maintenance of Establishments may recommend that the relevant project owner replace a builder if he or she deems that the builder’s execution capacity is substantially inappropriate in consideration of such factors as the size of the relevant construction works and the necessity of structural safety. <Amended on Jan. 17, 2017>
(5) The Minister of Land, Infrastructure and Transport may impose penalty points on any of the following contractors and shall manage such penalty points, as prescribed by Presidential Decree: <Newly Inserted on Dec. 18, 2018>
1. A person against whom a disposition has been issued under Article 82 (2) 6, subparagraph 1 of Article 98-2 or subparagraph 6 of Article 99;
2. A person who was punished under Article 109 (1) of the Labor Standards Act for a violation of Article 44-2 (1) of that Act;
3. A person who has been listed, together with subcontractors, on a public announcement of the number, etc. of industrial accident occurrences under Article 9-2 of the Occupational Safety and Health Act for violations of Article 29 (3) of that Act (limited to the places of business referred to in Article 29-3 (1) 4 (a) through (c) of that Act);
4. A person who was punished under subparagraph 1 of Article 68 of the Occupational Safety and Health Act for abetting a subcontractor to conceal an industrial accident occurrence or for conspiring the concealment of an industrial accident occurrence with a subcontractor.
(6) When a constructor becomes subject to a disposition issued or a punishment imposed under the subparagraphs of paragraph (5), the head of the administrative agency in charge of the statute or regulation relevant to such disposition or punishment shall notify the Minister of Land, Infrastructure and Transport of the fact. <Newly Inserted on Dec. 18, 2018; Apr. 30, 2019>
[This Article Wholly Amended on May 24, 2011]
 Article 26 (Performance of Affairs by Construction Managers)
(1) A project owner may, if necessary, wholly or partially entrust construction management affairs to a person who has expert knowledge and technological capabilities about construction management.
(2) Where the details of construction management affairs performed by a person entrusted with the construction management affairs by the project owner (hereinafter referred to as "construction manager") are affairs requiring a report, registration, etc. under this Act or related statutes and regulations, none of such construction management affairs shall be performed unless the person entrusted therewith has filed a report or for registration under the related statutes or regulations: Provided, That where a construction manager of airport, expressway, power plant, dam, or plant works which are large scale compound construction works, is equipped with technical human resources, such as architects or professional engineers capable of performing design or supervision affairs under related statutes or regulations, he or she may perform such works being entrusted with design and supervision affairs together, notwithstanding Article 23 (1) of the Certified Architects Act or Article 26 (1) of the Construction Technology Promotion Act. <Amended on May 22, 2013>
(3) A construction manager shall, with the duty of care as a good manager, perform the entrusted affairs for the relevant project owner.
(4) No construction manager shall advise for himself or his or her affiliated company (referring to an affiliated company as defined in subparagraph 12 of Article 2 of the Monopoly Regulation and Fair Trade Act) to receive a contract for the relevant construction works. <Amended on Dec. 29, 2020>
(5) If a construction manager inflicts any loss on property of the project owner by intention or negligence in the course of performing construction management affairs, he or she shall compensate for such loss.
(6) Article 44 shall apply mutatis mutandis to compensation for any loss by a construction manager. In such cases, "constructor" shall be construed as "construction manager." <Amended on Apr. 30, 2019>
(7) Paragraphs (1) through (6) shall also apply to construction management performed by a construction manager at-risk.
(8) Where a constructor who performs a construction management at-risk concludes a contract with a project owner on construction management in the execution phase, the terms and conditions of the contract shall be limited to the construction works referred to in subparagraph 4 of Article 2. <Amended on Apr. 30, 2019>
[This Article Wholly Amended on May 24, 2011]
 Article 27 (Period for Estimate)
A project owner shall grant a certain period prescribed by Presidential Decree for constructors to make an estimate of the relevant construction works, before a contract for such works is concluded, if it is a free contract, and before inviting a tender, if such contract is concluded through a public tender. <Amended on Apr. 30, 2019>
[This Article Wholly Amended on May 24, 2011]
 Article 28 (Defects Liability by Contractors of Construction Works)
(1) A contractor shall be held liable to a project owner for any defects arising within a period prescribed by Presidential Decree by kind of works for up to the following applicable periods: <Amended on Aug. 11, 2015; Jun. 9, 2020>
1. For a period of 10 years from the date of completion of construction works or from the date of the commencement of the management and use of the object, whichever is earlier, where the object of such construction works is in a brick masonry structure, reinforced concrete structure, steel structure, steel framed reinforced concrete structure or other similar structure;
2. For a period of five years from the date of completion of construction works or from the date of the commencement of the management and use of the object, whichever is earlier, where the object of such construction works is in a structure, other than that referred to in subparagraph 1.
(2) Notwithstanding paragraph (1), no contractor shall be liable for any defects arising from any of the following:
1. Where the relevant defect arises as the quality, standard, etc. of any material supplied by the project owner fall short of the standards;
2. Where the relevant construction works are executed as instructed by the project owner;
3. Where the project owner uses the object of the relevant construction works in excess of the service life or designed structural load bearing capacity prescribed by related statutes or regulations.
(3) Where a defects liability period for any construction works is expressly provided for in any other statutes or regulations (excluding Articles 670 and 671 of the Civil Act), it shall be governed by the relevant statutes or regulations: Provided, That where it is separately stipulated in the contract for work based on such considerations as the performance and characteristics of the objects of construction works, as prescribed by Presidential Decree, it shall be governed by such contract for work. <Amended on Aug. 11, 2015>
(4) Paragraphs (1) through (3) shall apply mutatis mutandis to defects liability of subcontractors. In such cases, a "contractor" shall be construed as a "subcontractor", a "project owner" as a "contractor", and "from the date of the completion of construction works or from the date of the commencement of the management and use of the object, whichever is earlier" as "from the date of the completion of construction works executed by the subcontractor or from the date of the commencement of the management and use of the object, whichever is earlier". <Newly Inserted on May 14, 2014; Aug. 11, 2015>
[This Article Wholly Amended on May 24, 2011]
[Title Amended on May 14, 2014]
 Article 28-2 (Direct Performance of Construction Works)
(1) Where the amount of a contract awarded to a constructor for construction works is not more than 10 billion won and is less than the amount prescribed by Presidential Decree, the constructor shall directly perform the construction works amounting to at least the labor cost computed by the ratio prescribed by Presidential Decree, out of the total labor cost shown in the statement of calculation of the contract amount for the construction works: Provided, That he or she need not perform such works directly in cases prescribed by Presidential Decree where it is impracticable for him or her to do so. <Amended on Dec. 31, 2018; Apr. 30, 2019>
(2) A person who directly performs construction works under paragraph (1) shall notify the project owner of his or her direct performance plan, as prescribed by Presidential Decree: Provided, That the same shall not apply where a constructor who has obtained registration of a category of business for execution of specialized construction works is awarded a contract for specialized construction works. <Amended on Feb. 3, 2016; Apr. 30, 2019>
(3) A project owner may terminate the contract for the relevant construction works if the relevant constructor fails to notify him or her of the plans for direct performance under paragraph (2) or fails to perform such construction works in compliance with the direct performance plan. <Amended on Apr. 30, 2019>
(4) The project owner of construction works ordered by the State, a local government, or a public institution prescribed by Presidential Decree in receipt of a direct performance plan under paragraph (2), shall verify whether the constructor has complied with the requirements for direct performance of construction works pursuant to the main clause of paragraph (1) and report or notify the result thereof to the Minister of Land, Infrastructure and Transport: Provided, That in cases of construction works that require supervision under any related statutes or regulations, the person who conducts the supervision may be allowed to verify the compliance. <Newly Inserted on Mar. 21, 2017>
(5) Methods and procedures for verifying whether the requirements for direct performance of construction works have been complied with pursuant to paragraph (4) and other necessary matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted on Mar. 21, 2017>
[This Article Wholly Amended on May 24, 2011]
 Article 29 (Restrictions on Subcontract of Construction Works)
(1) No constructor shall subcontract all of the construction works contracted to him or her or most of the major portions prescribed by Presidential Decree of such construction works to any third constructor: Provided, That the same shall not apply where the constructor plans, manages, and coordinates any construction works contracted to him or her, as prescribed by Presidential Decree, and subcontracts to at least two persons by splitting such construction works, as prescribed by Presidential Decree. <Amended on Apr. 30, 2019>
(2) No contractor shall subcontract specialized construction works for which a contract was awarded to him or her: Provided, That construction works may be partially subcontracted if all the following requirements are met: <Amended on Dec. 31, 2018; Apr. 30, 2019>
1. The contractor shall obtain written consent from the project owner;
2. Subcontracting is necessary to improve the quality of construction works or the efficiency of execution; and meets the requirements prescribed by Presidential Decree (limited to cases where a constructor registered for the business category of performing general construction works is awarded a contract for specialized works).
(3) No subcontractor shall subcontract construction works for which he or she was awarded a subcontract to another person: Provided, That a subcontractor may subcontract construction works in either of the following cases: <Amended on Mar. 23, 2013; Dec. 31, 2018; Apr. 30, 2019>
1. Where a constructor registered for the business of performing general construction works has been awarded a subcontract and further subcontracts any construction works constituting specialized construction works, out of the construction works for which he or she has been awarded the subcontract, to another constructor registered for the business of performing the relevant specialized construction works (limited to cases where the project owner gives written consent to such subcontract, as deemed necessary to improve the quality of construction works or the efficiency of execution);
2. Where a constructor registered for the business of performing specialized construction works has been awarded a subcontract, and further subcontracts a portion of any specialized construction works he or she subcontracted to any third constructor registered for the business of performing the relevant specialized construction works, meeting all the following requirements:
(a) He or she shall meet the requirements prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport as necessary for improving the quality of the construction works or the efficiency of its execution;
(b) He or she shall obtain written consent from the contractor.
(4) If the amount of a contract awarded to a constructor for construction works is less than one billion won, the constructor shall not partially subcontract the construction works to another constructor registered for the business category of performing general construction works. <Newly Inserted on Dec. 31, 2018; Apr. 30, 2019>
(5) If a constructor registered for a business category of performing specialized works under Article 16 (1) 1 through 3 is awarded a contract for general construction works, the constructor shall not subcontract the construction works to another constructor: Provided, That if the project owner gives written consent to such subcontract, as necessary to improve the quality of construction works or the efficiency of execution, and the requirements prescribed by Presidential Decree are met, the construction works may be partially subcontracted. <Newly Inserted on Dec. 31, 2018; Apr. 30, 2019>
(6) A constructor who has subcontracted a portion of any construction works he or she has contracted (including further subcontract under the proviso of paragraph (3)) and a person who has given consent to further subcontract under paragraph (3) 2 shall notify the project owner thereof, as prescribed by Presidential Decree: Provided, That the same shall not apply to either of the following cases: <Amended on Jun. 1, 2012; Dec. 31, 2018; Apr. 30, 2019>
1. Where the project owner gives written consent under the proviso of paragraph (2), paragraph (3) 1 or the proviso of paragraph (5);
2. Where the portion to be subcontracted is the major portion of the construction works, for which the project owner makes the contract for work conditioned on a prior approval taking into account the need for quality control.
[This Article Wholly Amended on May 24, 2011]
 Article 29-2 (Managing Subcontract of Construction Works)
(1) Where a contractor subcontracts any construction works he or she has contracted, he or she shall manage subcontractors so that they comply with Article 29 (3).
(2) Where a subcontractor enters into a contract, in violation of Article 29 (3), the relevant contractor may request that the subcontractor modify the terms and conditions of such contract or terminate such contract, specifying the ground therefor.
(3) Where a subcontractor fails to comply with a request made under paragraph (2) without good cause, the relevant contractor may terminate the subcontract for the relevant construction works.
[This Article Wholly Amended on May 24, 2011]
 Article 29-3 (Restriction on Participation in Subcontracts for Construction Works)
(1) The Minister of Land, Infrastructure and Transport shall restrict the participation of any of the following constructors in subcontracts for construction works ordered by the State, a local government, or a public institution prescribed by Presidential Decree (hereafter in this Article and Article 87-3 referred to as "public construction works"): The period of restriction on participation in subcontracts in such cases shall be prescribed by Presidential Decree within a maximum of two years: <Amended on Apr. 30, 2019; Jul. 27, 2021>
1. A person against whom a disposition under Article 82 (2) 3 has been issued for a violation of the restriction on subcontracts under Article 29 (1) through (3);
2. A person who is subject to administrative fines under Article 26 (3) 4 of the Act on the Employment Improvement of Construction Workers for a failure to pay a mutual-aid installment under Article 13 (1) of that Act, and who is subject to administrative fines twice or more for the same violation committed within two years from the date on which he or she was subject to said administrative fines;
3. A person whose name is disclosed as a business owner in arrears under Article 43-2 (1) of the Labor Standards Act;
4. A person whose place of business falls under any of the following, for which the number, etc. of occurrence of industrial accidents have been published under Article 9-2 (1) of the Occupational Safety and Health Act:
(a) A place of business at which the number of persons who died due to an industrial accident defined in subparagraph 1 of Article 2 of the Occupational Safety and Health Act (hereinafter referred to as "dead victims") is at least two persons per year;
(b) A place of business where a serious accident defined in subparagraph 7 of Article 2 of the Occupational Safety and Health Act occurred and the annual industrial accident rate for the year in which the serious accident occurred is equal to or higher than the average accident rate of the same type of business when classified by size of business;
(c) A place of business where the death rate per 10,000 people (referring to the number of dead victims converted into the number of dead victims per 10,000 full-time workers per year) is equal to or higher than the average death rate per 10,000 people of the same type of business when classified by size of business;
(d) A place of business that concealed the occurrence of an industrial accident, in violation of Article 10 (1) of the Occupational Safety and Health Act;
5. Where a person against whom limitations had been placed on the employment of foreign workers under Article 20 (1) 1 of the Employment of Foreign Workers, on the ground that the person employed foreign workers without the employment permission under Article 8 (4) of that Act or without the certification of exceptionally permissible employment under Article 12 (3) of that Act, became subject to a disposition issued under Article 32 (1) 8 of the Act;
6. A person who was punished under Article 94 or 95 of the Immigration Act or became subject to a disposition under Article 102 (1) of that Act, on the ground that the person employed a person who did not have the status of stay for job-seeking activities, in violation of Article 18 (3) of that Act, or on the ground that the person employed an alien who had no permission to change or add the workplace, in violation of Article 21 (2) of that Act.
(2) When a constructor becomes subject to a disposition issued under subparagraph of paragraph (1), the head of the administrative agency that issues the disposition shall notify the Minister of Land, Infrastructure and Transport of the fact. <Amended on Apr. 30, 2019>
(3) When restricting participation in subcontracts under paragraph (1), the Minister of Land, Infrastructure and Transport shall publish relevant facts immediately through the knowledge information system of construction industry under Article 24 (3).
(4) The Minister of Land, Infrastructure and Transport shall give notification (including notification given by using a knowledge information system of construction industry under Article 24 (3)) to a constructor against whom restrictions are placed on participation in subcontracts of the details of such restrictions by not later than seven days before such restrictions on participation in subcontracts become effective. <Amended on Apr. 30, 2019>
(5) No contractor shall award a subcontract for public construction works to any constructor against whom restrictions on participation in subcontracts are effective, and no constructor shall accept any subcontract during the period in which the constructor is subject to restrictions on participation in subcontracts. <Amended on Apr. 30, 2019>
(6) If the project owner of public construction works finds any person who is subject to restrictions on participation in subcontracts, among subcontractors of relevant construction works, the project owner shall request the contractor to replace the subcontractor, and the contractor shall comply with such request for replacement, except when there is good cause not to do so.
(7) Notwithstanding paragraph (1), the Minister of Land, Infrastructure and Transport can not restrict participation in subcontracts after the lapse of five years from the time the information under paragraph (2) was provided. <Amended on Jun. 9, 2020>
[This Article Newly Inserted on Dec. 18, 2018]
(4) Deleted. <Dec. 31, 2004>
 Article 31 (Inspections of Propriety of Subcontracts)
(1) Where deeming that a subcontractor is deemed substantially inappropriate for performing construction works, or the subcontract price does not exceed the price computed in the ratio prescribed by Presidential Decree, a project owner may inspect the execution capacity of the subcontractor, and the propriety of the terms and conditions of the relevant subcontract, etc.
(2) Where deeming that a subcontractor is deemed substantially inappropriate for performing construction works, or the subcontract price falls short of the price computed in the ratio prescribed by Presidential Decree, the State, a local government, or a public institution prescribed by Presidential Decree, as a project owner, shall inspect the execution capacity of the subcontractor, and the propriety of the terms and conditions of the relevant subcontract, etc.
(3) Where an inspection conducted under paragraph (1) or (2) reveals that the execution capacity of a subcontractor or the terms and condition of a subcontract are inappropriate, a project owner may request the relevant contractor to change the subcontractor or to modify the terms and conditions of the subcontract, specifying the ground therefor. In such cases, where an inspection is conducted under paragraph (2), the relevant project owner shall request the contractor to replace the subcontractor or amend the terms and conditions of the subcontract, and the contractor shall comply with such request, except when there is good cause not to do so. <Amended on Dec. 26, 2017>
(4) Where a contractor’s failure to comply with a request made under paragraph (3) without good cause is likely to seriously affect the result of works, the relevant project owner may terminate the contract for the relevant construction works.
(5) The project owner referred to in paragraph (2) shall establish a subcontract inspection committee to inspect the execution capacity of subcontractors, the propriety of the terms and conditions of subcontracts, etc.
(6) The criteria for inspection of the propriety of subcontracts, procedures for requesting the replacement of subcontractors or the amendment of terms and conditions of subcontracts under paragraphs (1) through (3) and for complying with such request and other necessary matters and matters necessary for the establishment and composition of subcontract inspection committees under paragraph (5), the methods of conducting inspections, etc. shall be prescribed by Presidential Decree. <Amended on Dec. 26, 2017>
[This Article Wholly Amended on May 24, 2011]
 Article 31-2 (Submission of Subcontract Plans)
(1) Where a constructor intends to be awarded a contract for any construction works prescribed by Presidential Decree and ordered by the State, a local government, or a public institution prescribed Presidential Decree, he or she shall submit to the project owner a subcontract plan that includes the main types and volume of the construction works to be subcontracted and the method of selecting subcontractors, as prescribed by Presidential Decree in order to ensure the fairness of subcontracting and efficient performance of the construction works. In such cases, the project owner shall examine whether the subcontract plan submitted is appropriate and supervise whether the construction works are performed in accordance with the subcontract plan. <Amended on Feb. 3, 2016; Apr. 30, 2019>
(2) Where the project owner requests a constructor to submit a subcontract plan for any construction works to which paragraph (1) is not applied by deeming that it is necessary to ensure the fairness of subcontracting and the efficiency of the construction works, the constructor shall comply with such request. <Amended on Apr. 30, 2019>
[This Article Wholly Amended on May 24, 2011]
 Article 31-3 (Disclosure of Contract Documents for Subcontracted Works)
(1) Where a person has subcontracted construction works ordered by the State, a local government, or a public institution prescribed by Presidential Decree, the relevant project owner shall disclose the following matters in a way that any person can see, as prescribed by Presidential Decree: <Amended on Dec. 31, 2018>
1. Name of construction works;
2. Contract price of a contractor and bid price rate;
3. Contractor (trade name, representative and the seat of its place of business);
4. Subcontractor (trade name, representative, type of business and the seat of its place of business);
5. Type of construction subcontracted;
6. Contract price on the part of a subcontract, subcontract price and subcontract rate.
(2) A contractor shall notify the constructor to whom the contractor intends to award a subcontract, for part of the construction works for which the contractor was awarded under a contract, of the following matters relating to the subcontracted construction works, by the method prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, before the subcontract is concluded in cases of a negotiated subcontract, or before bids are invited for the subcontract in cases of a competitive subcontract: Provided, That the design drawings referred to in subparagraph 2 shall be provided only where the project owner has provided them: <Newly Inserted on Dec. 31, 2018; Apr. 30, 2019>
1. Where the contract has been awarded by the State, a local government, or a public institution prescribed by Presidential Decree: Design drawings, the bill of quantities, the price estimated by the project owner (if no estimated price is available, the basic amount) and the construction period for the subcontracted works;
2. Where the contract has been awarded by a person other than those referred to in subparagraph 1: Design drawings, the bill of quantities and the construction period for the subcontracted works.
(3) The project owner referred to in paragraph (2) 1 shall ensure that a contractor fulfills his or her obligation to provide documents for subcontracted works under that paragraph. <Newly Inserted on Dec. 31, 2018>
[This Article Newly Inserted on May 14, 2014]
[Title Amended on Dec. 31, 2018]
 Article 32 (Status of Subcontractors)
(1) Each subcontractor shall have the same obligation to the project owner as that of a contractor with respect to any construction works he or she has subcontracted.
(2) Paragraph (1) shall not affect the legal relations between a contractor and a subcontractor.
(3) If a contractor neglects to give the notice under Article 29 (6) or omits some information in giving such notice, the relevant subcontractor may directly notify the project owner or the contractor of the type of works performed by him or her, the construction period, etc. <Amended on Dec. 31, 2018>
(4) Articles 34 (1) and (8) and 35 (excluding Article 35 (2) 6 to a construction machinery lessor; and Article 35 (2) 5 and 6 to a person who manufactures and supplies components as well as to a lessor of temporary equipment and materials) shall apply mutatis mutandis to the payment of prices to a construction machinery lessor, a person who manufactures and supplies components for construction works (hereinafter referred to as "person manufacturing and supplying components"), and a person who leases out equipment and materials temporarily installed or used for construction works (hereinafter referred to as "lessor of temporary equipment and materials"), as stipulated by Ordinance of the Ministry of Land, Infrastructure and Transport. In such cases, "project owner" shall be construed as "project owner or contractor," "contractor" as "contractor or subcontractor," "subcontractor" as "construction machinery lessor, a person manufacturing and supplying components, or a lessor of temporary equipment and materials" and "subcontract prices" as "the rental for construction machinery, prices for components for construction works, or the rental for temporary equipment and materials", respectively: Provided, That in any case described in Article 35 (2), (3), (5), and (6), "project owner" shall be deemed "person who has awarded a contract for construction works to the constructor entering into a contract with a construction machinery lessor, a person manufacturing and supplying components, or a lessor of temporary equipment and materials"; "contractor" shall be construed as "constructor entering into a contract with a construction machinery lessor, a person manufacturing and supplying components, or a lessor of temporary equipment and materials"; "subcontractor" as "construction machinery lessor; a person manufacturing and supplying components, or a lessor of temporary equipment and materials"; and "subcontract prices" as "the rental for construction machinery, prices for components for construction works, or the rental for temporary equipment and materials," respectively. <Amended on Mar. 23, 2013; May 14, 2014; Dec. 18, 2018; Apr. 30, 2019; Apr. 7, 2020>
[This Article Wholly Amended on May 24, 2011]
 Article 33 (Hearing the Opinions of Subcontractors)
Where a contractor has subcontractors in performing any construction works he or she has contracted, he or she shall hear opinions from such subcontractors in advance about the construction methods and process of the performance of the construction works and other matters deemed necessary.
[This Article Wholly Amended on May 24, 2011]
 Article 34 (Payment of Subcontract Prices)
(1) Where a contractor receives completion money or progress payment for any construction works he or she has contracted, he or she shall make payment to a subcontractor in cash within 15 days from the date when he or she receives the completion money or progress payment (referring to the due date of draft where the contractor receives the value of works by draft from the project owner), respectively, in accordance with the following classifications:
1. Where he or she receives completion money: Subcontract price;
2. Where he or she receives a progress payment: Amount equivalent to the portion executed by the subcontractor.
(2) In concluding a contract for work, a contractor shall issue a guarantee for the payment of an appropriate subcontract price to the relevant subcontractor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That the contractor need not issue such guarantee in cases determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>
(3) Parties to a contract for construction works shall clarify the amount incurred in issuing a payment guarantee of the subcontract price under paragraph (2) on the statement of the contract price calculation of the relevant construction works, as prescribed by Presidential Decree.
(4) Where a contractor receives an advance payment from a project owner, the contractor shall pay an advance payment to his or her subcontractors according to the details and proportion of the advance payment he or she receives within 15 days from the date of receipt (referring to the date a subcontract is concluded where the contractor receives the advance payment before signing the subcontract) to ensure that the subcontractors can start subcontracted works, such as purchasing or leasing materials, renting construction machine, or hiring construction workers. In such cases, the contractor may request a subcontractor to provide a guarantee in preparation for a case that the subcontractor may return the advance payment. <Amended on Jun. 1, 2012; Jul. 27, 2021>
(5) A mutual aid association established under Article 54 or any agency authorized to perform guarantee affairs under other statutes and regulations shall issue a guarantee agreement (including the issuance of a modified guarantee) referred to in paragraph (2) that certifies the payment of the subcontract price to a contractor, or terminates a guarantee agreement, it shall promptly notify a project owner and a contractor of details thereof, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013; May 14, 2014>
(6) A project owner shall confirm the terms and conditions of the payment guarantee of the subcontract price notified under paragraph (5), and where such confirmation finds that any of the terms and conditions are inappropriate, the project owner may request the contractor to correct them.
(7) Where a project owner is the State, a local government, or a public institution prescribed by Presidential Decree, he or she shall confirm whether such contractor has issued a guarantee under paragraph (2) to the subcontractor, so as to protect the subcontract price. <Newly Inserted on Feb. 3, 2016>
(8) If a contractor pays the completion money, progress payment or advance payment that he or she received from the project owner, after the due date specified in paragraph (1) or (4), he or she shall pay interest thereon at the interest rate determined and publicly notified by the Fair Trade Commission under Article 13 (8) of the Fair Transactions in Subcontracting Act for the overdue period within a maximum of 25/100 per annum. <Newly Inserted on Dec. 18, 2018>
(9) A contractor for construction works (excluding the construction works determined by Ordinance of the Ministry of Land, Infrastructure and Transport, such as construction works in a small scale) awarded by the State, a local government, or a public institution prescribed by Presidential Decree and his or her subcontractors shall invoice and receive construction prices (including advance payment, progress payment, completion money, and prepayment (referring to the amount that the contractor or subcontractor pays in advance for materials, equipment, subcontract prices, etc. before the project owner or contractor pays the progress payment or completion money to the contractor or subcontractor); hereinafter the same shall in this paragraph) by using the system referred to in Article 9-2 (1) of the Electronic Procurement Utilization and Promotion Act and shall not use the prices payable to subcontractors, construction workers, construction machinery lessors, lessors of temporary equipment and materials, the persons who manufacture and supply parts for construction works, etc., out of the received construction prices. In such cases, matters necessary for methods, standards, procedures, etc. for requesting and paying for construction prices shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted on Dec. 18, 2018; Jul. 27, 2021>
[This Article Wholly Amended on May 24, 2011]
 Article 34-2 (Performance Bond for Subcontract)
(1) In issuing a payment guarantee of the subcontract price under Article 34 (2), a contractor may request a subcontractor to issue a performance bond for the subcontract in the amount equivalent to 10/100 of the subcontract price, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(2) Where a contractor revokes or terminates a subcontract unilaterally for any of the following reasons, the contractor shall not be able to request the institution that has issued a performance bond for the subcontract under paragraph (1) to pay the amount of payment bond for the subcontract: Provided, That the cases for which the subcontractor is liable shall be excluded herefrom:
1. Where the period of works is delayed, because the contractor has failed to pay the subcontract price within the deadline prescribed by the contract for work or related statutes or regulations;
2. Where the nonfulfillment of subcontract has occurred due to the delay in reaching agreement on the settlement of additional or modified works, etc. ordered under Article 36-2 (1).
[This Article Newly Inserted on Aug. 11, 2015]
 Article 35 (Direct Payment of Subcontract Prices)
(1) In any of the following cases, a project owner may make a direct payment of the subcontract price to a subcontractor for the portion of works performed by a subcontractor. In such cases, the obligation of the project owner to pay the price to the contractor shall be deemed extinguished within the limits of his or her payment to the subcontractor: <Amended on Mar. 23, 2013>
1. Where the construction works ordered by the State, a local government, or a public institution prescribed by Presidential Decree falls under any of the following cases and the project owner deems it necessary for the protection of the subcontractor:
(a) Where the contractor delays the payment of the subcontract price referred to in Article 34 (1) at least once;
(b) Where a contract for work is concluded at the amount which falls short of the ratio determined by Ordinance of the Ministry of Land, Infrastructure and Transport in comparison with the estimated construction work cost;
2. Where a project owner deems that there exists an obvious ground, such as the contractor's bankruptcy, on which the contractor is unable to pay the subcontract price;
3. Deleted. <Dec. 18, 2012>
(2) In any of the following cases, a project owner shall make a direct payment of the subcontract price to the subcontractor for the portion of works performed by a subcontractor: <Amended on Dec. 18, 2012; May 14, 2014>
1. Where the project owner and the contractor or the project owner, the contractor, and the subcontractor have reached an agreement by specifying their intentions that the project owner pays the subcontract price directly to the subcontractor and the methods of and procedures for making such direct payments;
2. Where a final decision is rendered to order the payment of the subcontract price for the portion of works performed by the subcontractor;
3. Where the contractor delays the payment of the subcontract price referred to in Article 34 (1) on at least two occasions and the subcontractor requests a direct payment of the subcontract price to the project owner;
4. Where the contractor becomes unable to pay the subcontract price on account of the contractor's default, bankruptcy or others or the cancellation of the contractor's registration and the subcontractor requests a direct payment of the subcontract price to the project owner;
5. Where the contractor fails to issue a guarantee which certifies the payment of the subcontract price under Article 34 (2) to the subcontractor without good cause and the project owner becomes aware of such fact or the subcontractor requests a direct payment of the subcontract price to the project owner;
6. Where the contractor enters into a contract for construction works ordered by the State, a local government or a public institution prescribed by Presidential Decree at the price below the rate prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport compared with the estimated price of construction works, and the subcontractor requests the project owner to directly pay the subcontract price.
(3) Where any ground falling under any subparagraph of paragraph (2) arises and a project owner directly pays the subcontractor the subcontract price, the obligation of the project owner to pay the contract price to a contractor and the obligation of the contractor to pay the subcontract price to the subcontractor shall be deemed extinguished to the extent that the project owner or the contractor pays within the limits of the payment to the contractor or subcontractor.
(4) In any case falling under any item of paragraph (1) 1, where it is deemed that a contractor is likely to sustain a loss due to causes attributable to a subcontractor, a contractor may request a project owner to suspend a direct payment of the subcontract price by specifying the ground therefor.
(5) Where a project owner receives a request to suspend a direct payment of the subcontract price to a subcontractor, accompanied by the documents substantiating that such subcontractor delays in payment of wages, materials costs, etc. for the subcontract, the project owner need not pay the subcontract price directly to the subcontractor, notwithstanding paragraph (2).
(6) Where it is necessary to confirm the portion of works performed by a subcontractor in order for the subcontractor to receive a direct payment of the subcontract price from a project owner in accordance with paragraph (1) or (2), a contractor shall take necessary measures without delay.
(7) Where the subcontract price is directly paid pursuant to any of the subparagraphs of paragraph (1) or paragraph (2) 3 or 4, the method of and procedures for payment shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>
[This Article Wholly Amended on May 24, 2011]
 Article 36 (Adjustment of Subcontract Prices Following Design Changes)
(1) Where a contractor receives an increase in the construction amount from a project owner due to a design change or fluctuation in economic conditions after subcontract, he or she shall make an increased payment according to the details and proportion of the increases in construction amount he or she receives if additional costs are required for the completion of an object for the same causes. If the constructor receives a decrease in the construction amount, he or she shall make a decreased payment in proportion thereto.
(2) Where the amount of an ordered construction works has been paid to a contractor as adjusted under a design change or fluctuation in economic conditions, a project owner shall notify a subcontractor (including any person awarded a subcontract by the subcontractor under Article 29 (3)) of the ground for and details of an adjustment of such amount, as prescribed by Presidential Decree.
[This Article Wholly Amended on May 24, 2011]
 Article 36-2 (Written Confirmation on Additional or Modified Works)
(1) Where a contractor requests a subcontractor to perform the works not originally included in the statement of the subcontract quotation (hereinafter referred to as "additional or modified works") due to design change or other reasons, he or she shall request in writing the matters necessary in connection with the additional or modified works, such as the details, amount and period of the additional or modified works, from the subcontractor of the relevant works. In such cases, the contractor may obtain written confirmation from the project owner, if necessary.
(2) Matters necessary for the written request, project owner's confirmation, etc. under paragraph (1) shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Aug. 11, 2015]
 Article 37 (Inspections and Delivery)
(1) Where a contractor is notified of a completed or accomplished portion of subcontracted works by a subcontractor, he or she shall conduct an inspection to confirm such fact. In such cases, the contractor shall notify the subcontractor in writing of findings from the inspection within 10 days after receipt of such notification. <Amended on Jun. 1, 2012>
(2) Where subcontracted works are completed as designed according to an inspection conducted under paragraph (1), a contractor shall accept such subcontracted works without delay.
[This Article Wholly Amended on May 24, 2011]
 Article 38 (Prohibition against Unfair Practices)
(1) No project owner or contractor shall force a contractor or a subcontractor to engage in any act that is deemed disadvantageous to the contractor or subcontractor in relation to the performance of contracted works (including subcontracted works), for instance by designating a material supplier. <Amended on Oct. 20, 2020>
(2) No contractor shall require a subcontractor to enter into an agreement that contains any special agreements unfairly restricting the contractual interests of the subcontractor in violation of Article 22, 28, 34, 36 (1), 36-2 (1), or 44, or other related statutes or regulations. In such cases, the types of unfair special agreements shall be prescribed by Presidential Decree. <Amended on Jun. 1, 2012; Aug. 11, 2015>
(3) Where unfair special agreements under paragraph (2) are included in a subcontract, etc. on which a subcontractor receives notification pursuant to Article 29 (6) when a project owner is the State, a local government, or a public institution prescribed by Presidential Decree, the subcontractor shall request the contractor to revise the subcontract, etc. by clearly specifying reasons for the revision thereof, and notify a government office with which the relevant constructor has registered of such fact. <Newly Inserted on May 14, 2014; Dec. 31, 2018; Apr. 30, 2019>
[This Article Wholly Amended on Dec. 29, 2009]
 Article 38-2 (Prohibition of Acquisition or Provision of Property through Improper Solicitations)
(1) No project owner, contractor, subcontractor (including an executive officer or employee of the relevant corporation, when the project owner, contractor, or subcontractor is a corporation), or interested person shall acquire or provide property or proprietary interest through improper solicitation in connection with the conclusion of a contract for work or the performance of construction works. <Amended on Feb. 3, 2016>
(2) No one who participates as an examiner in a tender for construction works ordered by the State, a local government, or a public institution prescribed by Presidential Decree shall acquire property or proprietary interest through improper solicitation in connection with his or her duties.
(3) A corporation or the representative, a commercial employee, or any other executive officer or employee thereof who participates in a tender for construction works ordered by the State, a local government, or a public institution prescribed by Presidential Decree shall not acquire or provide property or proprietary interest through improper solicitation in connection with his or her duties.
[This Article Wholly Amended on May 24, 2011]
 Article 38-3 (Prohibition of Retaliatory Actions)
(1) No project owner shall limit contract opportunities or suspend transactions against a contractor, or conduct any other acts that disadvantages the contractor (hereafter in this Article referred to as "acts to disadvantage, etc.") on the ground that the contractor has conducted any of the following acts:
1. Filing a report with a related institution, etc. on a violation of this Act by the project owner;
2. Filing request for mediation with the Construction Dispute Mediation Committee under Article 69.
(2) Paragraph (1) shall apply mutatis mutandis to acts to disadvantage, etc. committed by a contractor against a subcontractor and acts to disadvantage, etc. against a construction machinery lessor, a person manufacturing and supplying components or lessor of temporary equipment and materials by a constructor. In such cases, the term "project owner" shall be construed as "contractor or constructor", and the term "contractor" as "subcontractor, construction machinery lessor, person manufacturing and supplying components or lessor of temporary equipment and materials". <Amended on Apr. 30, 2019; Apr. 7, 2020>
[This Article Newly Inserted on Feb. 3, 2016]
CHAPTER IV EXECUTION AND TECHNICAL MANAGEMENT
 Article 39 Deleted. <Apr. 15, 1999>
 Article 40 (Assignment of Construction Engineers)
(1) A constructor shall assign at least one construction engineer to a construction site for the execution management of construction works and other technical management, as prescribed by Presidential Decree: Provided, That the constructor need not assign any construction engineer where the relevant project owner gives a written consent in circumstances meeting requirements prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, such as discontinuance of construction works of the relevant type for a certain period, where no impediment is caused to the execution management, quality and safety of the construction works. <Amended on Mar. 23, 2013; Aug. 14, 2018; Apr. 30, 2019>
(2) No construction engineer assigned to a construction site pursuant to paragraph (1) shall desert the construction site without good cause, unless he or she obtains consent from the project owner. <Amended on Aug. 14, 2018>
(3) Where a project owner deems that a construction engineer assigned to a construction site pursuant to paragraph (1) has no capacity to perform his or her duties due to physical weakness, etc., the project owner may request the contractor to replace the construction engineer. In such cases, the contractor shall comply therewith except when there is good cause not to do so. <Amended on Aug. 14, 2018>
[This Article Wholly Amended on May 24, 2011]
[This Article Newly Inserted on Aug. 14, 2018]
 Article 41 (Restrictions on Executors of Construction Works)
(1) Construction works (excluding minor construction works referred to in the proviso of Article 9 (1); hereafter in this Article the same shall apply) or renovation of any of the following buildings shall be performed by constructors: Provided, That construction works other than the following and construction works of buildings prescribed by Presidential Decree, including structures for agricultural or livestock purposes, shall be directly built by the owner of such building or contracted out to a constructor: <Amended on Aug. 4, 2011; Feb. 3, 2016; Dec. 26, 2017; Apr. 30, 2019>
1. Residential buildings, the total floor area of which exceeds 200 square meters;
2. Any of the following buildings, the total floor area of which is not more than 200 square meters:
(a) A multi-unit house as defined in the Building Act;
(b) A multi-dwelling house, a multi-unit house, an official residence, or other cases prescribed by Presidential Decree, among detached houses defined in the Building Act;
(c) Any of the buildings prescribed by Presidential Decree, such as schools and hospitals, among non-residential buildings used by many people;
3. Deleted; <Dec. 26, 2017>
4. Deleted; <Dec. 26, 2017>
(2) Construction works for establishing any of the following new public-use facilities shall be performed by constructors: <Amended on Apr. 30, 2019>
1. Facilities prescribed by Presidential Decree among sports facilities under the Installation and Utilization of Sports Facilities Act;
2. Urban parks under the Act on Urban Parks and Green Areas or park facilities prescribed by Presidential Decree which are to be established within urban parks;
3. Park facilities prescribed by Presidential Decree which are to be established within natural parks under the Natural Parks Act;
4. Facilities prescribed by Presidential Decree among entertainment facilities under the Tourism Promotion Act.
[This Article Wholly Amended on May 24, 2011]
 Article 42 (Posting Construction Signs)
(1) A constructor shall display a sign that indicates the name of construction works, the project owner, the builder, the work period, etc. in a location that can be easily seen by people in the vicinity of the construction site, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013; Apr. 30, 2019>
(2) When a constructor has completed construction works determined by Ordinance of the Ministry of Land, Infrastructure and Transport, he or she shall permanently install a signboard that indicates the project owner of the completed construction works, the designer, the supervisor, and the trade name of constructor who has performed such works, representative's name, etc. in a location that can be easily seen by people, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That in cases of building works, seismic performance categories under Article 48-2 of the Building Act and seismic capacity under Article 48-3 of the same Act shall be included in the signboard. <Amended on Mar. 23, 2013; Mar. 21, 2017; Apr. 30, 2019>
(3) A project owner shall appropriate expenses for displaying signs and for installing signboards under paragraphs (1) and (2) in the relevant construction costs.
[This Article Wholly Amended on May 24, 2011]
 Article 43 Deleted. <Apr. 15, 1999>
 Article 44 (Constructors’ Liability for Damages)
(1) Where a constructor inflicts any loss or damage to any third person by unconscientiously performing construction works, by intention or negligence, he or she shall be held liable for such loss or damage. <Amended on Apr. 30, 2019>
(2) Where any loss or damage referred to in paragraph (1) arises from gross negligence of a project owner, a constructor may exercise a right to indemnity against the project owner. <Amended on Apr. 30, 2019>
(3) Where a subcontractor inflicts any loss or damage to any third person by unconscientiously performing subcontracted construction works, by intention or negligence, a contractor shall be held liable for such loss or damage jointly and severally with the subcontractor.
(4) Where a contractor compensates for any loss or damage pursuant to paragraph (3), he or she may exercise a right to indemnity against the subcontractor held liable for such loss or damage.
[This Article Wholly Amended on May 24, 2011]
[Title Amended on Apr. 30, 2019]
CHAPTER V RATIONALIZATION OF MANAGEMENT AND ASSISTANCE TO SMALL OR MEDIUM CONSTRUCTORS
 Article 45 (Endeavor to Rationalize Management)
A constructor shall endeavor to rationalize management of his or her business, such as the establishment of orderly contract practices, proper performance of construction works, and sound financial management and to develop construction technologies. <Amended on Apr. 30, 2019>
[This Article Wholly Amended on May 24, 2011]
 Article 46 (Assistance to Small or Medium Constructors)
(1) The Minister of Land, Infrastructure and Transport may establish and implement assistance policies for small or medium constructors in consultations with the heads of related central administrative agencies. <Amended on Mar. 23, 2013; Apr. 30, 2019>
(2) The heads of related administrative agencies and public institutions prescribed by Presidential Decree shall fully cooperate in the implementation of assistance policies for small or medium constructors referred to in paragraph (1). <Amended on Mar. 23, 2013; Apr. 30, 2019>
[This Article Wholly Amended on May 24, 2011]
[Title Amended on Apr. 30, 2019]
 Article 47 (Measures for Assistance to Small or Medium Constructors)
(1) Where it is necessary to assist small or medium constructors, the Minister of Land, Infrastructure and Transport may request any State agency, local government, or public institution prescribed by Presidential Decree that orders construction works to expand the opportunity of small or medium constructors to participate therein and to take other necessary measures. <Amended on Mar. 23, 2013; Apr. 30, 2019>
(2) Where it is deemed necessary to assist small or medium constructors, the Minister of Land, Infrastructure and Transport may set the minimum limits of the construction cost for which a constructor that is a large enterprise may be awarded a contract, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Apr. 30, 2019>
[This Article Wholly Amended on May 24, 2011]
[Title Amended on Apr. 30, 2019]
 Article 48 (Mutually-Beneficial Cooperation between Constructors)
(1) The Minister of Land, Infrastructure and Transport may provide guidance on subcontracts, joint contracts, etc. to maintain and develop mutually-beneficial cooperative relations between constructors registered for the business category of performing general construction works and constructors registered for the business category of performing specialized construction works, and mutually-beneficial cooperative relations between constructors who are large enterprises and constructors who are small or medium constructors, for the balanced development of construction business and the efficient performance of construction works. <Amended on Mar. 23, 2013; Apr. 30, 2019>
(2) The Minister of Land, Infrastructure and Transport may guide any constructor registered for the business category of performing general construction works to register, as a cooperator, a constructor registered for the business category of performing construction works related to the works to be performed, in order to maintain mutually-beneficial cooperative relations between constructors. <Amended on Mar. 23, 2013; Apr. 30, 2019>
(3) A constructor who has obtained registration and a cooperator who has filed for registration pursuant to paragraph (2) shall maintain mutually-beneficial cooperation with respect to the following: <Amended on Apr. 30, 2019>
1. Preferential selection of cooperators as joint contractors or subcontractors where they are awarded a contract or subcontract for construction works;
2. Exchanges of technology and information on construction works;
3. Assistance in terms of human resources, funds, or technical development necessary for performing construction works.
(4) The Minister of Land, Infrastructure and Transport may request any related agency to cooperate in giving preferential treatment to an exemplary constructor registered for the business category of performing general construction works at the time of appraising the execution capacity or ordering construction works, by appraising the records of provision of guidance referred to in paragraphs (1) and (2) or the cooperative relations with cooperators. <Amended on Mar. 23, 2013; Apr. 30, 2019>
(5) Matters necessary for guidance referred to in paragraph (1), and registration of cooperators, and cooperation between constructors referred to in paragraph (2) shall be prescribed by Presidential Decree.
[This Article Wholly Amended on May 24, 2011]
[Title Amended on Apr. 30, 2019]
 Article 48-2 (Evaluation of Employment of Construction Workers)
(1) For the purpose of improving the treatment of construction workers, the Minister of Land, Infrastructure and Transport in receipt of an application from a constructor may evaluate the status of employment of construction workers by the constructor, efforts to improve welfare, and the like (hereinafter referred to as "evaluation of employment of construction workers") and may request related agencies to give preferential treatment in assessing execution capacity or such to the constructors who are evaluated to be outstanding. <Amended on Apr. 30, 2019>
(2) Where necessary to evaluate the employment of construction workers, the Minister of Land, Infrastructure and Transport may request the heads of related institutions and organizations to provide data prescribed by Presidential Decree, such as data on the employment insurance, certification of family-friendliness, creation of intra-company labor welfare fund, and the status of project implementation of a constructor who has applied for the evaluation of employment of construction workers. In such cases, the heads of relevant institutions and organizations requested to provide data shall comply with such request, unless there is a compelling reason not to do so. <Newly Inserted on Apr. 7, 2020>
(3) The methods and procedure for the evaluation of employment of construction workers and other necessary matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Apr. 7, 2020>
[This Article Newly Inserted on Dec. 18, 2018]
 Article 49 (Fact-Finding Surveys on Constructors)
(1) Where it is deemed necessary to determine whether it meets the standards for registration, the propriety of subcontracting, and constructors conscientiously perform construction works, the Minister of Land, Infrastructure and Transport or the head of a local government (limited to any case necessary to deal with the business affairs entrusted under Article 91 (1); hereafter in this Article the same shall apply) may require constructors to report on their affairs, financial management status and situations, etc., of execution within a specified period, and require public officials under his or her jurisdiction to investigate the management status of constructors or to inspect materials or facilities necessary for performing works, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Apr. 30, 2019; Jun. 9, 2020>
(2) The Minister of Land, Infrastructure and Transport or the head of a local government may require a certified public accountant, tax accountant, or specialized management diagnosing institution meeting requirements determined by Ordinance of the Ministry of Land, Infrastructure and Transport to diagnose the financial management status of constructors if necessary in any of the following cases: <Amended on Jan. 17, 2012; Jun. 1, 2012; Mar. 23, 2013; Apr. 30, 2019>
1. To investigate the management status of constructors as referred to in paragraph (1);
2. To confirm whether a constructor or a person who intends to file for registration of construction business under Article 9 meets the standards for registration of construction business.
(3) Where the Minister of Land, Infrastructure and Transport or the head of a local government deems it necessary in order to investigate the management status of constructors pursuant to paragraph (1), he or she may request project owners of construction works, construction engineering business entities under subparagraph 9 of Article 2 of the Construction Technology Promotion Act, and other construction works-related institutions (hereafter in this Article referred to as "construction works-related institutions, etc.") to submit data on the execution status of construction works. <Amended on Mar. 23, 2013; May 22, 2013; Feb. 3, 2016; Apr. 30, 2019; Mar. 16, 2021>
(4) Where the Minister of Land, Infrastructure and Transport or the head of a local government intends to conduct an investigation under paragraph (1), he or she shall notify a person to be investigated of the relevant investigation plan which includes the date, reasons, and details of such investigation, by seven days prior to the investigation: Provided, That he or she need not give prior notice where an immediate investigation is necessary or the giving prior notice would likely result in the destruction of evidence or other harm to the investigation thereby defeating the purpose of such investigation <Amended on Mar. 23, 2013>
(5) Any public official who conducts an investigation or inspection pursuant to paragraph (1) shall carry a certificate indicating his or her authority and produce it to related persons and shall provide, on entrance to and exit from the places related to the investigation, to the related person a document stating the name, time of entrance and exit, purpose, etc.
(6) The Minister of Land, Infrastructure and Transport may order the head of a local government to take measures, such as fact-finding surveys and the like under paragraphs (1) through (3), and to file a report on the results of such measures. <Amended on Mar. 23, 2013>
(7) Notwithstanding paragraphs (1) and (6), the Minister of Land, Infrastructure and Transport shall investigate the management status of constructors or request the heads of local governments to conduct the investigation and report the results thereof, at least once a year, as prescribed by Presidential Decree. <Newly Inserted on Feb. 3, 2016; Apr. 30, 2019>
[This Article Wholly Amended on May 24, 2011]
[Title Amended on Apr. 30, 2019]
 Article 49-2 (Request for Data)
The Minister of Land, Infrastructure and Transport may request the heads of related institutions to provide data about the Employment Insurance, the National Pension Insurance, the National Health Insurance and the Industrial Disaster Compensation Insurance for the persons having relevant technological capabilities, as data necessary to ascertain whether a construction business meets the standards for registration. In such cases, the heads of related institutions so requested shall comply with such request in the absence of special circumstances.
[This Article Newly Inserted on Dec. 31, 2018]
CHAPTER VI ORGANIZATION OF CONSTRUCTORS
 Article 50 (Establishment of Association)
(1) Constructors may establish a constructors' association (hereinafter referred to as "Association") for the maintenance of the dignity of constructors, development of construction technologies, and sound development of construction business. <Amended on Apr. 30, 2019>
(2) The Association shall be a corporation.
(3) The Association shall come into existence upon registering its incorporation at the seat of its principal office.
(4) Qualifications of members and executives of associations and other matters shall be determined by the articles of association.
(5) Matters to be entered in the articles of association and matters necessary for the supervision of Associations shall be prescribed by Presidential Decree.
[This Article Wholly Amended on May 24, 2011]
 Article 51 (Procedures for Authorization on Establishment of Associations)
(1) To establish an Association, it shall be promoted by at least five constructors who have membership, obtain consent of at least the number of constructors prescribed by Presidential Decree from constructors who have membership, formulate the articles of association at an inaugural general meeting, and file an application for authorization with the Minister of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013; Apr. 30, 2019>
(2) When the Minister of Land, Infrastructure and Transport grants authorization of an application filed under paragraph (1), he or she shall announce it publicly. <Amended on Mar. 23, 2013>
(3) Necessary affairs until an Association is duly formed and its executives are appointed shall be performed by promoters.
[This Article Wholly Amended on May 24, 2011]
 Article 52 (Recommendation and Consultation)
(1) Each Association may recommend matters on construction business to the Government, and shall advise the Government on construction business.
(2) Where each Association finds that any member or constructor who has membership violates this Act, it shall verify the details thereof and report it to the Minister of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013; Apr. 30, 2019>
[This Article Wholly Amended on May 24, 2011]
 Article 53 (Application Mutatis Mutandis of the Civil Act)
Except as otherwise provided for in this Act, the provisions of the Civil Act pertaining to incorporated associations shall apply mutatis mutandis to the Association.
[This Article Wholly Amended on May 24, 2011]
CHAPTER VII CONSTRUCTION-RELATED MUTUAL-AID ASSOCIATIONS AND CONSTRUCTION GUARANTEES
 Article 54 (Establishment of Mutual-Aid Associations)
(1) Constructors may establish a mutual-aid association to engage in autonomous economic activities, and provide various guarantees, funds loans, etc. necessary to run construction businesses through mutual cooperative organizations between constructors. <Amended on Apr. 30, 2019>
(2) Each mutual-aid association referred to in paragraph (1) shall be a corporation.
(3) The mutual aid association shall come into existence upon registering its incorporation at the seat of its principal office.
(4) Qualification of members of each mutual-aid association, matters concerning executives, contribution and loans, and the operation thereof shall be determined by the articles of association.
(5) Matters to be entered in the articles of association, subject matter of guarantees and guarantee limits shall be prescribed by Presidential Decree.
[This Article Wholly Amended on May 24, 2011]
 Article 54-2 (Transfer of Start-up Expenses and Investment Money Resulted from Establishment of Separated Mutual-Aid Association)
(1) Where a mutual-aid association is established separately from an existing mutual-aid association (hereafter in this Article referred to as "separated mutual-aid association"), the promoters may cover expenses required for the establishment of the separated mutual-aid association by borrowing it from the existing mutual-aid association with approval from the Minister of Land, Infrastructure and Transport and the existing mutual-aid association which has received an application for loan may lend it notwithstanding the provisions of its articles of association concerning the operation of the funds.
(2) Where the Minister of Land, Infrastructure and Transport authorizes the establishment of a separated mutual-aid association under Article 55 (2) and the existing mutual-aid association consents to the transfer of investment money, the investment money paid to the existing mutual-aid association by the persons who have filed an application to join the membership of the relevant separated mutual-aid association, shall be construed as the investment money of the separated mutual-aid association that has been newly established. In such cases, matters necessary for the calculation standards, methods of the transfer, etc. shall be determined by the Minister of Land, Infrastructure and Transport.
(3) The existing mutual-aid association shall reduce its capital simultaneously with the transfer of the investment money conducted under paragraph (2). In such cases, the existing mutual-aid association needs not to take any separate procedures for capital reduction.
(4) When a separated mutual-aid association receives the investment money of those who will become the members of the relevant separated mutual-aid association from the existing mutual-aid association, it shall issue and deliver investment certificates without delay, as prescribed by the Minister of Land, Infrastructure and Transport.
(5) Rights and obligations held by an existing mutual-aid association in relationship with persons who become members of the separated mutual-aid association shall be succeeded by the relevant separated mutual-aid association from the commencement date of the business of the separated mutual-aid association.
[This Article Newly Inserted on Feb. 3, 2016]
 Article 55 (Procedures for Granting Authorization for Establishment of Mutual-Aid Associations)
(1) To establish a mutual-aid association, it shall be promoted by at least 200 constructors qualified as members, obtain consent of at least the number of constructors prescribed by Presidential Decree from constructors qualified as members, formulate the articles of association and file an application for authorization with the Minister of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013; Apr. 30, 2019>
(2) When the Minister of Land, Infrastructure and Transport grants authorization of an application filed under paragraph (1), he or she shall announce it publicly. <Amended on Mar. 23, 2013>
(3) Necessary affairs until a mutual-aid association is duly formed and its executive officers are appointed shall be performed by promoters.
[This Article Wholly Amended on May 24, 2011]
 Article 55-2 (Steering Committee)
(1) A mutual-aid association shall have a steering committee to deliberate on and decide matters regarding the projects under Article 56, and to supervise the performance of its duties.
(2) The steering committee shall consist of not more than 30 members. <Amended on Aug. 11, 2015>
(3) None of the following persons shall become a member of the steering committee: <Newly Inserted on May 14, 2014>
1. A person declared bankrupt and not yet reinstated;
2. Persons under adult guardianship or persons under limited guardianship;
3. A person in whose case five years have not passed since his or her imprisonment without labor or heavier punishment as declared by a court was completely executed (including cases where the execution is deemed completed) or exempted;
4. A person who is under suspension of the execution of his or her imprisonment without labor or greater punishment declared by a court.
5. A person in whose case five years have not passed since he or she was subjected to a suspension of construction business or a disposition restricting his or her eligibility to participate in tenders as a corrupt contractor because he or she violated this Act, the Act on Contracts to Which the State Is a Party, or other statutes or regulations and the period of such disposition was completed.
(4) Other matters necessary for the organization, function, and operation of the steering committee shall be prescribed by Presidential Decree. <Amended on May 14, 2014>
[This Article Wholly Amended on May 24, 2011]
 Article 56 (Projects of Mutual-Aid Associations)
(1) The mutual aid association shall perform the following business affairs:
1. Tender guarantees, contract guarantees (including performance bonds), damage guarantees, defect liability guarantees, advance payment guarantees, subcontract guarantees necessary for members to run construction businesses and other guarantees prescribed by Presidential Decree;
2. Loans of funds necessary for members to run construction businesses;
3. Discount of bills which members receive as the construction price;
4. Good offices for purchasing machinery and materials for construction works for members;
5. Welfare promotion and mutual-aid projects compensating for losses caused by accidents on duty for employees of members and mutual-aid projects compensating for losses incurred from construction works that are required for members' businesses;
6. Projects on research and education related to the improvement and enhancement of construction management and construction technologies;
7. Contributions to construction-related corporations;
8. Establishment and operation of joint-use facilities by members and other projects for the promotion of members' benefits;
9. Provision of data-processing and computer operation-related services for members;
10. Investment in related projects necessary for the attainment of the mutual-aid association's purposes;
11. Projects entrusted by the State, local governments or public organizations determined by its articles of incorporation;
12. Projects incidental to projects referred to in subparagraphs 1 through 11 and determined by the articles of association.
(2) A mutual-aid association may perform the following projects: <Amended on May 14, 2014>
1. Provision of guarantees and loans to corporations, etc. in which members make an investment to perform private investment projects, etc. under the Act on Public-Private Partnerships in Infrastructure;
2. Profit-making projects prescribed by Presidential Decree, such as investment in and the provision of loans to real estate investment companies under the Real Estate Investment Company Act or installation and management of sports facilities under the Installation and Utilization of Sports Facilities Act.
(3) Mutual-aid associations may perform joint projects, such as information exchanges for mutual cooperation and promotion of understanding between respective mutual-aid associations or with mutual-aid associations under other statutes.
[This Article Wholly Amended on May 24, 2011]
 Article 57 (Mutual-Aid Provisions)
(1) Where a mutual-aid association intends to perform any mutual-aid project referred to in Article 56 (1) 5, it shall stipulate mutual-aid provisions.
(2) The mutual-aid provisions under paragraph (1) shall contain matters necessary for the operation of mutual-aid projects, such as the scope of mutual-aid projects, terms and conditions of mutual-aid contracts, mutual-aid fees, mutual-aid money, and liability reserves for appropriating mutual-aid money.
[This Article Wholly Amended on May 24, 2011]
 Article 57-2 (Guarantee Provisions)
(1) Where a mutual-aid association intends to perform any guarantee project referred to in Article 56 (1) 1, it shall stipulate guarantee provisions.
(2) The guarantee provisions referred to in paragraph (1) shall contain matters necessary for the operation of guarantee projects, such as the scope of guarantee projects, the terms and conditions of guarantee contracts, guarantee fees and liability reserves for appropriating guarantees.
[This Article Newly Inserted on May 24, 2011]
 Article 58 (Exclusion of Application of the Insurance Business Act)
The Insurance Business Act shall not apply to mutual-aid projects under Article 56 (1) 5 among projects of a mutual-aid association.
[This Article Wholly Amended on May 24, 2011]
 Article 59 (Transfer of Shares)
(1) Any current or former member may transfer his or her shares to other members or any person who intends to be members, as prescribed by Presidential Decree.
(2) Any person who obtains a stake by transfer pursuant to paragraph (1) shall succeed to rights and duties of a transferor on such stake.
(3) The transfer or pledge of shares shall be made by means of transfer of shares or establishment of a pledge under the Commercial Act. <Amended on May 20, 2014>
(4) The attachment or provisional attachment of shares under the civil execution procedure or procedures for issuing dispositions on delinquent national taxes, etc. shall be effected by means of attachment or provisional attachment of debts payable to order under Article 233 of the Civil Execution Act.
[This Article Wholly Amended on May 24, 2011]
 Article 60 (Acquisition of Equity by Mutual Aid Associations)
(1) Where any of the following grounds arises, a mutual-aid association may acquire shares of any current or former members: Provided, That if subparagraph 1 applies, it shall acquire the shares:
1. Where it intends to decrease contributions;
2. When it is necessary to exercise a security right on any member;
3. Where any person who has contributed to the mutual-aid association requests the mutual-aid association to acquire his or her shares to recover his or her contributions;
4. Where two years have passed since any member withdrew;
5. Where any fractional account occurs at the time reserve funds are transferred into contributions.
(2) Where a mutual-aid association acquires shares pursuant to paragraph (1) 1, it shall without delay proceed with reduction procedures of contributions and where it falls under subparagraphs 2 through 5 of the same paragraph, it shall dispose of said shares without delay, but for shares not been disposed of, the contribution therefor may be deducted, as stipulated by the articles of association.
(3) No shares of members shall be the object of a pledge unless they are furnished as security for the obligation to a mutual-aid association.
(4) Where a mutual-aid association acquires shares pursuant to paragraph (1), it shall without delay pay the money paid to the relevant current or former members.
(5) Where a mutual-aid association acquires shares pursuant to paragraph (1), the claim for liquidation money which current or former members have shall be extinguished by prescription unless it is exercised for five years from the date of acquisition of the shares.
[This Article Wholly Amended on May 24, 2011]
 Article 61 (Guarantees by Credit)
A mutual-aid association may provide a guarantee or loans to its members after appraising the asset status of the members and conducting an actual investigation on their capacity to perform the relevant works, as stipulated by the articles of association.
[This Article Wholly Amended on May 24, 2011]
 Article 62 (Appointment of Agents)
A mutual-aid association may appoint an agent authorized to do all judicial or extra-judicial acts with respect to the affairs of the relevant mutual-aid association from among its executive officers or employees.
[This Article Wholly Amended on May 24, 2011]
 Article 63 (Accumulation of Liability Reserve)
(1) A mutual-aid association may appropriate liability reserves and contingency reserves according to the types of guarantees at every closing of the settlement of accounts.
(2) Matters necessary for appropriation of liability reserves and contingency reserves referred to in paragraph (1) shall be prescribed by Presidential Decree.
[This Article Wholly Amended on May 24, 2011]
 Article 64 (Investigations of Situations of Execution)
(1) A mutual-aid association may enter a construction site for which it provides a guarantee to investigate the status of execution of construction and may state its opinion to a member who performs the relevant works, as prescribed by Presidential Decree.
(2) A mutual-aid association may authorize any Association or construction-related specialized institutions to conduct investigations of the situations of execution referred to in paragraph (1) on its behalf.
[This Article Wholly Amended on May 24, 2011]
 Article 65 (Investigations and Inspections)
(1) The Minister of Land, Infrastructure and Transport may require any public official under his or her jurisdiction to investigate the affairs or accounting works of a mutual-aid association or inspect its accounting books or other documents if deemed necessary for maintaining the financial soundness of such mutual-aid association. <Amended on Mar. 23, 2013>
(2) The Financial Services Commission may conduct an investigation and inspection under paragraph (1) with respect to the mutual-aid projects provided for in Article 56 (1) 5, as prescribed by Presidential Decree.
(3) Deleted. <Feb. 3, 2016>
(4) Any public official, etc. who conducts an investigation or inspection under paragraphs (1) and (2) shall carry a certificate indicating his or her authority and produce it to related persons.
[This Article Wholly Amended on May 24, 2011]
 Article 65-2 (Maintenance of Financial Soundness of Construction Guarantee Institutions, such as Mutual-Aid Associations)
(1) The Minister of Land, Infrastructure and Transport shall provide guidance on the maintenance, etc. of the financial soundness for the sound development of projects of mutual-aid associations and the protection of contractors pursuant to Article 56. <Amended on Mar. 23, 2013; Feb. 3, 2016>
(2) The Minister of Land, Infrastructure and Transport shall establish standards necessary for supervising mutual-aid associations in order to provide guidance on the maintenance, etc. of financial soundness under paragraph (1) and publicly notify the standards: Provided, That in establishing the standards necessary for supervising mutual-aid associations, he or she shall publicly notify such standards after consultation with the Chairperson of the Financial Services Commission. <Amended on Mar. 23, 2013; Feb. 3, 2016>
(3) Where the Minister of Land, Infrastructure and Transport deems that the financial status of a mutual-aid association falls short of the standards referred to in paragraph (4), such as the cases where any of the equity capital ratio, liquidity ratio, solvency margin ratio, etc. falls short of a fixed level or that the financial status of a mutual-aid association obviously falls short of the standards referred to in paragraph (4) due to the occurrence of a large financial incident or insolvent obligations, he or she may, in order to prevent the insolvency of the mutual-aid association and to induce its sound management, recommend, demand, or order the relevant mutual-aid association or the executive officers thereof to perform the following measures or order to submit an implementation plan therefor: <Newly Inserted on Feb. 3, 2016>
1. Increase or reduction of the capital, disposal of assets held or reduction of business outlets and organization;
2. Suspension of the performance of an executive officer's duties or appointment of an administrator who performs the duties of an executive officer on his or her behalf;
6. Suspension of all or part of business;
4. Limitation of dividend;
5. Additional appropriation for bad debts and reserve for payment by subrogation;
6. Adjustment of guarantee fees and interest rates of loans;
7. Transfer of contracts related to the transfer of business, guarantee business, mutual-aid business, etc.;
8. Other matters corresponding to the provisions referred to in subparagraphs 1 through 7, which are deemed necessary for the enhancement of financial soundness of the mutual-aid association.
(4) In order to take measures under paragraph (3), the Minister of Land, Infrastructure and Transport shall determine and publicly announce the standards and details thereof in advance. <Newly Inserted on Feb. 3, 2016>
(5) Where a mutual-aid association which temporarily falls short of the standards referred to in paragraph (4) is deemed to be able to meet the standards in a short period or where any ground corresponding thereto is deemed to exist, the Minister of Land, Infrastructure and Transport may postpone the measures referred to in paragraph (3) for a fixed period. <Newly Inserted on Feb. 3, 2016>
[This Article Newly Inserted on May 24, 2011]
 Article 66 (Restrictions on Collection of Security Deposits)
Where a mutual-aid association guarantees the performance of duties of a member, a guarantee creditor shall substitute a written guarantee for a security deposit or a work performance guarantee, and shall not collect a security deposit or any other nominal amount otherwise from the member, notwithstanding any stipulation under related statutes and regulations and written contracts, etc.
[This Article Wholly Amended on May 24, 2011]
 Article 67 (Responsibilities of Mutual-Aid Associations)
(1) A mutual-aid association shall protect the rights and interests of guarantee creditors and guarantee obligors, and where it intends to enact or change guarantee provisions and guarantee stipulations under Article 57-2, it shall report to the Minister of Land, Infrastructure and Transport. <Newly Inserted on May 14, 2014>
(2) Where guarantee provisions and guarantee stipulations reported to the Minister of Land, Infrastructure and Transport pursuant to paragraph (1) include terms disadvantageous to a guarantee creditor or guarantee obligor or it is necessary in order to maintain the sound guarantee trade order, he or she may order a mutual-aid association to correct the relevant provisions. <Newly Inserted on May 14, 2014>
(3) A mutual-aid association shall pay a guarantee creditor a guarantee deposit, where there arises any cause for which it shall pay the security deposit, as prescribed by statutes and regulations or written contracts, etc., with respect to matters it has guaranteed. <Amended on May 14, 2014>
(4) The right to a security deposit a guarantee creditor has with a mutual-aid association under paragraph (3) shall be extinguished by prescription unless it is exercised for two years after expiration of the guarantee period. <Amended on May 14, 2014>
[This Article Wholly Amended on May 24, 2011]
 Article 62 (Mutatis Mutandis Application of Other Statutes)
Except as provided in this Act, the provisions on incorporated associations under the Civil Act and the provisions on the account of stock companies under the Commercial Act shall apply mutatis mutandis to a mutual-aid association, respectively.
[This Article Wholly Amended on May 24, 2011]
 Article 68-2 Deleted. <Feb. 3, 2016>
 Article 68-3 (Guaranteeing Rental Payments of Leases for Construction Machinery)
(1) A contractor or subcontractor shall submit a written guarantee for the payment of the rental for construction machinery to be rented for each site of construction works performed by him or her (hereinafter referred to as "written guarantee for each site") to the project owner on or before the date of commencement of the construction works, and the construction machinery lessor shall submit the contract for the lease of construction machinery to the guarantor that issued the written guarantee for each site, when he or she concludes the contract for the lease of construction machinery: Provided, That a contractor or subcontractor may deliver a written guarantee for rental payments to a construction machinery lessor for each contract for the lease of construction machinery, in lieu of a written guarantee to be submitted for each site to the project owner, in cases of small construction works or for other good cause prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Dec. 18, 2018>
(2) Notwithstanding paragraph (1), a written guarantee for rental payments of leases for construction machinery need not be issued in any of the cases prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, such as where the project owner, the constructor and the construction machinery lessor agree that the project owner shall pay the rental for construction machinery directly to the construction machinery lessor. <Newly Inserted on Dec. 18, 2018; Apr. 30, 2019; Jul. 27, 2021>
(3) The parties to a contract for construction works (including a subcontract) shall specify, in detail, the cost for issuing a written guarantee for rental payments of leases for construction machinery referred to in paragraph (1) in the statement of the contract price calculation (including the statement of subcontract price calculation) for the relevant construction works, as prescribed by Presidential Decree.
(4) Where a mutual aid association established under Article 54 or any agency authorized to perform guarantee affairs under other statutes and regulations has issued a written guarantee for rental payments of leases for construction machinery (including the issuance of a modified guarantee) referred to in paragraph (1), or terminates a guarantee agreement, it shall promptly notify the project owner, the contractor (limited to a guarantee agreement reached under a contract between a subcontractor and a construction machinery lessor), and the construction machinery lessor of details thereof, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013; Jun. 9, 2020>
(5) The amount of guarantee of a written guarantee for rental payments of leases for construction machinery referred to in paragraph (1), matters to be performed by the guarantee-related parties, etc., and other specific matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>
(6) Where a project owner is the State, a local government, a public institution prescribed by Presidential Decree, the project owner shall ascertain whether a constructor has submitted or delivered a written guarantee under paragraph (1) to secure the rental of construction machinery. <Amended on Dec. 18, 2018; Apr. 30, 2019>
[This Article Newly Inserted on Dec. 18, 2012]
 Article 68-4 (Review of Reasonableness of Rental Contracts for Tower Cranes)
(1) When a constructor concludes a rental contract for the construction machinery defined in Article 2 (1) 1 of the Construction Machinery Management Act with a construction machinery lessor, the constructor shall notify the project owner thereof, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Apr. 30, 2019>
(2) If the rental contract amount for a tower crane falls short of the amount computed by the ratio prescribed by Presidential Decree, the project owner shall review the reasonableness, etc. of the rental contract for the tower crane.
(3) If the project owner finds as a result of the review under paragraph (2) that terms and conditions of the rental contract for a tower crane is not reasonable, the project owner shall request the constructor to replace the tower crane lessor or amend the terms and conditions of the rental contract, and the constructor so requested shall comply therewith, except when there is good cause not to do so. <Amended on Apr. 30, 2019>
(4) If a constructor's failure to comply with a request made under paragraph (3), without good cause, is likely to have a material impact on safety control, the project owner may terminate the contract for relevant construction works. <Amended on Apr. 30, 2019>
(5) The criteria for the review of reasonableness of rental contracts for tower cranes under paragraph (2) and the procedures for requesting the replacement of a tower crane lessor or the amendment of terms and conditions of a rental contract under paragraph (3) and other necessary matters shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Dec. 18, 2018]
CHAPTER VIII CONSTRUCTION DISPUTE MEDIATION COMMITTEE
 Article 69 (Establishment of Construction Dispute Mediation Committee)
(1) The Construction Dispute Mediation Committee (hereinafter referred to as the "Committee") shall be established under the jurisdiction of the Minister of Land, Infrastructure and Transport to mediate disputes on construction business and construction service business. <Amended on Mar. 23, 2013; Aug. 6, 2013>
(2) Deleted. <Aug. 6, 2013>
(3) The Committee shall examine and mediate the following disputes at the request of either party or both parties to the dispute: <Amended on Aug. 6, 2013>
1. Disputes on the responsibility between persons involved in construction works, such as design, execution, supervision, etc.;
2. Disputes on construction works between project owners and contractors: Provided, That disputes related to the interpretation of the Act on Contracts to Which the State Is a Party and the Act on Contracts to Which a Local Government Is a Party shall be excluded;
3. Disputes on subcontracts of construction works between contractors and subcontractors: Provided, That matters to which the Fair Transactions in Subcontracting Act applies shall be excluded;
4. Disputes on the responsibility, etc. for execution between contractors and any third party;
5. Dispute on the surety’s liability between parties to a contract for construction works and guarantors;
6. Other disputes on matters prescribed by Presidential Decree.
(4) In order to conduct affairs of the Committee, a secretariat may be established in the Committee, and the secretariat may hire expert advisers in order to assist investigative affairs of members of the Committee. <Newly Inserted on Aug. 6, 2013>
[This Article Wholly Amended on May 24, 2011]
 Article 69-2 Deleted. <Aug. 6, 2013>
 Article 70 (Composition of Committee)
(1) The Committee shall be comprised of not more than 15 members, including one chairperson and one vice-chairperson.
(2) Public officials belonging to any central administrative agency prescribed by Presidential Decree, who are designated by the head of the relevant agency, and persons commissioned by the Minister of Land, Infrastructure and Transport from among any of the following persons shall become members of the Committee: <Amended on Mar. 23, 2013; Aug. 6, 2013>
1. A person who is or was in office as an assistant professor or higher teaching engineering or jurisprudence at a school prescribed by the Higher Education Act;
2. A judge, prosecutor, or lawyer;
3. A person who has abundant knowledge about and experience in construction works, construction business, or construction service business and meets the requirements prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(3) The Minister of Land, Infrastructure and Transport shall appoint the chairperson of the Committee from among its members and the vice chairperson shall be elected by the Committee from among its members. <Amended on Aug. 6, 2013>
(4) The term of office for the members who are not public officials shall be three years, and may be renewed.
(5) The term of office for a member appointed or commissioned to fill a vacancy shall be the remaining term of office of his or her predecessor.
[This Article Wholly Amended on May 24, 2011]
 Article 70-2 (Disqualifications for Members of Committee)
None of the following persons shall become a member of the Committee:
1. A person declared bankrupt and not yet reinstated;
2. Persons under adult guardianship or persons under limited guardianship;
3. A person disqualified by a court decision or pursuant to statutes;
4. A person in whose case three years have not passed since his or her imprisonment without labor or heavier punishment as declared by a court was completely executed (including cases where the execution is deemed completed) or exempted;
5. A person who is under suspension of the execution of his or her imprisonment without labor or a heavier punishment declared by a court.
[This Article Newly Inserted on May 14, 2014]
 Article 71 (Meetings of Committee)
(1) A meeting of the Committee shall be convened by the chairperson.
(2) Meetings of the Committee shall be held with a majority of all incumbent members present and resolutions shall be passed with the affirmative vote of a majority of the members present.
[This Article Wholly Amended on May 24, 2011]
 Article 72 (Notification of Request for Mediation)
Where the Committee receives a request for mediation from either party to a dispute, it shall notify the other party to the dispute of the details of such request, and the other party to the dispute shall attend the meetings for the dispute mediation.
[Title Amended on Aug. 6, 2013]
 Article 73 (Refusal or Suspension of Mediation)
(1) Where the Committee deems that it is inappropriate to mediate a dispute given the nature of the dispute or that a request for mediation is filed for an improper purpose, the Committee may refuse mediation. In such cases, it shall notify the claimant of the ground, etc. for refusal of mediation.
(2) Deleted. <Aug. 6, 2013>
(3) Where one of the parties to a dispute files a legal action, the Committee shall suspend the mediation proceedings and notify the parties of the fact that the mediation has been suspended due to the filing of the legal action.
[This Article Wholly Amended on May 24, 2011]
 Article 74 (Processing Period)
(1) A Committee shall examine a request for mediation and prepare a mediation proposal within 60 days after receipt of the request for mediation: Provided, That it may extend the period by up to 60 days through resolution by the Committee if good cause exists. <Amended on Jan. 17, 2017>
(2) Where a Committee extends the period pursuant to the proviso of paragraph (1), it shall notify the parties of the reason for extension of the period or other matters regarding the extension of the period.
[This Article Wholly Amended on May 24, 2011]
 Article 75 (Investigations and Hearing of Opinions)
(1) Where the Committee deems it necessary, it may require members or expert advisers of the Committee, or public officials belonging to the Ministry of Land, Infrastructure and Transport to inspect relevant documents or enter a related place of business to conduct an investigation. <Amended on Mar. 23, 2013; Aug. 6, 2013>
(2) The Committee may require parties to the mediation or parties interested in the dispute to attend its meetings to speak at the meetings, and hear opinions of related experts, where necessary. <Amended on Aug. 6, 2013>
[This Article Wholly Amended on May 24, 2011]
 Article 76 (Mediation Division)
(1) Where it is deemed necessary to efficiently perform mediation affairs, Committees may establish a mediation division comprised of not more than five members by each field of mediation cases.
(2) Members of a mediation division referred to in paragraph (1) shall be designated by the chairperson.
(3) Mediation divisions shall examine in advance a mediation case, prepare a mediation proposal, and present it to a meeting of the Committee.
[This Article Wholly Amended on May 24, 2011]
 Article 77 (Recommendations for Agreements)
Where the Committee receives a request for mediation, it may recommend the parties to a dispute to reach an agreement on dispute resolution.
[Title Amended on Aug. 6, 2013]
 Article 78 (Effects of Mediation)
(1) Upon preparing a mediation proposal, the Committee shall present it without delay to the relevant parties.
(2) Upon receipt of a mediation proposal under paragraph (1), the parties shall notify the Committee of whether it accepts such mediation proposal within 15 days after receipt of the mediation proposal.
(3) Where the parties to a dispute agree on dispute resolution pursuant to Article 77 or accept a mediation proposal under paragraph (1), the Committee shall prepare a mediation protocol, and the chairperson and each party shall sign or affix their names and seals thereto. <Amended on Aug. 6, 2013>
(4) The details of a mediation protocol under paragraph (3) shall have the same effect as a judicial compromise. <Amended on Aug. 6, 2013>
[This Article Wholly Amended on May 24, 2011]
[Title Amended on Aug. 6, 2013]
 Article 78-2 (Interruption of Prescription)
(1) A request for mediation under Article 69 (3) shall have the effect of the interruption of prescription: Provided, That the foregoing shall not apply where such request is withdrawn, or mediation is refused or suspended.
(2) Prescription interrupted pursuant to the main clause of paragraph (1) shall newly proceed where a party to a dispute falls under any of the following:
1. Where a mediation protocol is prepared pursuant to Article 78 (3), and the chairperson of the Committee and each party to the dispute affix their signatures or signatures and seals thereto;
2. Where either party or both parties to the dispute expresses (express) his or her (their) intention that he or she (they) does (do) not agree to any decision on mediation.
[This Article Newly Inserted on Aug. 13, 2013]
 Article 78-3 (Non-disclosure of Mediation Proceedings)
Mediation proceedings conducted by the Committee shall not be disclosed: Provided, That where the majority of the members of the Committee give consent, the Committee may disclose such proceedings.
[This Article Newly Inserted on Aug. 13, 2013]
 Article 79 (Cost Sharing)
(1) Costs incurred in relation to appraisal, diagnosis, test, etc. for dispute mediation shall be borne by the claimant: Provided, That where an agreement thereon is made between the parties, they shall be governed by the agreement.
(2) Where it is deemed necessary, the Committee may have parties pay costs referred to in paragraph (1) in advance, as prescribed by Presidential Decree.
(3) The scope of expenses referred to in paragraph (1) shall be prescribed by Presidential Decree.
[This Article Wholly Amended on May 24, 2011]
 Article 79-2 (Service of Documents)
Articles 174 through 197 of the Civil Procedure Act shall apply mutatis mutandis to the service of documents related to dispute mediation.
[This Article Wholly Amended on May 24, 2011]
 Article 80 (Operation of Committee)
Except as provided in Articles 69 through 79 and 79-2, the composition, organization and operation of the Committee and mediation process and other necessary matters shall be prescribed by Presidential Decree. <Amended on Aug. 6, 2013>
[This Article Wholly Amended on May 24, 2011]
CHAPTER IX CORRECTIVE ORDERS
 Article 81 (Corrective Orders)
Where any constructor falls under any of the following cases, the Minister of Land, Infrastructure and Transport may order the constructor to make corrections within a specified period, or give other necessary instructions: <Amended on Dec. 18, 2012; Mar. 23, 2013; Aug. 6, 2013; Aug. 11, 2015; Feb. 3, 2016; Dec. 26, 2017; Aug. 14, 2018; Dec. 18, 2018; Apr. 30, 2019>
1. Where he or she fails to perform contracted construction works without good cause;
2. Deleted; <Feb. 3, 2016>
3. Where he or she fails to notify the project owner of the entries in the construction work ledger in violation of Article 22 (6);
4. Where he or she violates the duties of constructors referred to in Article 22 (7), 34, 34-2 (2), 36 (1), 36-2 (1), 37, 38 (1), or 68-3 (1);
5. Where he or she fails to remedy defects in relation to defects liability as prescribed in Article 28;
5-2. Where he or she fails to comply with a request to replace a subcontract or to amend terms and conditions of a subcontract, in violation of the latter part of Article 31 (3);
6. Where he or she coerces a person to enter into an agreement that includes any unfair special agreements, in violation of Article 38 (2);
7. Where he or she fails to assign a construction engineer to a construction site in violation of Article 40 or an assigned construction engineer is deemed inappropriate for execution management of the relevant construction works;
8. Where he or she fails to display a sign under Article 42 (1) or install a signboard under Article 42 (2);
9. Where he or she fails to file a report under Article 49 (1) without good cause;
10. Where he or she is likely to cause a faulty execution of construction works due to his or her failure to comply with design documents, specifications, terms and conditions of the contract, etc. or his or her failure to conscientiously perform the relevant construction works;
11. Where he or she fails to comply with a request to replace a subcontractor, in violation of Article 29-3 (6);
12. Where he or she fails to comply with a request to replace a tower crane lessor or to amend terms and conditions of a rental contract, in violation of Article 68-4 (3).
[This Article Wholly Amended on May 24, 2011]
 Article 82 (Suspension of Business)
(1) Where any constructor falls under any of the following cases, the Minister of Land, Infrastructure and Transport may order the constructor to suspend his or her business for a set period of up to six months or impose a penalty surcharge not exceeding 100 million won on him or her in lieu of suspension of business: <Amended on Jun. 1, 2012; Dec. 18, 2012; Mar. 23, 2013; May 22, 2013; Aug. 6, 2013; Feb. 3, 2016; Aug. 14, 2018; Dec. 18, 2018; Dec. 31, 2018; Apr. 30, 2019>
1. Where defects equal to or greater than the scale determined by Ordinance of the Ministry of Land, Infrastructure and Transport occur at least on three occasions due to causes attributable to a contractor or subcontractor during the defects liability period referred to in Article 28. In such cases, the contractor shall be deemed to have the same responsibility for any cause attributable to his or her subcontractor;
2. When he or she borrows or lends a national technical qualification certificate or a career certificate of construction technology from/to any third person in violation of Article 21-2;
3. When he or she submits false performance records of construction works and the status of affiliated engineers, etc. under Article 23 (3);
4. Where he or she makes a misrepresentation in giving the notice under Article 29 (6);
5. Where he or she fails to comply with a corrective order or corrective instruction referred to in Article 81 (excluding subparagraphs 3, 4, 6, 8, 11 and 12) without good cause;
6. Where he or she falls under any of the following:
(a) Where he or she fails to comply with a corrective order referred to in Article 54 (1) of the Construction Technology Promotion Act;
(b) Where he or she violates the duty to prepare shop drawings referred to in Article 48 (4) of the Construction Technology Promotion Act or performs works without examination and confirmation by a construction engineer who conducts construction management or construction supervisor;
(c) Where he or she fails to conscientiously conduct a quality test or inspection referred to in Article 55 of the Construction Technology Promotion Act;
(d) Where he or she fails to conscientiously conduct a safety checkup referred to in Article 62 (2) of the Construction Technology Promotion Act;
(e) Where he or she fails to comply with a corrective order referred to in Article 80 of the Construction Technology Promotion Act;
7. Where a constructor who causes a serious accident referred to in the Occupational Safety and Health Act is requested to suspend his or her business by the Minister of Employment and Labor or by a State or local government agency under other statutes or regulations;
8. Where he or she violates the duties of constructors referred to in Article 22 (7), 34, 36 (1), 37, 38 (1), or 68-3 (1);
9. Where he or she coerces a person to enter into an agreement that includes any unfair special agreements, in violation of Article 38 (2);
10. Where his or her penalty points under Article 25 (5) exceed the threshold prescribed by Presidential Decree;
11. Where he or she makes a misrepresentation in giving notice under Article 68-4 (1).
(2) Where any constructor (in cases under subparagraph 5, referring to a constructor and a contractor if a subcontract is made, and a constructor and a person who further subcontracts with a third party if a further subcontract is made) falls under any of the following cases, the Minister of Land, Infrastructure and Transport may order the constructor to suspend his or her business for a set period of up to one year or impose a penalty surcharge not exceeding the amount (five hundred million won in cases falling under subparagraph 5) equivalent to up to 30/100 of the contract price (referring to the subcontract price in cases under subparagraph 3, 6 or 7) of the works constituting the relevant violation in lieu of the suspension of business: <Amended on Jun. 1, 2012; Mar. 23, 2013; Dec. 18, 2018; Dec. 31, 2018; Apr. 30, 2019>
1. Where he or she is awarded a contract or subcontract for construction works, in violation of Article 16;
2. Where he or she fails to directly perform construction works, in violation of Article 28-2 (1);
3. Where he or she violates restrictions on subcontracts referred to in Articles 25 (2) and 29 (1) through (5);
4. Where he or she is awarded a contract for construction works which falls short of the lower limits of the construction price referred to in Article 47 (2);
5. Where he or she unconscientiously performs construction works by intention or negligence;
6. Where he or she fails to fulfill his or her obligation to manage subcontractors under Article 29-2 (1) (applicable only where a subcontractor became subject to the suspension of business or other disposition issued under subparagraph 3 and it is found that the constructor instructed the subcontractor to commit the violation or conspired the violation with the subcontractor);
7. Where a contractor subcontracts construction works to a construction against whom restrictions on participation in subcontracts are effective or a constructor accepts any subcontract during the period in which the constructor is subject to restrictions on participation in subcontracts, in violation of Article 29-3 (5).
(3) Where any person on whom a penalty surcharge is imposed pursuant to paragraph (1) or (2) fails to pay the penalty surcharge by the due date, it shall be collected in the same manner as delinquent national or local taxes are collected.
[This Article Wholly Amended on May 24, 2011]
 Article 82-2 (Suspension of Business for Acquisition or Provision of Economic Benefits through Improper Solicitations)
(1) Where any constructor acquires or provides property or proprietary interest through improper solicitation in violation of Article 38-2, the Minister of Land, Infrastructure and Transport may order him or her to suspend his or her business for a set period of up to one year, or impose a penalty surcharge not exceeding one billion won on him or her in lieu of the suspension of business, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Apr. 30, 2019>
(2) Where any constructor repeats violations within three years from the date he or she is subject to the suspension of business or a penalty surcharge referred to in paragraph (1), the Minister of Land, Infrastructure and Transport may order his or her to suspend his or her business for a set period of up to two years, as prescribed by Presidential Decree: Provided, That where he or she deems that ordering suspension of business may incur an irrecoverable loss, he or she may impose a penalty surcharge not exceeding two billion won in lieu of the suspension of business, as prescribed by Presidential Decree. <Amended on Apr. 30, 2019>
(3) Where any constructor repeats violations on at least two occasions within three years from the date he or she is subject to the suspension of business or a penalty surcharge referred to in paragraph (1), the Minister of Land, Infrastructure and Transport shall cancel his or her registration of construction business. <Amended on Apr. 30, 2019>
(4) No disposition referred to in paragraphs (1) through (3) shall be issued where the relevant corporation or individual has not been negligent in giving proper attention and supervision to the relevant duties to prevent such violation.
(5) Where a person on whom a penalty surcharge is imposed under paragraph (1) or (2) fails to pay the penalty surcharge by the due date, it shall be collected in the same manner as delinquent national or local taxes are collected.
[This Article Newly Inserted on May 24, 2011]
 Article 83 (Cancellation of Registration of Construction Business)
Where any constructor (in cases falling under subparagraph 10, referring to a constructor and a contractor if a subcontract is made, and a constructor and a person who further subcontracts with a third party if a further subcontract is made) falls under any of the following cases, the Minister of Land, Infrastructure and Transport may cancel the registration of the constructor's construction business or order the constructor to suspend his or her business for a set period of up to one year: Provided, That where he or she falls under subparagraph 1, 2-2, 3-2, 3-3, 4 through 8, 8-2, 12, or 13, the Minister of Land, Infrastructure and Transport shall cancel the registration of the constructor's construction business: <Amended on Jun. 1, 2012; Mar. 23, 2013; May 14, 2014; Feb. 3, 2016; Mar. 21, 2017; Dec. 18, 2018; Dec. 31, 2018; Apr. 30, 2019; Jun. 9, 2020; Dec. 22, 2020; Dec. 29, 2020>
1. Where he or she obtains registration of construction business referred to in Article 9 by improper means;
2. Deleted; <Feb. 3, 2016>
2-2. Where he or she fails to commence his or her business within one year after he or she obtains registration of construction business under Article 9 or he or she files a report with the director of the competent tax office regarding temporary closure of his or her business for at least one consecutive year under Article 8 (8) of the Value-Added Tax Act, and he or she has fallen short of the standards for registration of construction business referred to in Article 10;
3. Where he or she falls short of the standards for registration of construction business referred to in Article 10: Provided, That the same shall not apply to the cases prescribed by Presidential decree, such as temporarily falling short of the standards for registration;
3-2. Where he or she is subject to the suspension of business for falling short of the standards for registration of construction business referred to in Article 10 but fails to rectify the relevant matters by the end date of the suspension of business;
3-3. Where he or she is subject to the suspension of business for falling short of the standards for registration of construction business referred to in Article 10, and falls short of the same standard within three years;
4. Where he or she becomes disqualified for registration of construction business as prescribed in any subparagraph of Article 13 (1): Provided, That where any executive of a corporation registered for a construction business becomes disqualified for registration of construction business, the same shall not apply if the relevant executive is replaced within three months from the date such fact is found;
5. Where he or she allows any third person to use his or her name or trade name to contract for or perform construction works, or assists in doing such act, or he or she lends his or her construction business registration certificate or construction business registration pocketbook, or assists in doing such act in violation of Article 21;
6. Where he or she meets the standards for registration of construction business by borrowing a national technical qualification certificate or a career certificate of construction technology from any third party, or he or she falls short of the standards for registration of construction business as a result of lending his or her national technical qualification certificate or career certificate of construction technology to any third party in violation of Article 21-2;
7. Where he or she violates any provision of Article 29 (1) through (3) twice or more again within five years after a disposition to suspend business was issued against him or her or a penalty surcharge was imposed upon him or her for an identical violation under Article 82 (2) 3;
8. Where he or she violates a disposition of suspension of business taken under Article 82 or 82-2, or this Article;
8-2. Where he or she fails to file a report referred to in Article 49 (1) (limited to where a constructor is required to file such report to determine whether he or she meets the standards for registration of construction business) by the end date of a disposition of suspension of business taken under Article 82 (1) 5 for his or her violation of subparagraph 9 of Article 81;
9. Where he or she fails to commence the business within one year he or she obtains registration of construction business or he or she suspends the business for at least one consecutive year;
10. Where he or she unconscientiously performs construction works by intention or negligence, thereby causing serious damage to the major structural parts of a facility and a danger to the public;
11. Where a State or local government agency requests suspension of business or cancellation of registration under other statutes and regulations;
12. Where a constructor makes a report on the closure of his or her business under Article 8 (8) of the Value-Added Tax Act or the head of the competent tax office cancels his or her registration of a business operator pursuant to paragraph (7) of the aforesaid Article;
13. Where he or she is subject to the imposition of a penalty surcharge under Article 43 of the Monopoly Regulation and Fair Trade Act by committing any of the following violations, and is subject to further imposition of a penalty surcharge on at least two occasions within nine years from the date of the first imposition of a penalty surcharge by committing any of the following violations again during the same period:
[This Article Wholly Amended on May 24, 2011]
 Article 83-2 (Requests for Corrective Orders and Reports)
(1) The head of a local government finds that a constructor has violated this Act within his or her jurisdiction, he or she may request the administrative agency with which the constructor’s business has been registered to take measures, such as a corrective order, suspension of business, or cancellation of registration under Articles 81, 82, 82-2 and 83. <Amended on Apr. 30, 2019>
(2) Where the head of a local government has taken measures, such as a corrective order, suspension of business or cancellation of registration, pursuant to Articles 81, 82, 82-2 and 83 (limited to where he or she has been entrusted under Article 91 (1)), he or she shall submit a report on the details of and grounds for dispositions, etc. to the Minister of Land, Infrastructure and Transport, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>
(3) Where the State, a local government, or a public institution prescribed by Presidential Decree finds a violation of Article 38-2, it shall notify the administrative agency with which the relevant constructor’s business has been registered so that the agency may suspend his or her business, impose a penalty surcharge on him or her, or cancel his or her registration pursuant to Article 82-2. <Amended on Apr. 30, 2019>
[This Article Wholly Amended on May 24, 2011]
 Article 83-3 (Confirmation of Business Closure)
In order to confirm the fact of business closure or cancellation of business registration under subparagraph 12 of Article 83 (hereafter in this Article referred to as "business closure, etc."), the Minister of Land, Infrastructure and Transport or the head of a local government (applicable only to cases where necessary to deal with the affairs delegated under Article 91 (1); hereafter in this Article the same shall apply) may request the head of the competent tax office to provide tax information, such as business closure, etc., of the relevant business operator by indicating his or her business registration number. In such cases, the Minister of Land, Infrastructure and Transport and the head of the local government may share administrative information under Article 36 (1) of the Electronic Government Act, if necessary to confirm the fact of business closure, etc.
[This Article Newly Inserted on Feb. 3, 2016]
 Article 84 (Detailed Standards for Dispositions, such as Suspension of Business)
Where a disposition of suspension of business or a disposition for imposition of a penalty surcharge is issued, or the registration of construction business is cancelled or a disposition of suspension of business is issued pursuant to Article 82, 82-2, or 83, standards for cancelling the registration of construction business or for suspension of business, the period of suspension of business, the amount of a penalty surcharge depending on the category and degree of violations, and other necessary matters shall be prescribed by Presidential Decree. In such cases, the period of suspension of business, etc. may be mitigated for persons who have completed the education, under Article 9-2 (3), as prescribed by Presidential Decree. <Amended on Aug. 11, 2015>
[This Article Wholly Amended on May 24, 2011]
 Article 84-2 (Limitation Period)
Where the period referred to in each of the following has expired, the Minister of Land, Infrastructure and Transport shall not order a constructor to suspend his or her business, impose a penalty surcharge on him or her, or cancel his or her registration of construction business pursuant to Article 82, 82-2, or 83: <Amended on Mar. 23, 2013; Jun. 9, 2020>
1. The elapse of 10 years from the end date of the defects liability period for the relevant works in cases of violation of Article 82 (1) 1 or (2) 5, or subparagraph 10 of Article 83;
2. The elapse of five years from the end date of acts of violation in cases of violation of Article 82 (excluding paragraphs (1) 1, 8 and 9, and (2) 5), 82-2 or 83 (excluding subparagraph 10);
3. The elapse of three years from the end date of acts of violation in cases of violation of Article 82 (1) 8 or 9.
[This Article Newly Inserted on Dec. 18, 2012]
 Article 85 (Requests for Sanctions by Interested Persons)
Where a constructor falls under any subparagraph of Article 81, any interested person may request the Minister of Land, Infrastructure and Transport to take appropriate measures against the constructor stating the grounds therefor. <Amended on Mar. 23, 2013; Apr. 30, 2019>
[This Article Wholly Amended on May 24, 2011]
 Article 85-2 (Succession to Position of Constructor)
(1) Where a person whose registration of construction business was canceled following a report on business closure under Article 20-2 has filed for re-registration as a constructor in accordance with Article 9 within six months, and falls under any of the following cases, the relevant constructor shall succeed to the position of the constructor before the report on business closure: <Amended on Jun. 1, 2012; Feb. 3, 2016; Apr. 30, 2019>
1. Where he or she files for re-registration for the same category of construction business as he or she registered at the time of cancellation of registration;
2. In circumstances prescribed by Presidential Decree in which he or she files for registration of a different category of construction business, the work scope of which fully or partially overlaps with the work scope of the business category under which he or she was registered at the time of cancellation of registration.
(2) An administrative disposition issued to the constructor before a report on business closure shall be effective with respect to the person who succeeds to the position of a constructor under paragraph (1). <Amended on Apr. 30, 2019>
(3) The Minister of Land, Infrastructure and Transport may issue the person who succeeds to the position of a constructor before the report on business closure under paragraph (1), a corrective order, business suspension, or the cancellation of registration under Articles 81, 82, 82-2 and 83 on account of any violation committed before the report on business closure. <Amended on Mar. 23, 2013; Apr. 30, 2019>
[This Article Wholly Amended on May 24, 2011]
[Title Amended on Apr. 30, 2019]
 Article 85-3 (Public Announcement of Cancellation of Registration)
(1) Where the Minister of Land, Infrastructure and Transport takes measures, such as a corrective order, business suspension, cancellation of registration or imposition of an administrative fine against constructors as prescribed in Articles 81, 82, 82-2, 83 and 101, he or she shall publicly announce the details thereof and notify the relevant person thereof, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013; Apr. 30, 2019>
(2) The Minister of Land, Infrastructure and Transport may provide the details of public announcement made under paragraph (1) to the financial institutions or credit information agencies prescribed by Presidential Decree. In such cases, the Minister of Land, Infrastructure and Transport shall notify the relevant person of provision of such details. <Amended on Mar. 23, 2013>
[This Article Wholly Amended on May 24, 2011]
 Article 86 (Hearings)
When intending to suspend business, impose a penalty surcharge, or cancel registration pursuant to Article 82, 82-2 or 83, the Minister of Land, Infrastructure and Transport shall hold a hearing: Provided, That he or she shall not hold a hearing where the Minister intends to cancel the registration of a constructor who falls under subparagraph 12 of Article 83 after closing his or her business. <Amended on Mar. 23, 2013; Apr. 30, 2019>
[This Article Wholly Amended on May 24, 2011]
 Article 86-2 (Inspections of Project Owners)
Where the State, a local government, or a public institution prescribed by Presidential Decree is a project owner, the Minister of Land, Infrastructure and Transport may inspect and verify the responsibilities of the project owner referred to in Article 7 (2) to elevate its ordering capacity and the management capacity of construction works. <Amended on Mar. 23, 2013>
[This Article Wholly Amended on May 24, 2011]
 Article 86-3 (Instruction and Supervision over Construction Administration)
The Minister of Land, Infrastructure and Transport may establish or implement an instruction and inspection plan, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, to give instructions or conduct inspections on sound construction administration, including performance of business affairs concerning registration of construction business, etc. or supervision over construction works. <Amended on Mar. 23, 2013>
[This Article Wholly Amended on May 24, 2011]
 Article 86-4 (Publication of Lists of Constructors Who Make Delayed Payments Habitually)
(1) The Minister of Land, Infrastructure and Transport shall publish a list of constructors whose total amount of delayed payments for the subcontract price, the rental for construction machinery and the price of components for construction works is at least 30 million won (hereinafter referred to as "constructors who make delayed payments habitually") from among the constructors who have been subjected to measures (excluding measures with which procedures for dissatisfaction are under way, and where a constructor has been subjected to measures at least twice due to the same violation, the number of times of such measures shall be deemed once) under Article 81 or 82 at least twice, in violation of Article 34 (1) (including cases where it is applied mutatis mutandis in Article 32 (4)) for the last three years from the immediately preceding year: Provided, That the foregoing shall not apply where there are reasons prescribed by Presidential Decree, such as where the publication of a list is ineffective due to the death of a constructor who makes delayed payments habitually or declaration of his or her death in absentia. <Amended on Apr. 30, 2019>
(2) The Deliberative Committee on the Publication of List of Constructors Who Make Delayed Payments Habitually (hereafter in this Article referred to as the "Deliberative Committee") shall be established under the jurisdiction of the Ministry of Land, Infrastructure and Transport in order to deliberate on whether to publish a list of constructors who make delayed payments habitually under paragraph (1). <Amended on Apr. 30, 2019>
(3) The Minister of Land, Infrastructure and Transport shall notify constructors subject to publication after deliberations by the Deliberative Committee of the fact that they are subject to the publication of a list, and give them an opportunity to make explanations within a fixed period of at least three months. <Amended on Apr. 30, 2019>
(4) In evaluating the execution capacity under Article 23, the Minister of Land, Infrastructure and Transport may reflect the record of delayed payments of constructors who make delayed payments habitually, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Apr. 30, 2019>
(5) Methods of the publication of a list of constructors who make delayed payments habitually and matters necessary for the organization and operation of the Deliberative Committee under paragraphs (1) and (2) shall be prescribed by Presidential Decree. <Amended on Apr. 30, 2019>
[This Article Newly Inserted on May 14, 2014]
[Title Amended on Apr. 30, 2019]
 Article 86-4 (Publication of Lists of Constructors Who Make Delayed Payments Habitually)
(1) The Minister of Land, Infrastructure and Transport shall publish a list of constructors whose total amount of delayed payments for the subcontract price, the rental for construction machinery and temporary equipment and materials, and the price of components for construction works is at least 10 million won (hereinafter referred to as "constructors who make delayed payments habitually") from among the constructors who have been subjected to measures (excluding measures with which procedures for dissatisfaction are under way, and where a constructor has been subjected to measures at least twice due to the same violation, the number of times of such measures shall be deemed once) under Article 81 or 82 at least twice, in violation of Article 34 (1) (including cases where it is applied mutatis mutandis in Article 32 (4)) for the last three years from the immediately preceding year: Provided, That the foregoing shall not apply where there are reasons prescribed by Presidential Decree, such as where the publication of a list is ineffective due to the death of a constructor who makes delayed payments habitually or declaration of his or her death in absentia. <Amended on Apr. 30, 2019; Jul. 27, 2021>
(2) The Deliberative Committee on the Publication of List of Constructors Who Make Delayed Payments Habitually (hereafter in this Article referred to as the "Deliberative Committee") shall be established under the jurisdiction of the Ministry of Land, Infrastructure and Transport in order to deliberate on whether to publish a list of constructors who make delayed payments habitually under paragraph (1). <Amended on Apr. 30, 2019>
(3) The Minister of Land, Infrastructure and Transport shall notify constructors subject to publication after deliberations by the Deliberative Committee of the fact that they are subject to the publication of a list, and give them an opportunity to make explanations within a fixed period of at least three months. <Amended on Apr. 30, 2019>
(4) In evaluating the execution capacity under Article 23, the Minister of Land, Infrastructure and Transport may reflect the record of delayed payments of constructors who make delayed payments habitually, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Apr. 30, 2019>
(5) Methods of the publication of a list of constructors who make delayed payments habitually and matters necessary for the organization and operation of the Deliberative Committee under paragraphs (1) and (2) shall be prescribed by Presidential Decree. <Amended on Apr. 30, 2019>
[This Article Newly Inserted on May 14, 2014]
[Title Amended on Apr. 30, 2019]
CHAPTER X SUPPLEMENTARY PROVISIONS
 Article 87 (Implementation of Retirement Pension System for Construction Workers)
(1) Any constructor who performs construction works prescribed by Presidential Decree shall subscribe to the retirement pension system for construction workers under the Act on the Employment Improvement of Construction Workers. <Amended on Apr. 30, 2019>
(2) Parties to a contract for construction works, who are obliged to subscribe to the retirement pension system for construction workers pursuant to paragraph (1), shall specify the amount required for the subscription to the retirement pension system for construction workers in the statement of the contract price calculation for the relevant construction works, as prescribed by Presidential Decree.
(3) The Minister of Land, Infrastructure and Transport may provide preferential treatment to constructors who have subscribed to the retirement pension system for construction workers pursuant to paragraph (2) in the appraisal of their execution capacity referred to in Article 23 and implementation of other construction polices. <Amended on Mar. 23, 2013; Apr. 30, 2019>
[This Article Wholly Amended on May 24, 2011]
 Article 87-2 (Training and Management of Construction Experts)
(1) The Minister of Land, Infrastructure and Transport may establish and promote policies for training and managing the human resources with specialized techniques and skills in the field of construction (hereinafter referred to as "construction experts"). <Amended on Mar. 23, 2013>
(2) Policies established by the Minister of Land, Infrastructure and Transport in accordance with paragraph (1) shall include the following: <Amended on Mar. 23, 2013>
1. Matters concerning supply of, and demand for, and utilization of construction experts;
2. Matters concerning training and education of construction experts;
3. Matters concerning career management and career certification for construction experts;
4. Other matters prescribed by Presidential Decree necessary for training and management of construction experts.
(3) The Minister of Land, Infrastructure and Transport may provide assistance to agencies involved in construction experts, the Association, mutual-aid associations, and constructors if necessary to promote the policies for training and managing construction experts. <Amended on Mar. 23, 2013; Apr. 30, 2019>
(4) Matters necessary for training and management of construction experts and assistance referred to in paragraphs (1) through (3) shall be prescribed by Presidential Decree.
(5) The Minister of Land, Infrastructure and Transport may request the heads of the relevant central administrative agencies, agencies involved in construction experts, such as agencies operating the retirement pension system for construction workers under Article 87, Associations, mutual-aid associations, constructors, etc. to submit data required for training and managing construction experts, as prescribed by Presidential Decree. In such cases, the person so requested shall comply therewith, in the absence of special circumstances. <Amended on Mar. 23, 2013; Apr. 30, 2019>
[This Article Wholly Amended on May 24, 2011]
 Article 87-3 (Management of Foreign Workers of Public Construction Works)
(1) The project owner of public construction works shall verify whether the contractor and subcontractor are legally employing foreign workers in accordance with relevant statutes and regulations, such as the Act on the Employment of Foreign Workers.
(2) Where it is necessary for the verification under paragraph (1), the project owner of the public construction works may request the contractor or subcontractor to submit data prescribed by Presidential Decree. In such cases, the person requested to submit data shall comply therewith unless there is a compelling reason not to do so.
(3) When it is determined based on the verification under paragraph (1) that the contractor or subcontractor has violated relevant statutes or regulations, the project owner of the public construction works shall take necessary measures, such as notifying the Minister of Land, Infrastructure and Transport and the heads of relevant agencies.
[This Article Newly Inserted on Jul. 27, 2021]
 Article 88 (Prohibition of Seizure on Wages)
(1) An amount equivalent to wages to be paid to workers of the relevant works (including any works subcontracted) from among the contract price of construction works for which a constructor is awarded a contract shall not be seized. <Amended on Apr. 30, 2019>
(2) The scope of the amount equivalent to wages referred to in paragraph (1) and method for calculation thereof shall be prescribed by Presidential Decree.
[This Article Wholly Amended on May 24, 2011]
 Article 89 (Prohibition against Divulging Facts Learned in Course of Performing Duties)
None of the following persons shall divulge the status of property and affairs of a constructor which he or she has learned in the course of performing his or her duties in the absence of special circumstances: <Amended on Aug. 6, 2013; Apr. 30, 2019>
1. A current or former public official engaged in the affairs of registration, report, or supervision referred to in this Act;
2. A person who conducts or conducted affairs relating to dispute mediation, such as members or expert advisers of the Committee;
3. A person who is or was engaged in affairs entrusted under Article 91 (3).
[This Article Wholly Amended on May 24, 2011]
 Article 90 (Legal Fiction as Public Official in Application of Penalty Provisions)
Members of the Committee, persons other than public officials from among the members of the Deliberative Committee on the Publication of List of Constructors Who Make Delayed Payments Habitually under Article 86-4 (2), or persons engaged in affairs entrusted under Article 91 (3) shall be deemed public officials for the purposes of Articles 127 and 129 through 132 of the Criminal Act. <Amended on Feb. 3, 2016; Apr. 30, 2019>
[This Article Wholly Amended on May 24, 2011]
 Article 91 (Delegation and Entrustment of Authority)
(1) The Minister of Land, Infrastructure and Transport may partially delegate his or her authority vested under this Act to the heads of agencies affiliated with the Ministry of Land, Infrastructure and Transport, Mayors/Do Governors, or heads of Sis/Guns/Gus (referring to the heads of autonomous Gus), as prescribed by Presidential Decree. <Amended on May 24, 2011; Mar. 23, 2013>
(2) Deleted. <Apr. 15, 1999>
(3) The Minister of Land, Infrastructure and Transport may entrust the following authorities to an agency designated by the Minister of Land, Infrastructure and Transport, as prescribed by Presidential Decree, from among the authorities of the Minister of Land, Infrastructure and Transport vested under this Act: <Amended on May 24, 2011; Mar. 23, 2013; Aug. 11, 2015; Feb. 3, 2016; Dec. 18, 2018; Apr. 30, 2019; Apr. 7, 2020>
1. Receipt of applications for registration of construction business pursuant to Article 9 and confirmation of the details of such applications;
2. Receipt of applications for alteration of entries in a construction business registration certificate or a construction business registration pocketbook pursuant to Article 9-2 and confirmation of the details of such applications;
2-2. Performance of education on construction business ethics and practice under Article 9-3;
3. Receipt of reports on the transfer of, corporate consolidation or merger with, and inheritance of, a construction business pursuant to Article 17, and confirmation of the details of such reports;
4. Appraisal of the execution capacity of constructors, receipt and verification of the details of performance records of construction works, etc., and requests for submission of relevant data under Article 23;
5. Appraisal of construction manager capacity of construction managers and receipt and confirmation of the results, etc. of construction management under Article 23-2;
6. Building-up and operation of the knowledge information system of construction industry referred to in Article 24;
7. Determination of the lower limits of the construction price referred to in Article 47 (2);
8. Guidance for cooperation between constructors referred to in Article 48;
8-2. Affairs regarding the evaluation of employment of construction workers provided for in Article 48-2;
9. Request for submission of data necessary to determine whether a constructor meets the standards for registration in connection with the fact-finding survey on the constructor conducted under Article 49, the confirmation of the content thereof, and other matters that the Minister of Land, Infrastructure and Transport deems necessary;
10. Training and management of construction experts under Article 87-2;
11. Comprehensive management of penalty points under Article 25 (5);
12. Publication and management of restrictions on participation in subcontracts under Article 29-3.
[Title Amended on May 24, 2011]
 Article 92 (Fees)
Any of the following persons shall pay fees, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: <Amended on Mar. 23, 2013>
1. A person who files an application for registration of construction business pursuant to Article 9 (1) and (2);
2. A person who files an application to re-issue a construction business registration certificate or construction business registration pocketbook under Article 9-2 (3);
3. A person who files an application for appraisal and public announcement of his or her execution capacity under Article 23 (1);
4. A person who files an application for appraisal and public announcement of his or her construction management capacity under Article 23-2 (1);
5. A person provided with construction industry information under Article 24 (1);
6. A person who files a request for mediation pursuant to Article 69 (3).
[This Article Wholly Amended on May 24, 2011]
CHAPTER XI PENALTY PROVISIONS
 Article 93 (Penalty Provisions)
(1) Any constructor or construction engineer assigned to a construction site pursuant to Article 40 (1), who causes serious damage to any major structural parts of a bridge, tunnel, railroad or other facilities prescribed by Presidential Decree during the defects liability period referred to in Article 28 after commencing the relevant construction works and poses danger to the public, by performing such construction works in violation of any statutes and regulations governing the safety of construction works, shall be punished by imprisonment with labor for not more than 10 years. <Amended on Aug. 14, 2018; Apr. 30, 2019>
(2) Any person who results in the death or injury of other persons by committing the crime referred to in paragraph (1) shall be punished by life imprisonment or imprisonment with labor for at least three years.
[This Article Wholly Amended on May 24, 2011]
 Article 94 (Penalty Provisions)
(1) Any person who commits the crime referred to in Article 93 (1) as a result of professional negligence shall be punished by imprisonment with or without prison labor for not more than five years or by a fine not exceeding 50 million won.
(2) Any person who results in the death or injury of other persons by committing the crime referred to in Article 93 (1) as a result of professional negligence shall be punished by imprisonment with or without labor not more than 10 years or by a fine not exceeding 100 million won.
[This Article Wholly Amended on May 24, 2011]
 Article 95 (Penalty Provisions)
Any person who does any of the following acts in a tender for construction works shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding 200 million won: <Amended on Feb. 3, 2016; Apr. 30, 2019>
1. Tendering at a prearranged price in collusion with other bidders for purposes of making unjust enrichment or interfering with fair price-fixing;
2. Presenting an estimated tender of another constructor;
3. Interfering with tenders of other constructors by a deceptive scheme, by force or by other similar means.
[This Article Wholly Amended on May 24, 2011]
 Article 95-2 (Penalty Provisions)
Any of the following persons shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding 50 million won: <Amended on Mar. 21, 2017; Apr. 30, 2019>
1. A person who performs construction business without registration as prescribed in Article 9 (1) or with registration obtained by improper means;
2. A constructor who permits any third person to contract or perform construction works by using his or her name or trade name and the other party involved, and a constructor who lends his or her construction business registration certificate or construction business registration pocketbook and the other party involved, in violation of Article 21 (1) or (2);
3. A person who assists in contracting or performing construction works using any third person's name or trade name or lending a construction business registration certificate or construction business registration pocketbook, in violation of Article 21 (3);
4. The owner of a building who allows any person to contract or perform construction works, in violation of Article 21 (4);
5. A person who acquires property or proprietary interest through improper solicitation or a person who provides property or proprietary interest through improper solicitation, in violation of Article 38-2.
[This Article Wholly Amended on May 24, 2011]
 Article 96 (Penalty Provisions)
Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won: <Amended on May 14, 2014; Feb. 3, 2016; Dec. 18, 2018; Dec. 31, 2018>
1. Deleted; <Mar. 21, 2017>
2. A person who engages in construction business without filing a report referred to in Article 17 or by filing a report by improper means;
3. Deleted; <Mar. 21, 2017>
4. A person who awards a subcontract in violation of Articles 25 (2) and 29 (1) through (3);
4-2. A person who conducts acts to disadvantage in violation of Article 38-3;
5. A person who performs construction works in violation of Article 41;
6. A person who violates a disposition of suspension of business referred to in Article 82, 82-2, or 83 without good cause;
7. A person who fails to fulfill the obligation to manage subcontracts under Article 29-2 (1) (applicable only where a subcontractor became subject to the suspension of business or other disposition issued under Article 82 (2) 3 and it is found that the constructor instructed the subcontractor to commit the violation or conspired the violation with the subcontractor).
[This Article Wholly Amended on May 24, 2011]
 Article 97 (Penalty Provisions)
Any of the following persons shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding 10 million won: <Amended on May 14, 2014; Aug. 14, 2018>
1. A person who violates the restriction on indication and advertisement referred to in Article 11;
2. A person who submits false performance records of construction works, status of affiliated engineers, and financial status referred to in Article 23 (3);
3. A person who submits false construction management records, status of affiliated human resources, and financial status referred to in Article 23-2 (2);
4. A person who fails to assign a construction engineer to a construction site referred to in Article 40 (1).
[This Article Wholly Amended on May 24, 2011]
 Article 98 (Joint Penalty Provisions)
(1) Where a representative of a corporation, or an agent, employee or other servant of the corporation or an individual commits a violation under Article 93 in connection with the business of the corporation or the individual, not only shall such violator be punished, but also the corporation or the individual shall be punished by a fine not exceeding one billion won: Provided, That the same shall not apply where such corporation or individual has not been negligent in giving proper attention and supervision to the relevant duties to prevent such violation.
(2) Where a representative of a corporation, or an agent, employee or other servant of the corporation or an individual commits a violation under Article 94, 95, 95-2, or 96 or subparagraph 1, 2, or 3 of Article 97 in connection with the business of the corporation or the individual, not only shall such violator be punished, but also the corporation or the individual shall be punished by a fine provided under respective Articles: Provided, That the same shall not apply where such corporation or individual has not been negligent in giving proper attention and supervision to the relevant duties to prevent such violation.
[This Article Wholly Amended on May 24, 2011]
[This Article was amended by Act No. 10719 promulgated on May 24, 2011, pursuant to the decision on unconstitutionality by the Constitutional Court made on July 30, 2009]
 Article 98-2 (Administrative Fines)
Either of the following persons shall be subject to an administrative fine not exceeding 20 million won:
1. A person who fails to fulfill the obligation to manage subcontracts under Article 29 (2) 1 (applicable only where a subcontractor became subject to the suspension of business or other disposition issued under Article 82 (2) 3 and it is found that the constructor acquiesced the violation);
2. A person who fails to comply with an order issued under Article 65-2 (3).
[This Article Wholly Amended on Dec. 18, 2018]
 Article 99 (Administrative Fines)
Any of the following persons shall be subject to an administrative fine not exceeding five million won: <Amended on Jun. 1, 2012; Aug. 6, 2013; Aug. 11, 2015; Dec. 26, 2017; Dec. 18, 2018; Dec. 31, 2018; Apr. 30, 2019; Nov. 26, 2019>
1. A constructor or his or her general successor who fails to notify the project owner, etc. of details of a disposition, in violation of Article 14 (2);
2. A constructor (in cases of a subcontract, excluding a constructor who has been awarded the subcontract) who fails to conclude in writing or deliver a contract for work, in violation of Article 22 (2);
3. A person who fails to notify by the completion date of the relevant works, or gives a false notice to, the project owner of the entries in the construction work ledger referred to in Article 22 (6);
3-2. A person who fails to give the notice under Article 22 (8) or misses the deadline for such notice;
3-3. A person who fails to guarantee the payment of the construction price, provide security, or pay insurance premiums, etc. under Article 22-2 (1) without good cause;
4. A person who fails to give the notice under Article 28-2 (2);
5. A person who fails to give the notice under Article 29 (6);
6. A person who fails to fulfill his or her obligation to manage subcontractors under Article 29-2 (1) (applicable only where a subcontractor became subject to the suspension of business or other disposition issued under Article 82 (2) 3 and the constructor's negligence is confirmed, such as a failure to verify the affiliation of any site engineer of a subcontractor, excluding cases where the constructor instructed the subcontractor to commit the violation, conspired the violation with the subcontractor or acquiesced the violation);
7. A person who fails to implement a subcontracting plan submitted under Article 31-2 (limited to a subcontracting plan submitted by a person awarded a contract) without good cause;
7-2. A person who fails to give notice of matters relating to subcontracted works, in violation of Article 31-3 (2), or who concludes a contract with terms and conditions different from notified terms and conditions, without good cause;
8. A person who fails to comply with a corrective order issued under subparagraph 4 of Article 81 due to his or her failure to pay the subcontract price, etc. referred to in Article 34 (1) by the due date;
9. A person who refuses, evades or interferes with an investigation or inspection or files a false report referred to in Article 49 (1);
10. A person who fails to attend and participate in a mediation meeting after he or she received notification of the details of request for mediation of a dispute from the Committee pursuant to Article 72;
11. A person who fails to comply with a corrective order or an instruction issued on the ground referred to in subparagraph 3, 5-2, 11 or 12 of Article 81;
12. A person who fails to complete education conducted under Article 9-3 (1);
13. A constructor who fails to request in writing additional or modified works referred to in Article 36-2 (1);
14. A person whose penalty points under Article 25 (5) exceed the threshold prescribed by Presidential Decree;
15. A person who fails to give the notice under Article 68-4 (1).
[This Article Wholly Amended on May 24, 2011]
 Article 100 (Administrative Fines)
Any of the following persons shall be subject to an administrative fine not exceeding five hundred thousand won: <Amended on Aug. 14, 2018>
1. A person who fails to file an application for alteration of entries under Article 9-2 (2) within a given period;
2. A construction engineer who deserts a construction site in violation of Article 40 (2);
3. A person who neglects to file a report referred to in Article 49 (1);
4. A person who fails to comply with a corrective order or instruction issued on the ground referred to in subparagraph 8 of Article 81.
[This Article Wholly Amended on May 24, 2011]
 Article 100-2 (Special Cases concerning Application of Provisions on Administrative Fines)
Subparagraph 8 of Article 99 shall not apply to an act with respect to which suspension of business is ordered or a penalty surcharge is imposed in lieu of the suspension of business under Article 82 (1) 5. <Amended on Jun. 1, 2012; Jun. 9, 2020>
[This Article Wholly Amended on May 24, 2011]
 Article 101 (Procedures for Imposition and Collection of Administrative Fines)
Administrative fines referred to in Articles 98-2, 99 and 100 shall be imposed and collected by the Minister of Land, Infrastructure and Transport, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Feb. 3, 2016>
[This Article Wholly Amended on Dec. 29, 2009]
ADDENDA <Act No. 5210, Dec. 30, 1996>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 1997: Provided, That the provisions of Article 9 shall enter into force on July 1, 1997 and the provisions of Article 87 shall enter into force on January 1, 1998.
Article 2 (Repeal of Other Statutes)
Any of the following statutes shall be repealed respectively:
1. The Construction Guarantee Act;
2. The Korea Specialty Contractor Financial Cooperative Act.
Article 3 (General Transitional Measures)
Any disposition issued under the provisions of the previous Construction Business Act, the Construction Guarantee Act or the Korea Specialty Contractor Financial Cooperative Act at the time this Act enters into force shall be deemed issued under the provisions of this Act.
Article 4 (Transitional Measures concerning Existing Builders of Gas Facilities)
Any person who has made any of the following registrations as the time of entry into force of this Act shall be deemed to made a registration of the relevant category of business pursuant to Article 11 (1):
1. Registration of a builder referred to in Article 12-2 (1) of the Urban Gas Business Act;
3. Registration of execution business of specific heat-using machinery and materials referred to in Article 51 of the Energy Use Rationalization Act;
4. Registration of maintenance and management business of structures referred to in Article 19 (1) of the Special Act on the Safety Control of Establishments;
5. Registration of ondol (hypocaust) execution business referred to in Article 56 (2) of the Building Act.
Article 5 (Transitional Measures concerning Existing Associations)
The construction associations, specialized construction associations and construction work business associations by category of business established under the previous provisions at the time this Act enters into force shall be deemed established pursuant to Article 50 (1), respectively.
Article 6 (Transitional Measures concerning Existing Mutual Aid Association)
The construction mutual aid association established under previous the Construction Guarantee Act, and the specialized construction mutual aid association and mutual aid association by category of business established under the Korea Specialty Contractor Financial Cooperative Act at the time when this Act enters into force shall be deemed established respectively pursuant to Article 54 (1).
Article 7 (Transitional Measures concerning Construction Business Dispute Mediation Committee)
The Construction Business Dispute Mediation Committee already established before this Act enters into force shall be deemed the Central Construction Dispute Mediation Committee pursuant to Article 69 (1), and the disputes pending under the Construction Business Dispute Mediation Committee at the time this Act enters into force shall be examined and mediated by the Central Construction Dispute Mediation Committee.
Article 8 (Transitional Measures concerning Penalty Provisions)
In applying the penalty provisions to acts committed before this Act enters into force, the previous provision shall apply.
Article 9 (Transitional Measures concerning Administrative Fine)
In applying the provisions of an administrative fine to any act committed before this Act enters into force, the previous provisions shall apply.
Article 10 Omitted.
Article 11 (Relationship to Other Statutes or Regulations)
In case where other statutes and regulations refer to the previous Construction Business Act, the Construction Guarantee Act and the Korea Specialty Contractor Financial Cooperative Act or any provision thereof at the time this Act enters into force, any of the above stated three Acts or any provision thereof may, if any corresponding provision in this Act, be construed to refer to this Act or the corresponding provisions thereof.
ADDENDA <Act No. 5386, Aug. 28, 1997>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Act No. 5453, Dec. 13, 1997>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Act No. 5965, Apr. 15, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Constructor)
A person who has obtained a license for or completed registration of a general construction business or specialized construction business under the previous provisions at the time this Act enters into force shall be deemed to have effected the registration of the relevant business under the amended provisions of Article 9 (1).
Article 3 (Transitional Measures concerning Authorization of Transfer of Construction Business)
The application for the authorization of transfer of construction business, consolidation or merger of corporations, or inheritance which is made under the previous provisions of Articles 17 and 18 at the time this Act enters into force shall be governed by the previous provisions.
Article 4 (Transitional Measures concerning Association)
The association established under the previous provisions of Article 50 at the time this Act enters into force shall be deemed the constructors' association established under this Act: Provided, That this shall be subject to the change in its articles of association which is aimed to meet the requirements under this Act within three months after this Act enters into force.
Article 5 (Transitional Measures concerning Administrative Disposition)
(1) An administrative disposition (including the disposition of the imposition of a penalty) against an act committed before this Act enters into force shall be taken under the amended provisions of this Act.
(2) The disposition of the suspension of business, imposition of a penalty, revocation of a license, or cancellation of a registration which have been taken under the previous provisions at the time this Act enters into force shall be deemed the disposition of the suspension of business, imposition of a penalty, or cancellation of a registration made under this Act.
Article 6 (Transitional Measures concerning Penalty Provisions)
In the application of the penalty provisions and the provisions of administrative fines to offences committed before this Act enters into force, the previous provisions shall apply.
Article 7 Omitted.
ADDENDA <Act No. 6112, Jan. 12, 2000>
(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation.
(2) (Applicable Cases regarding Restriction on Persons who Perform Construction Works) The amended provisions of Article 41 shall apply where the application of construction permit or the construction report is made under the Building Act or the approval of plans for a housing construction is applied for under the Housing Construction Promotion Act after the date this Act enters into force.
ADDENDA <Act No. 6627, Jan. 26, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2002.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 6640, Jan. 26, 2002>
(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation.
(2) (Transitional Measures concerning Application for Modifying Entries in Construction Business Registration Certificate or Construction Business Registration Pocketbook) Where any change has occurred in the entries in a construction business registration certificate or construction business registration pocketbook before this Act enters into force, the date of reckoning the time limit for application for changes under the amended provisions of Article 9-2 (2) shall be the enforcement date of this Act.
(3) (Transitional Measures concerning Penalty Provisions and Administrative Fines) In applying the penalty provisions and administrative fine to the acts committed before this Act enters into force, the previous provisions shall govern.
ADDENDA <Act No. 6802, Dec. 18, 2002>
(1) (Enforcement Date) This Act shall enter into force on March 1, 2003.
(2) (Transitional Measures concerning Penalty Provisions) The application of the penalty provisions to the acts committed before this Act enters into force shall be governed by the previous provisions.
ADDENDA <Act No. 6893, May 29, 2003>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 6938, Jul. 25, 2003>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 7306, Dec. 31, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 22 (5), 28-2 and 34 (3) shall enter into force starting from January 1, 2006, and the amended provisions of Articles 30 (1) and 82 (2) 3 shall enter into force on January 1, 2008.
Article 2 (Applicability concerning Preparation of Statement of Contract Price Calculation)
The amended provisions of Articles 22 (5), 28-2, 31 and 34 (3) shall apply from the first contract for work made and entered into after this Act enters into force.
Article 3 (Applicability concerning Mediation of Construction Disputes)
The amended provisions of Article 72 (3) shall apply from the first application for mediation to the Mediation Committee on Construction Disputes which is filed after this Act enters into force.
Article 4 (Transitional Measures concerning Criteria for Administrative Dispositions)
The previous provisions shall govern the administrative dispositions (including the disposition on imposing the surcharge) on violating acts before this Act enters into force.
Article 5 (Transitional Measures concerning Penalty Provisions)
The previous provisions shall govern the application of penalty provisions and an administrative fine to the acts before this Act enters into force.
Article 6 Omitted.
ADDENDA <Act No. 7428, Mar. 31, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 7473, Mar. 31, 2005>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 7513, May 26, 2005>
(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation.
(2) (Transitional Measures concerning Penalty Provisions) The previous provisions shall govern the application of penalty provisions to the acts committed before this Act enters into force.
ADDENDA <Act No. 7697, Nov. 8, 2005>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 41 shall enter into force three months after the date of its promulgation, and the amended provisions of Articles 13 (2), 14 and 83 shall enter into force six months after the date of its promulgation.
(2) (Applicability to Restrictions on Executors of Building Construction Works) The amended provisions of Article 41 shall apply starting from the portion of application for a construction permit or of making a report on a construction under the Building Act, or of applying for an approval of plans for a housing construction business under the Housing Act for the first time after this Act enters into force.
(3) (Applicability to Termination of Construction Business Registration of Constructors Who Become Disqualified for Registration) The amended provisions of subparagraph 3 of Article 83 shall apply starting from the constructors who become disqualified for registration of construction business for the first time after this Act enters into force.
(4) (Transitional Measures concerning Constructors Who Become Disqualified for Registration) The previous provisions shall govern the constructors who become disqualified for registration before this Act enters into force.
ADDENDA <Act No. 7796, Dec. 29, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2006.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 8477, May 17, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2008: Provided, That the amended provisions of Article 16 (3) 4 shall enter into force on July 1, 2009.
Article 2 (Transitional Measures concerning Scope of Operation by Constructors and Settlement of Contract Price Calculation)
(1) The amended provisions of Articles 16 (3) 4, 22 (5), 32 (4) (excluding the execution participants under the previous provisions), 34 (2), 35, subparagraph 5 of Article 81, and Article 87 (2) shall apply to the contracts for construction works (referring to contracts for the leases of construction machinery or supply contracts in cases of Article 32 (4)) that are concluded for the first time after this Act enters into force.
(2) The amended provisions of Article 29-2 shall apply to the construction works for which contract is awarded by a project owner to a contractor for the first time after this Act enters into force.
(3) The amended provisions of Article 31-2 shall apply to the construction works for which tender is publicly announced for the first time after this Act enters into force (where the tender is not publicly announced, it refers to the construction works for which contract is awarded after this Act enters into force).
Article 3 (Special Applicability to Restriction on Concurrent Operation)
(1) Notwithstanding the amended provisions of Article 12, a person registered for the business of performing general construction works may not register on the business involved in the installation of machinery and equipment prescribed by Presidential Decree (hereafter in this paragraph referred to as "business involved in the installation of machinery and equipment"), and a person registered for the business involved in the installation of machinery and equipment may not register on the business of executing general construction works until December 31, 2011.
(2) In applying paragraph (1), an individual who is a constructor may not become a representative of a construction corporation, and a representative of a construction corporation may not register on the construction business in his or her name.
Article 4 (Special Applicability to Appraisal and Public Announcement of Execution Capacity)
Where a general constructor registered under the previous provisions registers on the business of executing specialized construction works or a specialized constructor registered under the previous provisions registers on the business of executing general construction works after this Act enters into force, the Minister of Construction and Transportation may, in appraising and publicly announcing execution capacity pursuant to Article 23, approve the conversion of the existing performance records which are directly related to the newly registered business into the performance records of the newly registered business within the period and scope prescribed by Ordinance of the Ministry of Construction and Transportation.
Article 5 (Transitional Measures concerning Constructors)
A person registered for the general construction business or the specialized construction business under the previous provisions before this Act enters into force shall be deemed to have registered on the business of executing the relevant construction works under the amended provisions of Article 9 (1), and a registration date of construction business under the previous provisions or a report date under the previous provisions of Article 9 (4) shall be a start date of the period for reporting on the standards for construction business registration under the amended provisions of Article 9 (4).
Article 6 (Transitional Measures concerning Execution Participants)
(1) The agreements on the participation in work execution that have been concluded before this Act enters into force shall be governed by the previous provisions, notwithstanding the amended provisions of subparagraph 13 of Article 2, and Article 29 (2), (4) and (5).
(2) The status of execution participants according to the agreements on the participation in work execution that have been concluded before this Act enters into force shall be governed by the previous provisions, notwithstanding the amended provisions of Article 32 (3) and (4).
Article 7 (Transitional Measures concerning Restriction on Executors of Construction Works)
Where an order for construction works for facilities provided for in each subparagraph of Article 41 (2) has been placed and the contract for such order has been completed under the previous provisions at the time this Act enters into force, such construction works shall be governed by the previous provisions, notwithstanding the amended provisions of Article 41 (2).
Article 8 (Transitional Measures concerning Dispositions, etc. Taken to Specialized Constructors)
Any act, including registration, etc., done by a Mayor/Do governor (including a person who has been commissioned or entrusted with the relevant authority; hereafter in this Article the same shall apply) to specialized constructors, or any act, including reporting, etc., done by specialized constructors to a Mayor/Do governor under the previous provisions before this Act enters into force shall be deemed as the corresponding act done by or to the Minister of Construction and Transportation (including a person who has been commissioned or entrusted with the relevant authority; hereafter in this Article the same shall apply) under this Act.
Article 9 (Transitional Measures concerning Criteria for Administrative Dispositions)
The administrative dispositions (including the dispositions to impose administrative fines) on a violation committed before this Act enters into force shall be governed by the previous provisions.
Article 10 (Transitional Measures concerning Penalty Provisions)
The application of penalty provisions (including the provisions concerning administrative fines) to an act committed before this Act enters into force shall be governed by the previous provisions.
Article 11 (Relationship to Other Statutes or Regulations)
Where the former terms "general construction business", "specialized construction business", "general constructor", and "specialized constructor" and the provisions corresponding thereto are cited in other statutes or regulations at the time this Act enters into force, the terms "business of executing general construction works", "business of executing specialized construction works", "constructor registered for the business of executing general construction works" and "constructor registered for the business of executing specialized construction works" and the corresponding provisions in this Act shall be deemed to have been cited.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 8863, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 8971, Mar. 21, 2008>
This Act shall enter into force on the date of its promulgation: Provided, That the amended provision of Article 91 (3) 4-2 shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 9875, Dec. 29, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 98 shall enter into force on the date of its promulgation.
Article 2 (Applicability to Transfer of Construction Business)
The amended provisions of Article 17 (2) and subparagraph 4 of Article 20 shall apply from the first report on the transfer, etc. of a construction business after this Act enters into force.
Article 3 (Applicability to Issuance of Payment Guarantees of Subcontract Prices)
The amended provisions of Article 34 (2), (5) and (6) shall apply from the first subcontract concluded after this Act enters into force.
Article 4 (Applicability to Direct Payment of Subcontract Prices)
The amended provisions of Article 35 (1) 1 and 2 and (2) 1 and 1-2 shall apply from the first payment of the subcontract price made after this Act enters into force.
Article 5 (Applicability to Adjustment of Subcontract Prices due to Design Changes)
The amended provisions of Article 36 (2) shall apply from the first announcement of a tender (referring to the first contract concluded if a tender is not announced) after this Act enters into force.
Article 6 (Applicability to Corrective Orders)
The amended provisions of subparagraph 5-2 of Article 81 shall apply from the first subcontract concluded after this Act enters into force.
Article 7 (Transitional Measures concerning Dispositions of Imposition of Penalty Surcharges)
Dispositions for imposition of a penalty surcharge for violations committed before this Act enters into force shall be governed by the previous provisions.
Article 8 (Transitional Measures concerning Penalty Provisions)
The application of penalty provisions (excluding joint penalty provisions under Article 98) and the imposition of administrative fines for violations committed before this Act enters into force shall be governed by the previous provisions.
ADDENDA <Act No. 9999, Feb. 4, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Act No. 10339, Jun. 4, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force one month after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 10719, May 24, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 25 (4) shall enter into force on the date of its promulgation, and the amended provisions of Articles 11, 13 (1) 3 (limited to the provision concerning the amended provisions of Article 82-2 (3) and subparagraphs 8 and 13 of Article 83), 14, 16, 20, 25 (1) through (3), 29, 29-2, 32 (3), 36 (2), 38-2, 54 (5), 57-2, 65-2, and 68-2, subparagraph 4 of Article 81, Articles 82 (1) 4, 82 (2) 3 and 82-2, subparagraphs 8 and 13 of Article 83, Articles 83-2 (3), 84 and 86 (limited to the provision concerning the amended provisions of Article 82-2), subparagraphs 4 and 6 of Article 96, and subparagraphs 4 and 5 of Article 99 shall enter into force one year after the date of its promulgation. <Amended by Act No. 11015, Aug. 4, 2011>
Article 2 (Applicability to General Guarantees of Price Payment)
The amended provisions of Article 68-2 shall apply from the first announcement of a tender (referring to the first contract concluded if a tender is not announced) for construction works after this Act enters into force.
Article 3 (Transitional Measures concerning Rights to Security Deposits)
The extinctive prescription of the right to a security deposit a guarantee creditor has with a mutual-aid association under a guarantee agreement concluded before this Act enters into force shall be governed by the previous provisions.
Article 4 (Transitional Measures concerning Dispositions of Administrative Sanctions)
Dispositions of administrative sanctions (including dispositions for imposition of a penalty surcharge) for violations committed before this Act enters into force shall be governed by the previous provisions.
Article 5 (Transitional Measures concerning Penalty Provisions)
The application of penalty provisions (including imposition of administrative fines) to violations committed before this Act enters into force shall be governed by the previous provisions.
Article 6 Omitted.
ADDENDA <Act No. 11015, Aug. 4, 2011>
(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 1 of Addenda to the partially amended Framework Act on the Construction Industry (Act No. 10719), shall enter into force on the date of its promulgation.
(2) (Applicability to Restrictions on Executors of Construction Works) The amended provisions of Article 41 shall apply from the first application for a building permit or first report on a building under the Building Act, or the first application for approval of a housing construction project plan under the Housing Act.
ADDENDUM <Act No. 11181, Jan. 17, 2012>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 11466, Jun. 1, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 69 (2) and 69-2 (1) 2 shall enter into force on July 1, 2012.
Article 2 (Applicability to Notification of Subcontracts)
The amended provisions of Articles 29, 34 (4) and 37 (1) shall apply from the first construction works for which a contractor is awarded a contract by a project owner after this Act enters into force.
Article 3 (Transitional Measures concerning Grounds for Disqualification of Persons whose Registration has been Cancelled due to False Reports)
Where registration has been cancelled under subparagraph 2 of Article 83 before this Act enters into force shall be governed by the previous provisions.
Article 4 (Transitional Measures concerning Administrative Fines)
The imposition of an administrative fine for a violation committed before this Act enters into force shall be governed by the previous provisions.
ADDENDA <Act No. 11576, Dec. 18, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Guarantee System for Rental Payments of Leases of Construction Machinery)
The amended provisions of Article 68-3 shall apply from the first contract concluded between a constructor and a construction machinery lessor after this Act enters into force.
Article 3 (Applicability to Dispositions of Administrative Sanctions)
The amended provisions of Articles 81 and 82 shall apply from the first disposition of administrative sanction imposed after this Act enters into force.
Article 4 (Applicability to Limitation Period for Dispositions of Administrative Sanctions)
(1) The amended provisions of Article 84-2 shall apply from the first act of violation committed or the first expiry of a defects liability period after this Act enters into force.
(2) Concerning cases of an act of violation committed or a defects liability period expiring before this Act enters into force, no disposition of administrative sanctions shall be imposed where the enforcement date of this Act elapses the end date of the limitation period provided for in the amended provisions of Article 84-2.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 11794, May 22, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 26 Omitted.
ADDENDA <Act No. 12012, Aug. 6, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Payment Guarantee of Contract Prices)
The amended provisions of Article 22-2 shall apply, beginning with construction works for which the first contract is concluded after this Act enters into force.
Article 3 (Applicability to Imposition of Administrative Fines due to Non-attendance of or Non-participation in Dispute Mediation Meetings)
Administrative sanctions under the amended provision of subparagraph 10 of Article 99 shall apply, beginning with cases where a person fails to attend and participate in a mediation meeting after he or she receives notification of the details of request for mediation of a dispute from the Committee under the amended provisions of Article 72 after this Act enters into force.
ADDENDA <Act No. 12580, May 14, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Repeated Failure to Meet Criteria for Registration)
The amended provisions of Article 13 shall apply, beginning with construction business of which the first application for registration is filed after this Act enters into force.
Article 3 (Applicability to Defects Liability of Subcontractors)
The amended provisions of Article 28 shall apply, beginning with construction works for which a contractor enters into the first subcontract with a subcontractor after this Act enters into force.
Article 4 (Applicability to Disclosure of Data on Contracts of Subcontract Work)
The amended provisions of Article 31-3 shall apply, beginning with construction works for which a project owner enters into the first contract with a contractor after this Act enters into force.
Article 5 (Applicability to Direct Payment of Construction Machinery Rent and Subcontract Price)
The amended provisions of Articles 32 (4) and 35 shall apply, beginning with construction works for which a project owner enters into the first contract with a contractor after this Act enters into force.
Article 6 (Applicability to Cancellation of Registration of Construction Business)
The amended provisions of subparagraph 12 of Article 83 shall apply, beginning with cases where the head of the competent tax office cancels registration pursuant to Article 8 (7) of the Value-Added Tax Act after this Act enters into force.
Article 7 (Applicability to Publication of Lists of Constructors Who Make Delayed Payments Habitually)
The amended provision of Article 86-4 (1) shall apply, beginning with cases where a contractor violates Article 34 (1) (including cases where it is applied mutatis mutandis in Article 32 (4)) for the first time after this Act enters into force.
Article 8 (Transitional Measures concerning Incompetent Persons)
An adult placed under the protection of a legal guardian or quasi-incompetent person placed under the protection of a legal guardian under the amended provisions of Articles 13 (1) 2 and 55-2 (3) 2 and subparagraph 2 of Article 70-2 shall be deemed to include a person in whose case the effects of declaration of incompetency or quasi-incompetency under Article 2 of Addenda of the partly amended Civil Act, Act No. 10429, are maintained.
ADDENDA <Act No. 12591, May 20, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 13469, Aug. 11, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 28 (3) shall enter into force one year after the date of its promulgation
Article 2 (Applicability to Completion of Education Upon Registration of New Construction Business)
The amended provisions of Article 9-3 (1) shall apply, beginning with the first case where a registration certificate of construction business is received after this Act enters into force.
Article 3 (Applicability to Defects Liability of Contractor of Construction Works)
The amended provisions of Article 28 (3) shall apply, beginning with the first case where a contract for work is concluded after the same amended provisions enters into force.
Article 4 (Applicability to Performance Bond of Subcontract)
The amended provisions of Article 34-2 shall apply, beginning with the first case where a subcontract is concluded between a contractor and a subcontractor after this Act enters into force.
Article 5 (Applicability to Written Confirmation on Additional or Modified Works)
The amended provisions of Article 36-2 shall apply, beginning with the first case where a subcontract is concluded between a contractor and a subcontractor after this Act enters into force.
Article 6 (Applicability to Mitigation of Suspension of Business Based on Completion of Education on Construction Business)
The mitigation of suspension of business, etc. under the amended provisions of the latter part of Article 84 shall apply, beginning with the first case where a disposition for suspension of business, etc. is received after this Act enters into force.
ADDENDA <Act No. 14015, Feb. 3, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 54-2 shall enter into force three months after the date of its promulgation, and the amended provisions of Articles 68-2 and 68-3 (2), subparagraph 4 of Article 81, and Article 82 (1) 8 one year after the date of its promulgation, and the amended provisions of Articles 9 (4) and 49 (7), subparagraph 2 of Article 81, Articles 82 (1) 5, 83, and 91 (3) two years from the date of its promulgation.
Article 2 (Applicability to Reports on Standards for Registration)
The amended provisions of Article 9 (4) shall apply, beginning with the first person obligated to file a report on the standards for registration after the same amended provisions enters into force.
Article 3 (Applicability to Presumption of Contracts)
The amended provisions of Articles 22-3, 28-2, 34 (7), 38-3, and 68-3 (6) shall apply, beginning with the first case where a contract for work is concluded after this Act enters into force.
Article 4 (Applicability to Submission of Subcontract Plans)
The amended provisions of Article 31-2 (1) shall apply, beginning with the first case where a constructor intends to be awarded a contract for construction works after this Act enters into force.
Article 5 (Applicability to Restrictions on Executors of Construction Works)
The amended provisions of the main sentence of Article 41 (1) shall apply, beginning with the first case where an application for a building permit or a building report is filed under the Building Act or where an application for permission for activities of collective housing or an activity report is filed under the Housing Act.
Article 6 (Applicability to Abolition of General Guarantees of Price Payment)
The amended provisions of Articles 68-2 and 68-3 (2) shall apply, beginning with the first case where a contract for work is concluded after the same amended provisions enters into force.
Article 7 (Transitional Measures concerning Administrative Dispositions)
Administrative dispositions against any act committed before this Act enters into force shall be governed by the previous provisions.
ADDENDA <Act No. 14545, Jan. 17, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 15 Omitted.
ADDENDA <Act No. 14708, Mar. 21, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Disqualification for Registration of Construction Business)
The amended provisions of Article 13 (1) 3 (a) shall apply, beginning with the first case where the registration of construction business is cancelled on the ground prescribed in subparagraph 5 of Article 83 after this Act enters into force.
Article 3 (Applicability to Direct Performance of Construction Works)
The amended provisions of Article 28-2 (4) and (5) shall apply, beginning with the first case where a contract for construction works is concluded after this Act enters into force.
Article 4 (Applicability to Posting of Construction Signs)
The amended provisions of Article 42 (2) shall apply, beginning with the first construction works completed after this Act enters into force.
Article 5 (Transitional Measures concerning Dispositions of Administrative Sanctions)
Disposition of administrative sanction for any violation committed before this Act enters into force shall be governed by the previous provisions.
Article 6 (Transitional Measures concerning Penalty Provisions)
The application of penalty provisions against any act committed before this Act enters into force shall be governed by the previous provisions.
ADDENDUM <Act No. 14849, Aug. 9, 2017>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 15306, Dec. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Inspection of Propriety of Subcontracts)
The amended provisions of the latter part of Article 31 (3) and Article 31 (6) shall begin to apply where replacing a subcontractor or amending terms and conditions of a subcontract is requested under the latter part of Article 31 (3) for the first time after this Act enters into force.
Article 3 (Applicability to Restrictions on Executors of Construction Works)
The amended provisions of Article 41 (1) shall begin to apply where an application for a building permit under the Building Act (including cases where a building report is filed) or an application for the approval of a housing construction project plan under the Housing Act is filed for the first time after this Act enters into force.
ADDENDUM <Act No. 15720, Aug. 14, 2018>
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of subparagraph 10 of Article 81 shall enter into force on the date of its promulgation.
ADDENDA <Act No. 15991, Dec. 18, 2018>
Article 1 (Enforcement Date)
This Act enters into force six months after the date of its promulgation: Provided, That the amended provisions of Article 29-3 (1) 5 and 6 shall enter into force three years after the date of its promulgation, and the amended provisions of Article 48-2 shall enter into force one year after the date of its promulgation.
Article 2 (Applicability to Imposition of Penalty Points upon Contractors)
The amended provisions of Article 25 (5) and (6) shall begin to apply to the violations of Article 25 (5) committed after this Act enters into force.
Article 3 (Applicability to Restrictions on Participation in Subcontracts for Construction Works)
The amended provisions of Article 29-3 shall begin to apply to the violations of Article 29-3 (1) committed after this Act enters into force.
Article 4 (Transitional Measures)
The amended provisions of Articles 32 and 34 shall not apply to the construction works, the rental of construction machinery or the manufacturing and supply of parts for construction works, for which a contract has been concluded before this Act enters into force.
Article 5 (Transitional Measures concerning Imposition of Administrative Sanctions)
The previous provisions shall apply to the imposition of administrative sanctions for violations committed before this Act enters into force.
Article 6 (Transitional Measures concerning Penalty Provisions)
The previous provisions shall apply to penalty provisions for violations committed before this Act enters into force.
ADDENDA <Act No. 16101, Dec. 31, 2018>
Article 1 (Enforcement Date)
This Act enters into force on January 1, 2019. (Proviso Omitted.)
Articles 2 through 11 Omitted.
ADDENDA <Act No. 16136, Dec. 31, 2018>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on January 1, 2021: Provided, That the amended provisions of Article 22, 28-2, 31-3 and 49-2 and subparagraphs 3-2 and 7-2 of Article 99 shall enter into force six months after the date of its promulgation.
(2) The amended provisions of Article 16, 25 and 29 shall enter into force on either of the following dates:
1. Construction works ordered by the State, a local government, or a public institution prescribed by Presidential Decree: January 1, 2021;
2. Construction works ordered by a person other than the State, a local government, or a public institution prescribed by Presidential Decree: January 1, 2022.
(3) Notwithstanding paragraph (2), the amended provisions of Article 16 (1) 3 shall enter into force on January 1, 2024.
(4) Notwithstanding paragraph (2), the amended provisions of Article 16 (1) 4 shall enter into force on January 1, 2024 (limited to cases where a prime contract is awarded for specialized construction works for which the estimated price is less than 200 million won).
Article 2 (Pilot Projects)
The Minister of Land, Infrastructure and Transport may implement pilot projects only for designated construction works, among the construction works ordered by the State, a local government, or a public institution prescribed by Presidential Decree before this Act enters into force, by applying this Acts so as to ensure that this Act can be applied to construction sites smoothly.
Article 3 (Transitional Measures concerning Imposition of Administrative Sanctions)
The previous provisions shall apply to the imposition of administrative sanctions against violations committed before this Act enters into force.
Article 4 (Transitional Measures concerning Penalty Provisions)
The previous provisions shall apply to penalty provisions for the acts done before this Act enters into force.
ADDENDA <Act No. 16415, Apr. 30, 2019>
Article 1 (Enforcement Date)
(1) This Act enters into force six months after the date of its promulgation: Provided, That the amended provisions of Article 48-2 of the partial amendment (Act No. 15991) to the Framework Act on the Construction Industry shall enter into force on December 19, 2019.
(2) The amended provisions of Articles 16, 25 and 29 of the partial amendment (Act No. 16136) to the Framework Act on the Construction Industry shall enter into force on either of the following dates:
1. Construction works ordered by the State, a local government, or a public institution prescribed by Presidential Decree: January 1, 2021;
2. Construction works ordered by a person other than the State, a local government, or a public institution prescribed by Presidential Decree: January 1, 2022.
Article 2 Omitted.
Article 3 (Relationship to Other Statutes or Regulations)
A citation of any previous provision of the Framework Act on the Construction Industry by other statutes and regulations in force at the time this Act enters into force shall be deemed a citation of the relevant provision of this Act in lieu of such previous provision, if corresponding provisions exist herein.
ADDENDA <Act No. 16416, Apr. 30, 2019>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 16625, Nov. 26, 2019>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Article 2 (Applicability to Guarantee of Payment of Contract Price)
The amended provisions of Article 22-2 shall begin to apply to a contract for construction works entered into after this Act enters into force.
ADDENDA <Act No. 17221, Apr. 7, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Payment of Consideration and Prohibition of Retaliatory Actions)
The amended provisions of Articles 32 (4) and 38-3 (2) shall begin to apply to the first contract for manufacturing and supplying parts for construction works or for lending temporary equipment and materials concluded after this Act enters into force.
ADDENDUM <Act No. 17453, Jun. 9, 2020>
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDUM <Act No. 17543, Oct. 20, 2020>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 17653, Dec. 22, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2021. (Proviso Omitted.)
Articles 2 through 14 Omitted.
ADDENDA <Act No. 17939, Mar. 16, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Act No. 18338, Jul. 27, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 68-3 (2) shall enter into force on the date of its promulgation.
Article 2 (Applicability to Payment of Subcontract Prices)
The amended provisions of Article 34 (4) and (9) shall apply from the case where a contract for construction works (including subcontract) is concluded after this Act enters into force.
Article 3 (Applicability to Publication of Lists of Constructors Who Make Delayed Payments Habitually)
The amended provisions of Article 86-4 (1) shall apply from the case where the disposition under Article 81 or Article 82 is imposed on a constructor for violation of Article 34 (1) (including cases applied mutatis mutandis in Article 32 (4)) after this Act enters into force.
Article 4 (Applicability to Management of Foreign Workers of Public Construction Works)
The amended provisions of Article 87-3 shall apply from the case where a public announcement is made for tender for public construction works after this Act enters into force (where the tender is not publicly announced, it refers to the case where the contract is concluded).