ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON THE CONSTRUCTION INDUSTRY
Wholly Amended by Presidential Decree No. 15433, Jul. 10, 1997
Amended by Presidential Decree No. 15598, Dec. 31, 1997
Presidential Decree No. 15581, Dec. 31, 1997
Presidential Decree No. 16063, Dec. 31, 1998
Presidential Decree No. 16514, Aug. 6, 1999
Presidential Decree No. 16512, Aug. 6, 1999
Presidential Decree No. 16790, Apr. 18, 2000
Presidential Decree No. 16798, May 1, 2000
Presidential Decree No. 17296, Jul. 7, 2001
Presidential Decree No. 17347, Aug. 25, 2001
Presidential Decree No. 17740, Sep. 18, 2002
Presidential Decree No. 18092, Aug. 21, 2003
Presidential Decree No. 18146, Nov. 29, 2003
Presidential Decree No. 18312, Mar. 17, 2004
Presidential Decree No. 18736, Mar. 8, 2005
Presidential Decree No. 18822, May 7, 2005
Presidential Decree No. 18918, Jun. 30, 2005
Presidential Decree No. 19139, Nov. 25, 2005
Presidential Decree No. 19422, Mar. 29, 2006
Presidential Decree No. 19513, Jun. 12, 2006
Presidential Decree No. 20488, Dec. 28, 2007
Presidential Decree No. 20722, Feb. 29, 2008
Presidential Decree No. 20791, May 26, 2008
Presidential Decree No. 20805, Jun. 5, 2008
Presidential Decree No. 20947, Jul. 29, 2008
Presidential Decree No. 20977, Aug. 26, 2008
Presidential Decree No. 21098, Oct. 29, 2008
Presidential Decree No. 21214, Dec. 31, 2008
Presidential Decree No. 21233, Dec. 31, 2008
Presidential Decree No. 21626, Jul. 7, 2009
Presidential Decree No. 21765, Oct. 1, 2009
Presidential Decree No. 21819, Nov. 10, 2009
Presidential Decree No. 22173, May 27, 2010
Presidential Decree No. 22269, Jul. 12, 2010
Presidential Decree No. 22303, Jul. 26, 2010
Presidential Decree No. 22493, Nov. 15, 2010
Presidential Decree No. 22903, Apr. 14, 2011
Presidential Decree No. 23282, Nov. 1, 2011
Presidential Decree No. 23356, Dec. 8, 2011
Presidential Decree No. 23583, Feb. 2, 2012
Presidential Decree No. 23869, Jun. 21, 2012
Presidential Decree No. 23928, Jul. 4, 2012
Presidential Decree No. 24155, Oct. 29, 2012
Presidential Decree No. 24204, Nov. 27, 2012
Presidential Decree No. 24443, Mar. 23, 2013
Presidential Decree No. 24616, Jun. 17, 2013
Presidential Decree No. 25050, Dec. 30, 2013
Presidential Decree No. 25152, Feb. 5, 2014
Presidential Decree No. 25273, Mar. 24, 2014
Presidential Decree No. 25358, May 22, 2014
Presidential Decree No. 25532, Aug. 6, 2014
Presidential Decree No. 25727, Nov. 14, 2014
Presidential Decree No. 25751, Nov. 19, 2014
Presidential Decree No. 26517, Sep. 11, 2015
Presidential Decree No. 26844, Dec. 31, 2015
Presidential Decree No. 26979, Feb. 11, 2016
Presidential Decree No. 27115, Apr. 29, 2016
Presidential Decree No. 27299, Jun. 30, 2016
Presidential Decree No. 27440, Aug. 4, 2016
Presidential Decree No. 27444, Aug. 11, 2016
Presidential Decree No. 27751, Dec. 30, 2016
Presidential Decree No. 27792, Jan. 17, 2017
Presidential Decree No. 27960, Mar. 27, 2017
Presidential Decree No. 28211, Jul. 26, 2017
Presidential Decree No. 28325, Sep. 19, 2017
Presidential Decree No. 28471, Dec. 12, 2017
Presidential Decree No. 29006, Jun. 26, 2018
Presidential Decree No. 29086, Aug. 7, 2018
Presidential Decree No. 29163, Sep. 18, 2018
Presidential Decree No. 29269, Oct. 30, 2018
Presidential Decree No. 29415, Dec. 24, 2018
Presidential Decree No. 29665, Mar. 26, 2019
Presidential Decree No. 29877, Jun. 18, 2019
Presidential Decree No. 30256, Dec. 24, 2019
Presidential Decree No. 30423, Feb. 18, 2020
Presidential Decree No. 30509, Mar. 3, 2020
Presidential Decree No. 30893, Aug. 4, 2020
Presidential Decree No. 31006, Sep. 8, 2020
Presidential Decree No. 31102, Oct. 8, 2020
Presidential Decree No. 31222, Dec. 8, 2020
Presidential Decree No. 31328, Dec. 29, 2020
Presidential Decree No. 31380, Jan. 5, 2021
Presidential Decree No. 31516, Mar. 2, 2021
Presidential Decree No. 31608, Apr. 6, 2021
Presidential Decree No. 31928, Aug. 3, 2021
Presidential Decree No. 32014, Sep. 24, 2021
Presidential Decree No. 32272, Dec. 28, 2021
Presidential Decree No. 32447, Feb. 17, 2022
Presidential Decree No. 32809, Jul. 19, 2022
Presidential Decree No. 33112, Dec. 20, 2022
Presidential Decree No. 33456, May 9, 2023
Presidential Decree No. 33664, Aug. 8, 2023
CHAPTER I GENERAL PROVISIONS
Article 2 (Establishment of Master Plans for Construction Industry Promotion) |
(2) | When the Minister of Land, Infrastructure and Transport establishes a master plan under paragraph (1), he or she shall publicly notify the details thereof in the Official Gazette and notify the heads of the relevant central administrative agencies thereof. <Amended on Jun. 5, 2008; Mar. 23, 2013> |
(3) | "Other matters prescribed by Presidential Decree" in Article 6 (2) 6 of the Act means the following: <Amended on Aug. 6, 1999; Nov. 1, 2011> |
1. | Measures to improve productivity of construction works; |
2. | Measures to improve the quality, and to standardize the measurement, of construction materials; |
3. | Measures to develop a construction business management system. |
Article 3 Deleted. <May 27, 2010> |
Article 4 Deleted. <May 27, 2010> |
Article 5 Deleted. <May 27, 2010> |
Article 6 Deleted. <Aug. 25, 2001> |
CHAPTER II REGISTRATION OF CONSTRUCTION BUSINESS
Article 7 (Categories of Construction Business, Fields of Business by Category of Business, and Details of Business) |
Categories of construction business, field of business by business category, and details of business referred to in Article 8 of the Act and the details of business by category shall be as specified in attached Table 1. <Amended on Dec. 28, 2007; Dec. 29, 2020> [Title Amended on Dec. 29, 2020]
Article 7-2 (Registration of Main Field of Business and Cancellation of Registration) |
(1) | A person who intends file for registration of the business category of performing specialized construction works shall file an application for registration with the Minister of Land, Infrastructure and Transport by determining at least one field of business that represents a material portion of the business conducted by him or her (hereinafter referred to as "main field of business") among the business fields of the relevant business category when filing for registration of the construction business under the main clause of Article 9 (1) of the Act. <Amended on Dec. 28, 2021> |
(2) | Where a person who has filed for registration of the business category of performing specialized construction works intends to file for additional registration of a main field of business, he or she shall file an application for additional registration with the Minister of Land, Infrastructure and Transport after satisfying the standards under Article 13 (1) 1. In such cases, Article 9 shall apply mutatis mutandis to the examination of an application for registration of the main field of business. <Newly Inserted on Dec. 28, 2021> |
(3) | Where a constructor who has filed for registration of at least two main fields of business in the relevant business category pursuant to paragraphs (1) and (2) intends to cancel registration of part of the main fields of business, he or she shall file an application for cancellation with the Minister of Land, Infrastructure and Transport. <Newly Inserted on Dec. 28, 2021> |
(4) | Upon receipt of an application for cancellation under paragraph (3), the Minister of Land, Infrastructure and Transport shall cancel registration of the relevant main field of business and enter such fact in the construction business registration certificate and the construction business registration pocketbook under Article 9-2 of the Act and the register for construction business registration under Article 12 of this Decree. <Newly Inserted on Dec. 28, 2021> |
[This Article Newly Inserted on Dec. 29, 2020]
[Title Amended on Dec. 28, 2021]
Article 8 (Minor Construction Works) |
(1) | "Minor construction works prescribed by Presidential Decree" in the proviso of Article 9 (1) of the Act means the following: <Amended on Dec. 31, 1998; Dec. 28, 2007; Nov. 1, 2011; Oct. 29, 2012; Dec. 29, 2020> |
1. | Construction works the estimated amount [where the same work is ordered in two or more split contracts, the estimated amount of the construction works shall be the total amount of the estimated amount of each construction work, and where materials of the construction works are furnished by the owner of the construction works (including a contractor in cases of a subcontract), the estimated amount of the construction works shall be the amount including market prices of such materials and freight charges; hereinafter referred to as "estimated amount of construction works"] of which is below 50 million won as construction works falling under a business category of performing general construction works and details of business in such business classification under attached Table 1; |
2. | Construction works, the estimated amount of which is below 15 million won as construction works falling under a business category undertaking specialized construction works and details of business in such business classification under attached Table 1: Provided, That the following construction works shall be excluded: |
(a) | Gas facility installation works; |
(b) | Deleted; <Dec. 31, 1998> |
(c) | Steel structure works; |
(d) | Cableway installation works; |
(e) | Elevator installation works; |
(f) | Railroad track construction works; |
(g) | Heating installation works; |
3. | Installation works of machine equipment, etc. easily movable by assembling and dismantling (limited to where a manufacturer or a supplier of the relevant machine equipment, etc. installs on his or her own). |
(2) | Deleted. <Dec. 31, 1998> |
Article 9 (Examination of Applications for Registration of Construction Business) |
(1) | The Minister of Land, Infrastructure and Transport shall accept an application for registration filed under Article 9 (2) of the Act unless such registration falls under any of the following: <Newly Inserted on Nov. 1, 2011; Mar. 23, 2013> |
1. | Where the application does not meet the standards for registration referred to in Article 13 (1) and (2); |
3. | Other cases which are in violation of any restriction under the Act, this Decree or other statutes or regulations. |
(2) | If necessary to examine whether a person who files an application for registration of construction business pursuant to Article 9 (2) of the Act is qualified for registration, the Minister of Land, Infrastructure and Transport may actually confirm the holding status of capital, facilities and equipment or require the person to submit the results of diagnosis of his or her financial management conditions. <Amended on Aug. 6, 1999; Dec. 28, 2007; Feb. 29, 2008; Nov. 1, 2011; Mar. 23, 2013> |
[Title Amended on Aug. 6, 1999]
Article 10 (Management of Information on Registration of Construction Business) |
When the Minister of Land, Infrastructure and Transport has performed the following affairs, he or she shall enter such affairs into the information and communications network of the comprehensive control system of the construction industry information (hereinafter referred to as the "Knowledge Information System of Construction Industry") established and operated for systematic control of the construction industry information pursuant to Article 24 (3) of the Act within three days from the date he or she has performed such affairs: <Amended on Jun. 30, 2005; Dec. 28, 2007; Feb. 29, 2008; Mar. 23, 2013; Dec. 29, 2020; Dec. 28, 2021> 2. | Deleted; <Jun. 26, 2018> |
4. | Receipt of a report on transfer, merger, or succession of a construction business under Article 17 of the Act; |
5. | Correction orders, correction instructions, suspension of business, imposition of a penalty charge, or cancellation of registration under Articles 81 through 83 of the Act; |
7. | Registration of a main field of business (including additional registration) and cancellation of such registration under Article 7-2. |
[This Article Newly Inserted on Aug. 21, 2003]
Article 11 (Public Announcement of Construction Business Registration) |
Where the Minister of Land, Infrastructure and Transport registers a construction business pursuant to Article 9 (1) of the Act, he or she shall publicly announce such registration as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Aug. 6, 1999; Dec. 28, 2007; Feb. 29, 2008; Mar. 23, 2013> [Title Amended on Aug. 6, 1999]
Article 12 (Register for Construction Business Registration) |
(1) | When the Minister of Land, Infrastructure and Transport has granted registration of a construction business pursuant to Article 9 (1) of the Act, he or she shall prepare and manage a register by means of the Knowledge Information System of Construction. <Amended on Dec. 28, 2007; Feb. 29, 2008; Mar. 23, 2013> |
(2) | Deleted. <Dec. 28, 2007> |
(3) | Deleted. <Jun. 5, 2008> |
[This Article Wholly Amended on Aug. 6, 1999]
Article 12-2 Deleted. <Aug. 4, 2016> |
Article 12-3 (Matters Subject to Applications for Alteration of Entries in Construction Business Registration Certificate or Construction Business Registration Pocketbook) |
3. | Location of a business office; |
4. | Corporation (or resident) registration number; |
5. | Nationality, or the name of one's affiliated country. |
[This Article Newly Inserted on Sep. 18, 2002]
Article 12-4 (Contents and Methods of Education on Construction Business) |
(1) | The contents of the education on construction business under Article 9-3 (1) and (2) of the Act (hereinafter referred to as "education on construction business") shall be as follows: <Amended on Feb. 18, 2020> |
1. | A constructor's ethical management; |
2. | Statutes related to the construction industry; |
3. | Quality, safety, and environment management of construction works; |
4. | Other matters necessary for the sound development of the construction industry. |
(2) | The education on construction business shall be conducted by means of collective education, such as lectures and audio-visual education, and distance education, such as online lectures, and each education shall last at least eight hours. <Amended on Oct. 8, 2020> |
[This Article Newly Inserted on Feb. 11, 2016]
Article 12-5 (Institutions Conducting Education on Construction Business) |
(1) | The Minister of Land, Infrastructure and Transport may designate an institution to conduct education on construction business (hereinafter referred to as "education institution") pursuant to Article 9-3 (3) of the Act from among the following institutions: <Amended on Dec. 29, 2020> |
2. | A non-profit organization established under Article 32 of the Civil Act (limited to cases where an education course related to construction business is opened); |
(2) | The Minister of Land, Infrastructure and Transport shall designate an education institution after receiving applications from the institutions set forth in the subparagraphs of paragraph (1). |
(3) | Requirements for the designation of an education institution shall be as specified in attached Table 1-2. |
(4) | Upon designation of an education institution, the Minister of Land, Infrastructure and Transport shall issue a certificate of designation to the relevant education institution and publish the name, representative, location, etc. of such education institution on the Internet site, etc. |
(5) | An education institution shall issue a certificate of education completion to a constructor who has received the education. <Amended on Feb. 18, 2020> |
(6) | Except as provided in paragraphs (1) through (5), matters necessary for the education on construction business shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
[This Article Newly Inserted on Feb. 11, 2016]
Article 13 (Standards for Registration of Construction Business) |
(1) | The standards for registration of construction business under Article 10 of the Act shall be as follows: <Amended on Aug. 6, 1999; Aug. 25, 2001; Sep. 18, 2002; May 7, 2005; Nov. 25, 2005; Dec. 28, 2007; Feb. 29, 2008; Jun. 5, 2008; Nov. 1, 2011; Mar. 23, 2013; Nov. 14, 2014; Jun. 18, 2019; Dec. 29, 2020; May 9, 2023> |
1. | He or she shall have technological capabilities, capital (in cases of an individual, referring to the appraised value of assets provided to the construction business; hereinafter the same shall apply), facilities, and equipment (in cases of business category of performing specialized construction works, referring to technological capabilities, capital, structures, and equipment of the main field of business), as specified in attached Table 2; |
1-2. | He or she shall submit a written confirmation of the possible amount of guarantee issued by financial institutions, etc. designated by the Minister of Land, Infrastructure and Transport (hereinafter referred to as "financial institutions, etc.") pursuant to the following criteria [referring to confirmation that a security provided for in Article 56 (1) 1 of the Act (excluding a tender security] may be made on the amount in excess of the standard amount of capital under subparagraph 1; hereinafter the same shall apply). In such cases, financial institutions, etc. shall determine and disclose the detailed criteria therefor pursuant to the criteria for issuance and termination of written confirmation of the possible amount of guarantee, such as evaluation of financial conditions, credit conditions, etc. and provision of security, deposit of cash, etc. determined and publicly notified by the Minister of Land, Infrastructure and Transport: |
(a) | Financial institutions, etc. shall evaluate the financial status and credit status, etc. of persons applying for issuance of written confirmation of the possible amount of guarantee, and, according to the results of relevant evaluations, obtain security or a deposit of cash within the scope of not less than 25/100 but not more than 60/100 of the capital by business category under subparagraph 1; |
(b) | Deleted; <Dec. 28, 2007> |
(c) | Financial institutions, etc. shall state, on the written confirmation of the possible amount of guarantee, the terms and conditions under which they are to bear an obligation for guarantee on the amount of not less than the standard amount of capital under subparagraph 1 of a person subject to issuance of the written confirmation of the possible amount of guarantee; |
2. | An office meeting all of the following requirements shall be in place: |
(b) | The standards determined and publicly notified by the Minister of Land, Infrastructure and Transport, in relation to business performance, such as the location of the office, shall be met; |
3. | Where an unlawful business operator is prohibited from participating in a bid pursuant to statutes and regulations on contracts to which the State is a party, statutes and regulations on contracts to which a local government is a party, statutes and regulations on the management of public institutions, or statutes and regulations on local public enterprises, the period of prohibition must have passed first; |
4. | Deleted; <Nov. 14, 2014> |
5. | Where a disposition of suspension of the construction business is imposed, the fixed period must have passed first; |
6. | Deleted. <Aug. 21, 2003> |
(2) | Where a foreigner or a foreign corporation having a principal place of business in a foreign country files an application for registration of a construction business, the relevant applicant shall satisfy the following requirements for registration of the construction business: Provided, That the Minister of Land, Infrastructure and Transport may grant registration of the construction business on condition that the applicant satisfies the requirements prescribed in subparagraph 1 or 3 before the applicant enters into the first contract after completing registration for the construction: <Amended on Aug. 6, 1999; May 7, 2005; Dec. 28, 2007; Feb. 29, 2008; Mar. 23, 2013; Sep. 18, 2018> |
1. | If any person satisfying the requirements for technological capability as referred to in attached Table 2 is a foreigner, the foreigner shall have qualifications to sojourn for commercial matters, corporate investment, or trade management as prescribed in attached Table 1-2 of the Enforcement Decree of the Immigration Act; |
2. | If the applicant is a corporation, the capital at its principal office, and if the applicant is an individual, the appraised amount of his or her assets (including assets possessed in a foreign country), respectively, shall be not less than the standard specified in attached Table 2; |
[Title Amended on Aug. 6, 1999]
Article 14 Deleted. <Aug. 6, 1999> |
Article 15 Deleted. <Dec. 28, 2007> |
Article 16 (Special Cases concerning Standards for Registration of Construction Business) |
(1) | Where a constructor files an additional application for registration of another category of construction business, he or she shall be deemed to comply with the standards for registration of construction business under attached Table 2 in accordance with the following classifications: <Amended on Mar. 23, 2013; Feb. 11, 2016; Feb. 18, 2020; Dec. 29, 2020; Dec. 28, 2021; May 9, 2023> |
1. | Capital: He or she shall be deemed to already retain an amount of capital that corresponds to 1/2 of the minimum standard amount of capital for the business category he or she intends to register only for one business category within the limit of 1/2 of the minimum standard amount of capital, as referred to in attached Table 2, for the business category he or she holds (referring to the minimum standard amount of capital of the business category, the minimum standard amount of which is the highest where he or she holds at least two business categories); |
2. | Technological capability: Where the technological capability, referred to in attached Table 2, required for the business category he or she holds and the technological capability required for the business category he or she intends to file for registration are of the same type and grade and can be jointly utilized by those business categories, he or she shall be deemed to already have the technological capability of one person (or two persons, where the number of engineers who can be jointly utilized is at least five), limited to one business category: Provided, That where a constructor intends to file for additional registration of gas heating construction business [excluding where the constructor files for registration of heating works (class I) as his or her main field of business among gas heating construction business], he or she shall be deemed to already have engineers who can be jointly utilized. |
(2) | Among constructors approved for special cases concerning standards for registration under paragraph (1) 1, where a constructor who meets all of the following requirements files an additional application for registration of another category of construction business, he or she may be deemed to already have capital equivalent to a half of the minimum capital standard of the category of construction business, only once, for which he or she intends to obtain registration limited to a half of the minimum capital standard (where he or she has registered at least two categories of construction business, referring to the minimum capital standard for the category of construction business the minimum capital standard of which is the highest) under attached Table 2 of the category of construction business he or she has registered: Provided, That where he or she is subjected to measures or a penalty under subparagraph 2 after he or she registers a further category of construction business because he or she is deemed to have capital equivalent to a half of the minimum capital standard, he or she shall meet the minimum capital standard of the category of construction business he or she has additionally registered within 60 days from the date he or she is subjected to the relevant disposition or penalty: <Newly Inserted on Nov. 14, 2014; Feb. 18, 2020> |
1. | He or she shall be a constructor engaged in the construction business for at least 15 years; |
2. | He or she must never have been subjected to dispositions, such as the suspension of business, under Article 82, 82-2, or 83 of the Act, or a penalty due to a violation of this Act for the last 10 years. |
(3) | Where a constructor who meets all of the requirements referred to in the subparagraphs of paragraph (2) files an additional application for registration of at least two categories of construction business simultaneously, paragraphs (1) and (2) may apply thereto, respectively. <Newly Inserted on Nov. 14, 2014; Feb. 18, 2020> |
(4) | Paragraph (1) shall apply mutatis mutandis where a person, other than a constructor, intends to file the first application for registration of at least two categories of construction business. <Amended on Nov. 14, 2014; Feb. 18, 2020> |
(5) | Where a person who has filed for registration of a business category of performing specialized construction works intends to file for additional registration of his or her main field of business in the same business category or a person who intends to file for registration of a business category of performing specialized construction works intends to file for registration of at least two main fields of business, he or she shall be deemed to already have one of the engineers with the same type and class of technical capabilities who can be jointly utilized by those main fields of business: Provided, That where a person who has filed for registration of gas heating construction business intends to file for additional registration of a main field of business [excluding heating works (class I)] or a person who intends to file for registration of gas heating construction business intends to file for registration of at least two main fields of business [excluding heating works (class 1)], he or she shall be deemed to already have engineers who can be jointly utilized. <Newly Inserted on Dec. 29, 2020; Dec. 28, 2021> |
(6) | A constructor who has filed for registration of at least two categories of construction business before the enforcement of a partial amendment to the Enforcement Decree of the Framework Act on the Construction Industry (Presidential Decree No. 21819) may file an application with the Minister of Land, Infrastructure and Transport for special exceptions to the capital standards referred to in paragraph (1) 1. <Newly Inserted on Feb. 18, 2020; Dec. 29, 2020> |
[This Article Wholly Amended on Nov. 10, 2009]
Article 17 (Delivery of Construction Business Registration Certificate to Forestry Cooperatives) |
Where a Special Metropolitan City Mayor, a Metropolitan City Mayor, a Metropolitan Autonomous City Mayor, a Do Governor, or a Special Self-governing Province Governor (hereinafter referred to as "Mayor/Do Governor") receives a report pursuant to Article 11 (4) of the Forestry Cooperatives Act, he or she shall deliver a construction business registration certificate and a construction business registration pocketbook. <Amended on Aug. 6, 1999; May 1, 2000; May 7, 2005; Feb. 5, 2014> [Title Amended on Aug. 6, 1999; May 1, 2000]
Article 18 (Posting of Signs) |
Any constructor shall post a sign stating the details of his or her construction business registration at an easily visible spot of his or her business office as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Aug. 6, 1999; Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020>
Article 19 (Qualifications for Performing Construction Works) |
“Cases prescribed by Presidential Decree” in Article 16 (1) 7 of the Act means any of the following cases: <Amended on Jun. 21, 2012; May 22, 2014; Feb. 18, 2020; Oct. 8, 2020> 1. | Where any of the following constructors has been awarded a contract for construction works for which the relevant new technology or method of construction is utilized (limited to where the estimated construction amount corresponding to the construction works to which the relevant new technology or method of construction is applied is at least 70/100 of the total estimated construction amount): |
(b) | A constructor who has filed for registration to establish a patent right for a specific method of construction under Article 87 of the Patent Act; |
(c) | A constructor who has been granted by a patentee an exclusive license on his or her patent right for a specific method of construction under Article 100 of the Patent Act; |
(d) | A constructor who has been granted by a patentee a non-exclusive license on his or her patent right for a specific method of construction under Article 102 of the Patent Act; |
2. | Where a constructor qualified to perform general construction works is awarded a contract for another general construction works as construction works incidental to the relevant general construction works (referring to incidental works provided in Article 16 (2) of the Act). |
[This Article Newly Inserted on Nov. 1, 2011]
[Title Amended on Oct. 8, 2020]
Article 20 Deleted. <Oct. 8, 2020> |
Article 21 (Scope of and Criteria for Incidental Works) |
(1) | The scope of incidental works referred to in Article 16 (2) of the Act shall be as follows: <Amended on Aug. 6, 1999; Jun. 30, 2005; Dec. 28, 2007; Nov. 1, 2011; Feb. 18, 2020; Oct. 8, 2020> |
1. | Subordinate works required for or due to executing the principal works; |
2. | Where two or more categories of specialized works are combined, the estimated amount of the works is less than 300 million won, and the estimated amount of the principal works of such specialized works is not less than one half of the total estimated amount of the works, the rest of such works; |
3. | Deleted. <Dec. 29, 2020> |
(2) | Criteria for recognizing incidental works provided in paragraph (1) 1 of the Act shall be as follows: <Newly Inserted on Oct. 8, 2020> |
1. | There shall be dependence and connectivity recognizable between principal works and ancillary works in terms of the types of construction works; |
2. | The constructor of principal works shall be able to perform those works in consideration of the details of work for each business category of construction works, difficulty of construction technologies, and other factors; and performance of those works by the constructor of principal works shall not undermine the quality or safety of construction works. |
(3) | Details necessary for the scope and criteria of incidental works under paragraphs (1) and (2) shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport. <Newly Inserted on Oct. 8, 2020> |
[Title Amended on Oct. 8, 2020]
Article 22 Deleted. <Aug. 6, 1999> |
Article 23 Deleted. <Aug. 6, 1999> |
Article 24 Deleted. <Aug. 6, 1999> |
CHAPTER III CONTRACT AND SUBCONTRACT AGREEMENTS
Article 25 (Details of Contract Agreements on Construction Works) |
(1) | Matters to be specified in a contract for construction works pursuant to Article 22 (2) of the Act shall be as follows: <Amended on May 7, 2005; Dec. 28, 2007; Dec. 31, 2008; Dec. 24, 2019; Jan. 5, 2021; Dec. 28, 2021> |
1. | Details of construction works; |
2. | The contract price and the amount of wages out of the contract price; |
3. | Timing for commencement and completion of construction works; |
4. | If an agreement exists concerning advance payment of or payment for completed portion of the contract price, the timing, method and amount of the respective payments; |
5. | Matters concerning the burden of any loss caused by the discontinuance of construction works, rescission of the contract, or natural disasters; |
6. | Matters concerning the modification of a contract price or details of construction works owing to a modification of design, fluctuation of prices, etc.; |
7. | Matters concerning the issuance of a guarantee which certifies the payment of the price for a subcontract under Article 34 (2) of the Act (limited to cases of a subcontract agreement); |
10. | Matters concerning the amounts required for the subscription to the retirement benefits system for construction workers and their methods of burden, in cases of the construction works to be obliged to subscribe to the retirement benefits system for construction workers under Article 87 (1) of the Act; |
11. | Matters concerning the amounts and the industrial accident compensation insurance premiums under the methods of burden of the Industrial Accident Compensation Insurance Act, the employment insurance premiums under the Employment Insurance Act, and other various charges and methods to pay them under statutes or regulations in connection with the relevant construction works; |
12. | Matters concerning the methods of disposal and recycling of wastes produced from the relevant construction works; |
13. | Inspection for delivery and timing therefor; |
14. | Timing for payment of contract price after completion of construction works; |
15. | Matters concerning compensation for damage, such as payment of penalty, interests in arrears, etc., in cases of delay in fulfillment of the contract; |
16. | Liability period and methods of warranty against defects; |
17. | Matters concerning methods for the settlement of disputes, if any; |
(2) | Deleted. <Feb. 5, 2014> |
Article 26 (Notification of Entries in Construction Work Ledgers) |
(1) | A constructor who is contracted for construction work with the contract price of at least 100 million won shall, pursuant to Article 22 (6) of the Act, notify the owner of the details in the construction work ledger through the Knowledge Information System of Construction within 30 days from the date the contract for the work is entered into. <Amended on Dec. 28, 2007; Feb. 5, 2014; Feb. 18, 2020> |
(2) | A constructor, who is awarded a subcontract for construction works whose contract price is at least 40 million won from another constructor subject to paragraph (1), shall notify the project owner of the entries in the construction work ledger within 30 days from the date the subcontract is entered into, through the Knowledge Information System of Construction. <Newly Inserted on Dec. 28, 2007; Feb. 18, 2020> |
(3) | Where any change occurs in the matters notified or the need of an additional entry arises, a constructor under paragraphs (1) and (2) shall notify the project owner through the Knowledge Information System of Construction within 30 days from the date of such occurrence: Provided, That a change of less than 100 million won in the contract price under paragraph (1) or of less than 40 million won in the subcontract price under paragraph (2) need not be notified. <Amended on Dec. 28, 2007; Feb. 18, 2020> |
[This Article Newly Inserted on Sep. 18, 2002]
Article 26-2 (Clear Statement and Adjustment of Expenses, Such as Insurance Premiums) |
(1) | Parties to a contract for construction works shall clearly state expenses, such as insurance premiums referred to in Article 22 (7) of the Act (hereafter referred to as "insurance premiums, etc." in this Article), in the statement of contract price calculation (including the statement of subcontract price calculation; hereafter the same shall apply in paragraph (3)) pursuant to the standards determined and publicly notified by the Minister of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; May 27, 2010; Mar. 23, 2013; Feb. 5, 2014> |
(2) | A project owner (including a contractor in cases of a subcontract; hereafter the same shall apply in this Article) may ascertain whether a constructor who has been awarded a contract for such works has born insurance premiums, etc. In such cases, if a project owner deems it necessary, he or she may request such constructor to submit a confirmation demonstrating payment of insurance premiums, etc. <Amended on Feb. 18, 2020> |
(3) | Where insurance premiums for the National Pension under the National Pension Act, insurance premiums for National Health Insurance under the National Health Insurance Act, and long-term care insurance premiums under the Long-Term Care Insurance Act specified in the statement of the contract price calculation exceed the insurance premiums actually paid as a result of confirmation on the details of payment of insurance premiums, etc., the relevant project owner may adjust such excess amount. <Amended on May 27, 2010; Feb. 18, 2020> |
[This Article Wholly Amended on Dec. 28, 2007]
Article 26-3 (Scope of Public Institutions) |
[This Article Newly Inserted on Feb. 5, 2014]
[Previous Article 26-3 moved to Article 26-4 <Feb. 5, 2014>]
Article 26-4 (Scope of Small-Scale Construction Works Excluded from Guarantee for Payment of Contract Price) |
1. | Small construction works whose contract price per construction work is less than 50 million won; |
2. | A short-term construction work, the construction period of which does not exceed three months. |
[This Article Newly Inserted on Sep. 8, 2020]
[Previous Article 26-4 moved to Article 26-5 <Sep. 8, 2020>]
Article 26-5 (Details to Be Notified for Presumption of Contracts) |
"Matters prescribed by Presidential Decree, such as the details of the contracted construction works and contract price" in Article 22-3 (1) of the Act means the following: 1. | Matters referred to in the subparagraphs of Article 25 (1); |
2. | Other matters for which the project owner (in cases of a subcontract, referring to the contractor) has awarded a contract. |
[This Article Newly Inserted on Aug. 4, 2016]
[Moved from Article 26-4; previous Article 26-5 moved to Article 26-6 <Sep. 8, 2020>]
Article 26-6 (Notification of Presumption of Contracts and Methods of Reply) |
1. | A contents-certified mail; |
3. | Other methods through which details of the notification and reply and the receipt thereof can be confirmed objectively. |
(2) | Each notification and reply under paragraph (1) shall be sent to the address (including the electronic mail address or the certified electronic address referred to in paragraph (1) 2 (b)) of the project owner, contractor or subcontractor. |
[This Article Newly Inserted on Aug. 4, 2016]
[Moved from Article 26-5; previous Article 26-6 moved to Article 26-7 <Sep. 8, 2020>]
Article 26-7 (Retention of Written Documents) |
Pursuant to Article 22-3 (6) of the Act, each of project owner, contractor, and subcontractor shall retain the written documents referred to in paragraphs (1) and (2) of that Article for three years from the date the relevant contracted works or subcontracted works are completed. [This Article Newly Inserted on Aug. 4, 2016]
[Moved from Article 26-6; previous Article 26-7 moved to Article 26-8 <Sep. 8, 2020>]
Article 26-8 (Establishment and Operation of Comprehensive Management Systems of Construction Industry Information) |
(1) | The Minister of Land, Infrastructure and Transport may carry out any of the following affairs for the purpose of an efficient establishment of the comprehensive management systems of construction industry information under Article 24 (3) of the Act and the promotion of their utilization: <Amended on Feb. 29, 2008; Mar. 23, 2013> |
1. | Various research and development of the establishment and operation of the comprehensive management systems of construction industry information, and technological support thereto; |
2. | Implementation of a joint project for the establishment of the comprehensive management systems of construction industry information; |
3. | Standardization of the comprehensive management systems of construction industry information; |
4. | Promotion of the joint utilization of information utilizing the comprehensive management systems of construction industry information; |
5. | Other matters necessary for establishing and operating the comprehensive management systems of construction industry information. |
(2) | The Minister of Land, Infrastructure and Transport may organize and operate a consultative organization with a business entity, institution, or organization relating to the construction for the purpose of the efficient establishment and operation of the comprehensive management systems of construction industry information. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
[This Article Newly Inserted on Jun. 30, 2005]
[Moved from Article 26-7 <Sep. 8, 2020>]
Article 27 (Procedures for Requesting Submission of Materials for Comprehensive Management of Construction Industry Information) |
Where the Minister of Land, Infrastructure and Transport requests the submission of materials under Article 24 (4) of the Act, he or she shall notify in writing the following matters at least 15 days before the deadline of such submission: <Amended on Jun. 30, 2005; Feb. 29, 2008; Mar. 23, 2013> 1. | Grounds for the request of submission; |
2. | Deadline of submission; |
3. | Details of materials to be submitted; |
4. | Types and forms of materials to be submitted; |
5. | Method of utilizing materials to be submitted. |
[This Article Newly Inserted on Sep. 18, 2002]
Article 28 (Criteria for Imposition of Penalty Points upon Contractors) |
The criteria for imposition of penalty points by the Minister of Land, Infrastructure and Transport under Article 25 (5) of the Act shall be as specified in attached Table 3. [This Article Newly Inserted on Jun. 18, 2019]
Article 29 (Period for Estimate) |
"Certain period prescribed by Presidential Decree" in Article 27 of the Act means the following periods: <Amended on Nov. 1, 2011> 1. | In cases of construction work the estimated amount of which is at least three billion won: 20 days or more from the date when an explanation of the construction site has been given; |
2. | In cases of construction work the estimated amount of which is at least one billion won: 15 days or more from the date when an explanation of the construction site has been given; |
3. | In cases of construction work the estimated amount of which is at least 100 million won: 10 days or more from the date when an explanation of the construction site has been given; |
4. | In cases of construction work the estimated amount of which is less than 100 million won: five days or more from the date when an explanation of the construction site has been given. |
Article 30 (Defect Liability Period) |
(1) | The defect liability period by kind of work provided for in Article 28 (1) of the Act shall be as shown in attached Table 4. <Amended on Feb. 11, 2016> |
(2) | Where the defect liability period of construction works is separately determined by a contract agreement under the proviso of Article 28 (3) of the Act, the following matters shall be clearly set forth in the contract agreement: <Newly Inserted on Feb. 11, 2016> |
1. | The defect liability period separately determined and the reason therefor; |
2. | The additional fee for defect liability guarantee incurred by the defect liability period separately determined. |
Article 30-2 (Direct Performance of Construction Works) |
(1) | "Construction works not exceeding the amount prescribed by Presidential Decree" in the main clause of Article 28-2 (1) of the Act means construction works, the contract price of which is less than seven billion won. <Amended on Nov. 1, 2011; Mar. 26, 2019> |
(2) | "Ratio prescribed by Presidential Decree" in the main clause of Article 28-2 (1) of the Act means ratios according to the following classifications: <Amended on Nov. 1, 2011; Mar. 26, 2019> |
1. | Where the contract price is less than 300 million won: 50/100; |
2. | Where the contract price is at least 300 million won, but less than one billion won: 30/100; |
3. | Where the contract price is at least one billion won, but less than three billion won: 20/100; |
4. | Where the contract price is at least three billion won, but less than seven billion won: 10/100. |
(3) | "Cases prescribed by Presidential Decree" in the proviso of Article 28-2 (1) of the Act means the following: <Amended on Nov. 1, 2011; Jun. 21, 2012; Feb. 18, 2020> |
1. | Where a project owner has consented in writing as he or she deems it necessary to enhance the quality of construction works or efficiency in execution of construction works; |
2. | Where a contractor subcontracts the portion of his or her contracted construction works for which a patent or a new technology is used to a constructor capable of using the relevant patent or new technology. |
(4) | Notification of a plan for direct performance of construction works referred to in Article 28-2 (2) of the Act shall be given within 30 days from the date the contract has been entered into, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That where construction works directly performed under Article 28-2 (1) of the Act has met all the following requirements, a direct performance plan of the relevant construction works need not be notified: <Amended on Dec. 28, 2007; Feb. 29, 2008; Nov. 1, 2011; Mar. 23, 2013> |
1. | A contract price of construction works shall be less than 40 million won; |
2. | A period for construction shall be within 30 days. |
(5) | Where a person who entered into a contract has notified the consulting engineers of a direct performance plan of construction works supervised by consulting engineers within the deadline under paragraph (4), he or she shall be deemed to have notified the project owner thereof. |
(6) | "Public institution prescribed by Presidential Decree" in the main clause of Article 28-2 (4) of the Act means the following public institutions: <Newly Inserted on Sep. 19, 2017; Jun. 18, 2019> |
[This Article Newly Inserted on Jun. 30, 2005]
Article 31 (Scope of Blanket Subcontracts) |
(1) | Where most of the major portions of any construction works is subcontracted to any third constructor under the main clause of Article 29 (1) of the Act, shall be where, of contracted construction works (where contracted construction works are those for several buildings, referring to construction works for each building), all of the principal works excluding the portions corresponding to the incidental works as prescribed in Article 21 (1) are subcontracted. <Amended on Feb. 18, 2020> |
(2) | "Where the constructor plans, manages, and coordinates any construction works contracted to him or her, as prescribed by Presidential Decree" in the proviso of Article 29 (1) of the Act means where a constructor performs the management of workforce, materials, equipment, funds, etc., construction management, quality management, safety management, etc. at the site of construction works and is equipped with organization, system, etc. therefor, as determined by the Minister of Land, Infrastructure and Transport. <Newly Inserted on Jun. 30, 2005; Feb. 29, 2008; Nov. 1, 2011; Mar. 23, 2013; Feb. 18, 2020> |
(3) | Where split subcontracts can be awarded to at least two persons under the proviso of Article 29 (1) of the Act shall be any of the following cases: <Amended on Aug. 6, 1999; Dec. 28, 2007; Nov. 1, 2011; Nov. 27, 2012; Feb. 18, 2020; Oct. 8, 2020> |
1. | Where contracted construction works are divided into different business categories of performing specialized construction works, and each specialized construction works is subcontracted to respective constructors qualified to perform relevant specialized construction works; |
2. | Where construction works to be executed on an island or in an isolated mountain area is subcontracted to a small or medium constructor or a cooperator registered pursuant to Article 48 of the Act who resides in the Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Do, or a Special Self-Governing Province (hereinafter referred to as "City/Do") to which such island or are belong. |
Article 31-2 (Exceptions to Restrictions on Subcontract of Construction Works) |
"Requirements prescribed by Presidential Decree" in Article 29 (2) 2 of the Act and the proviso of paragraph (5) of that Article means cases where the amount of subcontracted construction works does not exceed 20/100 of the total contracted construction amount, and falls under any of the following: 2. | Where construction works to which construction methods subject to a patent right under Article 87 of the Patent Act is subcontracted to a constructor who has filed the patent application; |
3. | Deleted; <Aug. 3, 2021> |
4. | Where construction works, in which jumbo drills (referring to rock drilling rigs), shield TBMs (tunnel boring machines), or other construction machines whose manipulation requires full-time engineers are used, are subcontracted to a constructor equipped with such construction machines and full-time engineers for their manipulation; |
5. | Where construction works installing materials subject to a patent right under Article 87 of the Patent Act or a utility model right under Article 21 of the Utility Model Act (including cases where the relevant right is established in the course of manufacturing materials) is subcontracted to a constructor equipped with expertise in manufacturing and installing the relevant materials and full-time engineers for manufacturing and installing such materials; |
6. | Where ancillary works, in which specialized construction technologies, construction methods, and engineers are needed or special materials are manufactured and installed, is subcontracted to a constructor recognized by the project owner as having expertise in the relevant construction works. |
[This Article Newly Inserted on Oct. 8, 2020]
Article 32 (Notice of Subcontract) |
(1) | Any notice referred to in the main clause, with the exception of the subparagraphs, of Article 29 (6) of the Act shall be made within 30 days from the date of conclusion of a subcontract or consent to a sub-subcontract, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. The same shall apply to cases where such subcontract, etc. is changed or canceled. <Amended on Aug. 6, 1999; Feb. 29, 2008; Jun. 5, 2008; Nov. 1, 2011; Mar. 23, 2013; Oct. 8, 2020> |
(2) | In cases of construction works for which consulting engineers exist, where a person who subcontracted his or her construction work, etc. has notified the consulting engineers within the period referred to in paragraph (1), the owner of such construction work shall be deemed to have been notified thereof. <Amended on Aug. 6, 1999> |
(3) | Deleted. <Aug. 6, 1999> |
[Title Amended on Aug. 6, 1999]
Article 33 (Restrictions on Participation in Subcontracts for Construction Works) |
(1) | "Public institutions prescribed by Presidential Decree" in the former part, with the exception of the subparagraphs, of Article 29-3 (1) of the Act means the following public institutions: |
(2) | Where the Minister of Land, Infrastructure and Transport restricts the participation in subcontracts pursuant to the former part, with the exception of the subparagraphs, of Article 29-3 (1) of the Act, the criteria for such restriction shall be as specified in attached Table 3-2. |
(3) | Where the Minister of Land, Infrastructure and Transport publishes a disposition of restriction on participation in subcontracts in the comprehensive construction industry information network pursuant to Article 29-3 (3) of the Act, he or she shall include the following matters and publish them until the date immediately preceding the date the period of restrictions on participation in subcontracts commences, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: |
1. | Company name (trade name), name (the representative's name in cases of a corporation), and business registration number (corporation registration number in cases of a corporation); |
2. | Specific grounds for restrictions on participation in subcontracts; |
3. | Period of restrictions on participation in subcontracts; |
4. | Where the execution of restrictions on participation in subcontracts is suspended, the fact that the suspension of the execution thereof is suspended or canceled. |
[This Article Newly Inserted on Jun. 18, 2019]
Article 34 (Inspections of Propriety of Subcontracts) |
(1) | “Where the subcontract price falls short of the price computed in the ratio prescribed by Presidential Decree” in Article 31 (1) and (2) of the Act means any of the following: <Amended on Nov. 27, 2012; Mar. 26, 2019> |
1. | Where the subcontract price is less than 82/100 of the amount that corresponds to the portion of the subcontract out of the contract price (referring to an amount which includes administrative expenses, profits, and value-added tax in addition to the amount calculated for the portion of the construction works to be subcontracted based on the contracted unit prices (including direct and indirect labor costs, material costs and expenditure) described in the statement of contract price calculation made by the contractor; excluding a portion of amount borne by a contractor under related Acts and statutes or regulations, including the cost of material directly paid by a contractor to a subcontractor and the cost incurred in issuing a written payment guarantee of the price for subcontract under Article 34 (3) of the Act); |
2. | Where the subcontract price is less than 64/100 of the cost estimated by the project owner out of the construction works that corresponds to the subcontract. |
(2) | “Public institution prescribed by Presidential Decree” in Article 31 (2) of the Act means the following public institutions: <Amended on Jun. 18, 2019> |
(3) | Where a project owner intends to request a change of a subcontractor or of the details of a subcontract under the main clause, with the exception of the subparagraphs, of Article 31 (3) of the Act, he or she shall do so in writing within 30 days after receipt of a notice of subcontract under the main clause, with the exception of the subparagraphs, of Article 29 (6) of the Act or the date he or she becomes aware that such ground exists. <Amended on Oct. 8, 2020> |
(4) | The Minister of Land, Infrastructure and Transport shall determine and publicly notify the criteria that can be utilized in cases of inspecting the work execution capacity of any subcontractor, the propriety, etc. of the details of any subcontract under Article 31 (1) and (2) of the Act. <Amended on Mar. 23, 2013> |
(5) | A subcontract inspection committee (hereafter referred to as the “committee” in this Article) referred to in Article 31 (5) of the Act shall be comprised of not more than 10 members, including one chairperson and one vice chairperson. |
(6) | The chairperson of the committee shall be the head of a project-owning agency (referring to a person designated by the head of a project-owning agency, from among public officials of Grade II or III who belong to the relevant agency in cases of Cities/Dos, and from among executive officers or employees who are of Grade I or higher in cases of public agencies referred to in paragraph (2)), and the vice chairperson and members shall be appointed or commissioned by the chairperson from among the following persons: |
1. | A public official who are in a manager or higher position in the relevant project-owning agency (referring to an executive officer or employee who is of Grade II or higher in cases of public agencies referred to in paragraph (3)); |
2. | A person who is a research fellow or in a higher position in a construction-related research institute; |
3. | A person who has obtained a doctoral degree in the field of construction and has experience of research or work in the field for at least three years; |
4. | A person who is an assistant professor or in a higher level in university (limited to the field of construction); |
(7) | Each member provided in paragraphs (6) 2 through 5 shall hold office for a term of three years and may be appointed consecutively for only one further term. |
(8) | A majority of the members of the committee shall constitute a quorum, and any decision thereof shall require the concurring vote of at least a majority of those present. |
(9) | Article 68-2 shall apply mutatis mutandis to the exclusion of, challenge to, or recusal of a member. <Newly Inserted on Jul. 4, 2012> |
(10) | Except as provided in this Decree, matters necessary to operate the committee shall be determined by the chairperson through resolutions by the committee. <Amended on Jul. 4, 2012> |
[This Article Wholly Amended on Nov. 1, 2011]
Article 34-2 (Submission of Subcontract Plans) |
(1) | "Public institution prescribed by Presidential Decree" in the former part of Article 31-2 (1) of the Act means any of the following public institutions: <Amended on Nov. 1, 2011; Jun. 18, 2019> |
(2) | "Construction works prescribed by Presidential Decree" in the former part of Article 31-2 (1) of the Act means any of the following: <Amended on Nov. 1, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
(3) | Where any constructor intends to be awarded a contract for any construction works pursuant to Article 31-2 of the Act, he or she shall submit a subcontract plan including the following matters, to a project owner, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: <Amended on Feb. 29, 2008; Jul. 26, 2010; Nov. 1, 2011; Mar. 23, 2013; Nov. 19, 2014; Aug. 4, 2016; Jul. 26, 2017; Feb. 18, 2020> |
2. | The following matters concerning the main types of construction and quantities under subparagraph 1: |
(a) | Methods of, and criteria for, selecting a subcontractor; |
(b) | The amount of works to be subcontracted (limited to where the subcontracting amount which a person subject to a subcontract intends to be awarded as a subcontract amount is not less than the amount determined and publicly announced by the Minister of Land, Infrastructure and Transport). |
(4) | Deleted. <Aug. 4, 2016> |
(5) | In any of the following cases, a constructor may modify a subcontract plan submitted pursuant to paragraph (3): <Amended on Aug. 4, 2016; Feb. 18, 2020> |
1. | Where the subcontracting price which became different from the amount to be awarded as a subcontract amount referred to in paragraph (3) 2 (b) is simply reflected; |
2. | Where the project owner approves the modification in writing, deeming it necessary to improve the quality of construction works or the efficiency of construction works. |
[This Article Newly Inserted on Dec. 28, 2007]
[Previous Article 34-2 moved to Article 34-3 <Dec. 28, 2007>]
Article 34-3 (Disclosure of Contract Data for Subcontracting) |
(1) | "Public institutions prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 31-3 (1) of the Act and paragraph (2) 1 of that Article means any of the following public institutions: <Amended on Jun. 18, 2019> |
(2) | Where a project owner discloses contract materials for subcontract works pursuant to Article 31-3 (1) of the Act, he or she shall do so by publishing them on the website of the project owner within 30 days from the date he or she is notified of the subcontract, etc. pursuant to the main clause, with the exception of the subcontracts, of Article 29 (6) of the Act. <Amended on Jun. 18, 2019; Oct. 8, 2020> |
[This Article Newly Inserted on Nov. 14, 2014]
[Title Amended on Jun. 18, 2019]
[Previous Article 34-3 moved to Article 34-4 <Nov. 14, 2014>]
Article 34-4 (Clear Statement of Amount Incurred in Issuing Payment Guarantee of Subcontract Price) |
(1) | Deleted. <May 27, 2010> |
(2) | Parties to a contract for construction works shall clearly state the amount incurred in issuing a payment guarantee of the subcontract price under Article 34 (3) of the Act on the statement of contract price calculation pursuant to the criteria determined and publicly notified by the Minister of Land, Infrastructure and Transport. <Amended on Dec. 28, 2007; Feb. 29, 2008; Mar. 23, 2013> |
(3) | A project owner may verify whether a contractor performing construction works has used the amount under Article 34 (3) of the Act. In such cases, when the project owner deems it necessary, he or she may request the relevant contractor to submit documents evidencing details of payment of expenses incurred therein. <Amended on Dec. 28, 2007> |
(4) | Where the amount clearly stated on the statement for contract price calculation of construction works under Article 34 (3) of the Act exceeds the amount paid by the constructor, a project owner may settle the relevant excess after verifying the payment details of expenses incurred by the constructor under paragraph (3). <Amended on Dec. 28, 2007; Feb. 18, 2020> |
(5) | "Public institution prescribed by Presidential Decree" in Article 34 (7) of the Act means any of the following public institutions: <Newly Inserted on Aug. 4, 2016; Jun. 18, 2019> |
[This Article Newly Inserted on Jun. 30, 2005]
[Moved from Article 34-3; previous Article 34-4 moved to Article 34-5 <Nov. 14, 2014>]
Article 34-5 (Scope of Public Institutions) |
(1) | "Public institutions prescribed by Presidential Decree" in Article 34 (9) of the Act means the following public institutions: <Newly Inserted on Oct. 8, 2020> |
(2) | "Public institutions prescribed by Presidential Decree" in the provisions, with the exception of the items, of Article 35 (1) 1, and Articles 35 (2) 6, 38 (3), 38-2 (2) and (3), and 46 (2) of the Act means any of the following: <Amended on Nov. 1, 2011; Nov. 14, 2014; Jun. 18, 2019; Oct. 8, 2020> |
2. | Deleted; <Nov. 14, 2014> |
3. | Deleted; <Nov. 14, 2014> |
[This Article Newly Inserted on May 27, 2010]
[Moved from Article 34-4; previous Article 34-5 moved to Article 34-6 <Nov. 14, 2014>]
Article 34-6 (Grounds for Adjusting Construction Value) |
(1) | Deleted. <May 27, 2010> |
(2) | Notification shall be given under Article 36 (2) of the Act within 15 days from the date when the project owner has paid the adjusted construction value to the contractor due to a design change, etc. |
(3) | Details necessary for details and methods of giving notification under paragraph (2) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Newly Inserted on Dec. 31, 2008; Mar. 23, 2013> |
[This Article Newly Inserted on Jun. 30, 2005]
[Moved from Article 34-5; previous Article 34-6 moved to Article 34-7 <Nov. 14, 2014>]
Article 34-7 (Means of Requesting Written Document on Additional or Modified Works) |
(1) | Where a contractor intends to request necessary matters from a subcontractor or to obtain confirmation from the project owner under Article 36-2 (1) of the Act concerning the additional or modified works referred to in that paragraph (hereinafter referred to as "additional or modified works"), he or she shall do so by any of the following means: <Amended on Dec. 8, 2020> |
1. | A contents-certified mail; |
3. | Other means through which the contents and the receipt of written request and certification can be confirmed objectively. |
(2) | The request and confirmation under paragraph (1) shall be made to the addresses of the subcontractor and project owner (including electronic mail addresses or certified electronic addresses referred to in paragraph (1) 2 (b)). |
[This Article Newly Inserted on Feb. 11, 2016]
[Previous Article 34-7 moved to Article 34-8 <Feb. 11, 2016>]
Article 34-8 (Types of Unfair Special-Purpose Agreements) |
The types of unfair special-purpose agreements referred to in the latter part of Article 38 (2) of the Act shall be as follows: <Amended on Nov. 1, 2011; Nov. 27, 2012> 1. | A special-purpose agreement stipulating that no insurance premiums specified in the statement for subcontract price calculation under Article 22 of the Act be paid to the subcontractor; |
2. | A special-purpose agreement stipulating that a contractor unfairly passes on to a subcontractor or makes him or her bear the costs for handling civil appeals, installing temporary facilities, performing additional construction works or managing construction sites, etc., in violation of Article 22 (1) of the Act; |
3. | A special-purpose agreement stipulating that the defect liability to be borne by a contractor under Article 28 of the Act is passed on to or borne by a subcontractor or the defect liability is borne beyond the contractual period; |
4. | A special-purpose agreement stipulating that there shall be a significant decrease in the price paid to a subcontractor for a subcontract under Article 34 (1) of the Act on the ground that said price is paid in cash or prior to a payment deadline; |
5. | A special-purpose agreement stipulating that no advance payment that shall be paid under Article 34 (4) of the Act be paid or no progress payments be paid or the price for a subcontract be decreased on the ground that an advance payment is made; |
6. | A special-purpose agreement stipulating that the subcontract price is not adjusted where a contractor receives an adjustment for the construction value from a project owner due to a design change or fluctuations in economic conditions under Article 36 (1) of the Act; |
7. | A special-purpose agreement stipulating that the liability for damages that shall be borne by a contractor under Article 44 (1) of the Act be passed on to or borne by a subcontractor. |
[This Article Newly Inserted on May 27, 2010]
[Moved from Article 34-7 <Feb. 11, 2016>]
Article 34-9 (Payment of Monetary Awards) |
(1) | Persons eligible for the payment of a monetary award under Article 38-4 (3) of the Act (hereafter in this Article referred to as "monetary award") shall be those who first submit facts regarding any act specified in the subparagraphs of Article 38-4 (1) of the Act (hereafter in this Article referred to as "unfair practice") and evidentiary materials substantiating such facts: Provided, That the following persons shall be excluded from those eligible for the payment of a monetary award: |
1. | A project owner, contractor, or subcontractor who commits an unfair practice; |
2. | A project owner, contractor, or subcontractor who suffers damage due to an unfair practice; |
3. | A person who receives a monetary award pursuant to other statutes or regulations due to the same unfair practice. |
(2) | The Minister of Land, Infrastructure and Transport shall determine and publicly notify standards for paying a monetary award not exceeding two million won in consideration of the severity, etc. of an unfair practice. |
(3) | The Minister of Land, Infrastructure and Transport shall pay a monetary award to a reporting person within three months from the date a person authorized to make a disposition makes an administrative disposition against a person who commits an unfair practice, unless there is a compelling reason not to do so. |
(4) | To deliberate on matters regarding the payment of a monetary award, a monetary award payment examination committee may be established in a Regional Construction and Management Administration which performs affairs related to the operation of a fair construction support center under Article 82 (1) of the Construction Technology Promotion Act and Article 115 (2) 1 of the Enforcement Decree of that Act. |
(5) | Except as provided in paragraphs (1) through (4), specific standards, procedures, and methods for the payment of a monetary award, and details necessary for the establishment, operation, etc. of a monetary award payment examination committee shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport. |
[This Article Newly Inserted on Jul. 19, 2022]
CHAPTER IV EXECUTION AND TECHNICAL MANAGEMENT
Article 35 (Criteria for Assignment of Construction Engineers to Construction Sites) |
(1) | Construction engineers to be assigned to a construction site under Article 40 (1) of the Act shall be those corresponding to the type of the relevant construction works, and they shall be assigned thereto at the same time the construction works are commenced. <Amended on Sep. 18, 2002; Mar. 26, 2019> |
(2) | The assignment of construction engineers to a construction site under Article 40 (1) of the Act shall be subject to the criteria for the assignment of construction engineers by scale of expected construction amounts under attached Table 5: Provided, That where the parties to a contract for work agree on the qualification types, classes, or number of construction engineers to be assigned to a construction site upon considering the characteristics of the construction, their agreement shall apply. <Amended on Mar. 26, 2019; Jan. 5, 2021> |
(3) | With respect to any of the following construction works, any constructor may assign one construction engineer over two construction sites with consent from the project owner within the scope of not compromising the quality of construction and safety: <Amended on Dec. 31, 1998; Dec. 31, 2008; Nov. 27, 2012; Mar. 26, 2019; Feb. 18, 2020; Dec. 28, 2021> |
1. | The following construction works of the same type, the estimated amount of which is less than 500 million won: |
(a) | Construction works implemented in the same Si (including the Special Metropolitan City, Metropolitan Cities and Metropolitan Autonomous Cities) or Gun: Provided, That in cases of Jeju Special Self-Governing Province, construction works implemented within the jurisdiction of Jeju Special Self-Governing Province; |
(b) | Construction works in any areas between neighboring Sis (including the Special Metropolitan City, Metropolitan Cities and Metropolitan Autonomous Cities) and Guns, where the project owner deems that no impediment exists to construction management or other technical management; |
2. | Construction works of the same type newly executed at the site of construction works in the course of execution. |
(4) | Deleted. <Dec. 31, 1998> |
(5) | If a constructor assigns a construction engineer to a construction site under Article 40 (1) of the Act, he or she shall have the construction engineer obtain confirmation for such assignment from the project owner, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Nov. 1, 2011; Mar. 23, 2013; Mar. 26, 2019; Feb. 18, 2020> |
[Title Amended on Mar. 26, 2019]
Article 36 (Buildings Subject to Restrictions on Builders) |
(2) | “Buildings prescribed by Presidential Decree” in Article 41 (1) 2 (c) of the Act means buildings which are wholly or partially used for the following purposes: <Amended on Jul. 7, 2001; May 7, 2005; Nov. 25, 2005; Dec. 28, 2007; Nov. 1, 2011; Dec. 8, 2011; Feb. 2, 2012; Mar. 24, 2014; Jun. 26, 2018> |
5. | Hospitals (including general hospitals, oriental medical hospitals, and intermediate care hospitals) under the Medical Service Act; |
6. | Specialized recuperation facilities, integrated recuperation facilities, and tourist performance places from among tourist lodging facilities or facilities used by tourists under the Tourism Promotion Act; |
[This Article Newly Inserted on Apr. 18, 2000]
[Title Amended on Feb. 2, 2012]
Article 37 (Buildings Not Subject to Restrictions on Builders) |
"Buildings prescribed by Presidential Decree" in the proviso, with the exception of the subparagraphs, of Article 41 (1) of the Act means any of the following buildings: <Amended on Nov. 29, 2003; May 7, 2005; Nov. 25, 2005; Dec. 28, 2007; Oct. 29, 2008; Nov. 1, 2011; Aug. 11, 2016> 1. | Warehouses, storehouses, workshops, compost repository, stable, fish farm, and other buildings similar thereto established for the purposes of agriculture, forestry, livestock industry, or fishery; |
2. | Deleted; <Feb. 2, 2012> |
[This Article Newly Inserted on Apr. 18, 2000]
Article 38 (Public-Use Facilities) |
2. | Enshrinement facilities (limited to those, the area of which exceeds 100,000 square meters); |
3. | Cemeteries (limited to those, the area of which exceeds 100,000 square meters). |
1. | Erosion control facilities installed on a mountainous region or the seashore (limited to those, the area of a mountainous region or a dune on the seashore exceeds 10 thousand square meters); |
2. | Shore protection facilities, the length of which is at least one kilometer. |
[This Article Newly Inserted on Dec. 28, 2007]
[Title Amended on Nov. 1, 2011]
CHAPTER V RATIONALIZATION OF MANAGEMENT AND ASSISTANCE TO SMALL OR MEDIUM CONSTRUCTORS
Article 39 (Determination of Minimum Limit of Construction Amount) |
(1) | "Public institutions prescribed by Presidential Decree" in Article 47 (1) of the Act means the following public institutions: <Amended on Jun. 18, 2019> |
(2) | A constructor for whom the Minister of Land, Infrastructure and Transport may set the minimum limit of the amount of construction work under Article 47 (2) of the Act shall be a constructor whose execution capacity of construction works publicly announced under Article 23 (1) of the Act is within 3/100 of the constructors who have filed for registration of the business category of performing general construction. <Amended on Dec. 28, 2007; Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020> |
(3) | The minimum limit of the construction amount as referred to in paragraph (2) shall be the estimated amount of one construction work which a constructor who has filed for registration of the business category of performing general construction works shall not implement. <Amended on Dec. 28, 2007; Feb. 18, 2020> |
(4) | Where the Minister of Land, Infrastructure and Transport sets the minimum limit of the amount of a construction work, he or she shall publicly notify such limit and the constructors and construction works subject to such limit in the Official Gazette and enter such limit in the construction business registration pocketbook of relevant constructors. <Amended on Aug. 6, 1999; Dec. 28, 2007; Feb. 29, 2008; Dec. 31, 2008; Mar. 23, 2013; Feb. 18, 2020> |
Article 40 (Guidance on Joint Contracts) |
Where the Minister of Land, Infrastructure and Transport deems it necessary for maintaining mutually-beneficial cooperative relations among constructors under Article 48 (1) of the Act, he or she may determine and publicly notify the following matters with respect to joint contracts, etc., and provide guidance required for such matters: <Amended on Aug. 6, 1999; Feb. 29, 2008; May 27, 2010; Mar. 23, 2013; Feb. 18, 2020> 1. | Criteria for the type and operation of a joint contract, such as the limit of liability for the execution of works, recognition of work results, etc. between the project owner and joint contractors or between the members of joint contractors; |
2. | Recommendations on mutually-beneficial cooperation between constructors; |
3. | Criteria for the evaluation of mutually-beneficial cooperation between constructors. |
Article 41 (Registration of Cooperators) |
(1) | Where the Minister of Land, Infrastructure and Transport intends to have a constructor registered for the business category of performing general construction works file registration of his or her cooperators pursuant to Article 48 (2) of the Act, he or she may determine the business category to be registered, scope of registration, and other matters necessary for registration. <Amended on Dec. 28, 2007; Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020> |
(2) | A constructor registered for the business category of performing general construction works may examine construction performance experience, construction performance records, financial structure, etc. of another constructor whom he or she intends to file for registration of his or her cooperator pursuant to Article 48 (2) of the Act. <Amended on Dec. 28, 2007; Feb. 18, 2020> |
(3) | Where any registration is filed pursuant to Article 48 (2) of the Act, the effective period of such registration shall be one year, but may be renewed by one year upon agreement between the parties. |
Article 42 (Matters to Be Observed) |
(1) | Where registration of a cooperator is made under Article 48 (2) of the Act, a constructor having registered the business category of performing general construction works who receives such registration and a constructor who makes registration of a cooperator shall determine matters to be observed by each other according to a mutual agreement, and each one of them shall perform them in good faith and in accordance with the principles of trust on equal position. <Amended on Dec. 28, 2007; Feb. 18, 2020> |
(2) | A constructor having registered the business category of performing general construction works who receives registration pursuant to Article 48 (2) of the Act may support funds, technique, etc. for execution of work by an agreement with a cooperator who has made registration. In such cases, the constructor who has registered the business category of performing general construction works shall not interfere with the management or affairs of the cooperator on the pretext of such support. <Amended on Dec. 28, 2007> |
Article 43 (Special Cases concerning Subcontract Agreement) |
Where a constructor who has filed for registration of the business category performing general construction works and his or her registered cooperator under Article 48 (2) of the Act enter into a blanket subcontract agreement including matters falling under the subparagraphs of Article 25 (1), they need not state specified registered matters in the subcontract agreement. <Amended on Dec. 28, 2007; Feb. 18, 2020>
Article 44 (Termination of Registration of Cooperators) |
A constructor who has filed for registration of the business category performing general construction works and his or her registered cooperator under Article 48 (2) of the Act may terminate the registration relations where the other party fails to implement the matters to be observed under Article 42. <Amended on Dec. 28, 2007; Feb. 18, 2020>
Article 44-2 (Data for Evaluation of Employment of Construction Workers) |
"Data prescribed by Presidential Decree, such as information on the employment insurance, certification of family friendliness, creation of an intra-company labor-welfare fund and status of project implementation of a constructor" in the former part of Article 48-2 (2) of the Act means the following data: 1. | Data regarding the current status of subscription to employment insurance for construction workers belonging to the constructor; |
4. | Other data prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport as necessary for evaluating the status of employment of construction workers by constructors, their efforts to promote welfare, etc. |
[This Article Newly Inserted on Oct. 8, 2020]
Article 45 (Fact-Finding Surveys on Constructors) |
(1) | When the Minister of Land, Infrastructure and Transport or the head of a local government (limited to where it is necessary to handle affairs entrusted pursuant to Article 86 (1)) has public officials under his or her control conduct a fact-finding survey on the management status or materials and facilities of a constructor pursuant to Article 49 (1) of the Act, he or she shall notify the constructor of the grounds therefor in advance. <Amended on Dec. 28, 2007; Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020> |
(2) | Matters necessary for the matters to be observed by the public officials who investigate or inspect under Article 49 (1) of the Act may be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
(3) | The content of the investigation of management status under Article 49 (7) of the Act shall be the investigation of whether the standards for registration of construction business referred to in Article 10 of the Act are met. <Newly Inserted on Aug. 4, 2016> |
(4) | When the Minister of Land, Infrastructure and Transport or the head of a local government intends to conduct an investigation of management status pursuant to Article 49 (7) of the Act, he or she shall notify the relevant constructors of the period and contents of investigation, and the grounds therefor. <Newly Inserted on Aug. 4, 2016; Feb. 18, 2020> |
(5) | Except as provided in paragraphs (3) and (4), the Minister of Land, Infrastructure and Transport may determine and publicly notify matters necessary for the investigation of management status. <Newly Inserted on Aug. 4, 2016> |
[This Article Newly Inserted on Jun. 30, 2005]
[Title Amended on Feb. 18, 2020]
CHAPTER VI ORGANIZATION OF CONSTRUCTORS
Article 46 (Cooperative Relations between Associations) |
The Association established by constructors under Article 50 (1) of the Act (hereinafter referred to as the "Association") may use each other's business or jointly perform business. <Amended on Feb. 18, 2020> [This Article Wholly Amended on Aug. 6, 1999]
[Title Amended on Feb. 18, 2020]
Article 47 (Matters to Be Entered in Articles of Association) |
Any of the following matters shall be entered in the articles of association of the Association under Article 50 (5) of the Act: <Amended on Aug. 6, 1999> 3. | Location of the principal office; |
5. | Qualifications as a member; |
6. | Fixed number, terms of office, and methods to elect officers; |
7. | Composition of general meeting and matters to be resolved at such general meeting; |
8. | Composition of the board of directors and matters to be resolved at such board of directors; |
9. | Matters concerning assets and accounts; |
10. | Procedures for changing the articles of association. |
Article 48 (Supervision over Association) |
The Association shall submit a business plan and a draft budget of income and expenditure to the Minister of Land, Infrastructure and Transport prior to the commencement of each fiscal year. <Amended on Aug. 6, 1999; Feb. 29, 2008; Mar. 23, 2013>
Article 49 (Number of Constructors Required for Consent at Time of Establishment of Association) |
"The number of constructors prescribed by Presidential Decree" in Article 51 (1) of the Act means 1/10 of the constructors. <Amended on Aug. 6, 1999; Nov. 1, 2011> [Title Amended on Feb. 18, 2020]
CHAPTER VII CONSTRUCTION-RELATED MUTUAL-AID ASSOCIATIONS
Article 50 (Matters to Be Entered in Articles of Association) |
The following matters shall be entered in the articles of association of a mutual-aid association (hereinafter referred to as "mutual-aid association") in accordance with Article 54 (5) of the Act: <Amended on Aug. 6, 1999> 3. | Location of an office; |
4. | Matters concerning amount per share, methods of contributing for such share and calculation of equity; |
5. | Matters concerning qualifications for, and entry and secession of members; |
6. | Matters concerning assets and accounts; |
7. | Matters concerning the general meeting; |
8. | Matters concerning the steering committee; |
9. | Matters concerning officers and staff; |
10. | Matters concerning financing; |
11. | Matters concerning business matters and implementation thereof; |
12. | Matters concerning the alteration in the articles of association; |
13. | Matters concerning the dissolution and the settlement of residual property; |
14. | Matters concerning the method of public announcement. |
Article 51 (Steering Committee) |
(1) | A mutual-aid association shall establish a steering committee. <Amended on Aug. 6, 1999> |
(2) | Each steering committee shall consist of the following members and the number of the members of the steering committee, who are members of a mutual-aid association, shall not exceed 1/2 of the total number of the members of the mutual-aid association: <Amended on Aug. 6, 1999; Sep. 18, 2002; Aug. 21, 2003; Dec. 28, 2007; Feb. 29, 2008; Nov. 1, 2011; Mar. 23, 2013; Feb. 11, 2016; Apr. 6, 2021; Aug. 8, 2023> |
1. | Up to 14 members elected at a general meeting by direct and secret ballot in accordance with the criteria determined by the Minister of Land, Infrastructure and Transport, such as the number of investment units, from among the members of the relevant mutual-aid association; |
2. | One person designated by the Minister of Economy and Finance from among public officials under his or her jurisdiction; |
3. | One person designated by the Minister of Land, Infrastructure and Transport from among public officials under his or her jurisdiction; |
4. | Deleted; <Apr. 6, 2021> |
5. | Deleted; <Apr. 6, 2021> |
6. | Up to 14 members who fall under any of the following and are commissioned by the Minister of Land, Infrastructure and Transport: |
(a) | A current or former professor or vice professor at a university or a senior research fellow at a government invested research institute in the major field of the construction industry or finance; |
(b) | A certified lawyer or public accountant; |
(c) | A current or former executive officer or a higher-ranking executive officer at the Financial Supervisory Service or a financial institution; |
(d) | A person who has abundant knowledge and experience in the affairs of mutual-aid association and has served the relevant business for at least two years. |
(3) | Each member referred to in paragraph (2) 1 and 6 shall hold office for a term of two years and may be reappointed for only one further term, and the terms of office for a member to fill a vacancy shall be the remainder of his or her predecessor's term of office. <Amended on Dec. 31, 1998; Aug. 6, 1999; Apr. 6, 2021> |
(4) | Each steering committee shall have a chairperson and two vice-chairpersons, but the chairperson and vice-chairpersons shall be elected from among and by its members by direct or secret ballot, respectively. In such cases, the chairperson and one of the vice-chairpersons shall be elected from among members provided in paragraph (2) 6. <Amended on Feb. 11, 2016; Apr. 6, 2021> |
(5) | The chairperson shall convene the steering committee and preside over it. |
(6) | Each steering committee shall deliberate and decide on the following matters and may supervise the execution of affairs of the mutual-aid association: <Amended on Aug. 6, 1999; Apr. 6, 2021> |
1. | Basic policies concerning a business program, and other operation and management of affairs; |
2. | Matters regarding budgets and settlement of accounts; |
3. | Matters regarding loans; |
4. | Matters concerning the appointment and dismissal of an executive officer; |
5. | Other matters prescribed by the articles of association. |
(7) | Where the chairperson intends to convene a meeting of the steering committee to deliberate on the following matters, he or she shall inform the Minister of Land, Infrastructure and Transport of the relevant matters before convening the meeting and submit related materials: <Newly Inserted on Apr. 6, 2021> |
2. | Matters regarding budgets and settlement of accounts; |
3. | Matters recognized by the chairperson or vice chairperson as having a material impact on securing accountability in guarantee projects and mutual-aid projects referred to in Article 56 (1) 1 and 5 of the Act and ensuring the sound operation of the business of the mutual aid association. |
(8) | Where the Minister of Land, Infrastructure and Transport receives related materials pursuant to paragraph (7), he or she may request the re-examination of matters subject to deliberation under that paragraph. <Newly Inserted on Apr. 6, 2021> |
(9) | The president of the mutual aid association may appear before the steering committee to present his or her opinion. <Newly Inserted on Apr. 6, 2021> |
Article 52 (Exclusion of, Challenge to, or Recusal of Members) |
(1) | Where an agenda item falls under any of the following, the relevant member of a steering committee shall be excluded from deliberation and resolution thereof: |
1. | Where an agenda item is financial support for a specific member of the mutual aid association, such as debt guarantee, provision of security, and debt relief, and the person who receives the relevant support is any of the following: |
(a) | A member or a person who is or was the spouse of a member; |
(b) | A present or former relative of a member; |
(c) | A person for whom advice, research, service, etc. are provided by any member or institution, organization, or corporation to which the member belongs; |
2. | Where an agenda item involves a transaction contract, and a party to the contract falls under any item of subparagraph 1. |
(2) | Where there is any reason for excluding a member of the steering committee under paragraph (1) or where the circumstances indicate that it would be difficult to expect a fair deliberation and resolution by a member of the steering committee, the president or a member of a mutual-aid association or a member of the steering committee may file a request for a challenge with the steering committee; and the steering committee shall determine whether to accept the request. In such cases, the relevant member of the steering committee shall not participate in the decision-making process. |
(3) | Where there are grounds for exclusion under paragraph (1) or challenge under paragraph (2) regarding a member, he or she shall recuse himself or herself from the deliberation and decision of the relevant agenda. |
[This Article Newly Inserted on Apr. 6, 2021]
Article 53 (Number of Constructors Required for Consent at Time of Establishment of Mutual-Aid Association) |
In Article 55 (1) of the Act, "number of constructors prescribed by Presidential Decree" means 1/3 of the constructors. <Amended on Aug. 6, 1999; Nov. 1, 2011> [Title Amended on Feb. 18, 2020]
Article 54 (Registration) |
(1) | When the establishment of the mutual-aid association is authorized, a mutual-aid association shall register the following particulars at the seat of its principal office: <Amended on Aug. 6, 1999> |
5. | Date of authorization for establishment; |
6. | Total value of investment; |
7. | Amount of one unit of investment; |
9. | Matters concerning the restriction on a transfer of an investment certificate; |
10. | Name and resident registration number of an officer (in cases of a chief director, including an address); |
11. | Matters concerning the restriction on the right of representation; |
12. | Matters concerning an agent; |
13. | Method of public announcement. |
(2) | Where the mutual-aid association establishes its branch or sub-branch office, etc. (hereinafter referred to as "branch office"), it shall register the following matters within three weeks: <Amended on Aug. 6, 1999; Dec. 28, 2007> |
1. | At the seat of the principal office, name and seat of the established branch office; |
2. | At the seat of a newly-established branch office, matters as prescribed in the above paragraph (1) 1, 2, 4, 10 through 13; |
3. | At the seat of an existing branch office, name and seat of the newly established branch office. |
(3) | Where the mutual-aid association removes its principal office or branch office, it shall register the following particulars within three weeks: <Amended on Dec. 31, 1998; Aug. 6, 1999> |
1. | Where the principal office is removed to a place within the jurisdiction of another register office, the effect of such removal at the former seat of the principal office and the seat of the branch office, and the particulars as referred to in paragraph (1) at the new seat of the principal office; |
2. | Where the branch office is removed to a place within the jurisdiction of another register office, the effect of such removal at the seat of the principal office, the former seat of the branch office and the seat of the other branch offices, and the particulars as referred to in paragraph (2) 2 at the new seat of the branch office; |
3. | Where the principal office or branch office is removed from one place to another within the jurisdiction of the same register office, the effect of such removal at the seat of the principal office and branch office. |
(4) | Where any alteration occurs in any of the particulars (excluding the seat of an office) mentioned in paragraph (1), the registration thereof shall be made within three weeks after the date of such alteration: Provided, That the registration for any alteration in the total value of investments as prescribed in the above paragraph (1) 6 may be made within three months after the expiration of a fiscal year on the basis of the end of each fiscal year. |
(5) | Where the mutual-aid association closes its branch office, it shall make a registration of the effect of such closing at the seat of the principal office and branch office within three weeks. <Amended on Aug. 6, 1999> |
Article 55 (Investment and Partner's Liability) |
(1) | The total value of investments of the mutual-aid association shall be the total nominal value of accounts for investments contributed by its partners. <Amended on Aug. 6, 1999> |
(2) | The amount of each unit of an investment shall be equal. |
(3) | The mutual-aid association shall issue an investment certificate indicating a partner's investment and deliver it to its partner, under the conditions as prescribed by the articles of association. <Amended on Aug. 6, 1999> |
(4) | The liability of a partner shall be limited to the value of his or her investment quota. |
Article 56 (Subject Matter and Details to Be Guaranteed by Mutual-Aid Associations) |
(1) | The subject matter of guarantee to be provided by a mutual-aid association under Article 54 (5) of the Act shall be the duties or obligations which a partner bears in the course of running the following businesses: <Amended on Dec. 31, 1997; Aug. 6, 1999; May 7, 2005> |
1. | Tender guarantees: To guarantee the performance of duties concerning the payment of a security for the tender which a partner participating in a tender of construction works, etc. bears as the participant in the tender; |
2. | Contract guarantees: To guarantee the performance of duties concerning the payment of a contract deposit which a partner bears in connection with the performance of contracted works, etc.; |
3. | Work performance guarantees: To bear the duties of performance of contract in place of its partner where he or she fails to perform the contractual duties of contracted works, or to guarantee the payment of a definite amount where he or she does not perform such duties; |
4. | Damage guarantee: To guarantee the obligations for the payment of damages for loss sustained by a third person in course of a partner's performing the contracted works, etc.; |
5. | Defect liability guarantees: To guarantee the execution of duties concerning repairs of defects which have occurred in connection with management of business, such as construction works, etc. of a partner; |
6. | Advance payment guarantees: To guarantee the obligation for return of advance payment to be received by a partner in connection with contracted works, etc.; |
7. | Subcontract guarantees: To guarantee the obligations corresponding to those referred to in subparagraphs 1 through 6 which a partner bears in connection with works, etc. which he or she intends to subcontract for, or subcontracts for. |
(3) | "Guarantees prescribed by Presidential Decree" in Article 56 (1) 1 of the Act means the following guarantees: <Amended on Nov. 1, 2011; Jun. 17, 2013> |
1. | Guarantees of authorization and permission; |
2. | Guarantees of materials purchase; |
4. | Guarantees of tax payment; |
5. | Guarantees of subcontract price payment; |
6. | Deleted; <Aug. 4, 2016> |
8. | Other guarantees, which are determined by the articles of association, of the performance of property duties which a partner bears in connection with the construction business carried on by himself or herself. |
(4) | Each mutual-aid association may determine and enforce contractual terms and conditions with regard to the details, scope, conditions, etc. of various guarantees to be given thereby. <Amended on Aug. 6, 1999> |
Article 56-2 (Profit-Making Business of Mutual Aid Association) |
"Profit-making business prescribed by Presidential Decree" in Article 56 (2) 2 of the Act means the following business: <Amended on Jul. 29, 2008; Nov. 1, 2011> [This Article Newly Inserted on Dec. 28, 2007]
Article 57 (Guarantee Limits) |
(1) | The overall guarantee limit up to which each mutual-aid association may provide a guarantee pursuant to Article 54 (5) of the Act shall be 35 times the aggregate amount of investment and reserve funds, and the Minister of Land, Infrastructure and Transport may publicly announce the guarantee limit of each mutual-aid association in consideration of the financial soundness and guarantee risks of individual mutual-aid associations: Provided, That where it is guaranteed by a guarantee or insurance of a financial institution, insurance company or any other similar institution, or by taking other security, such guarantees shall not be included in the guarantee limit of the mutual-aid association. <Amended on Aug. 6, 1999; Nov. 25, 2005; May 27, 2010; Mar. 23, 2013> |
(2) | In determining the guarantee limit pursuant to paragraph (1), investments and reserve funds shall be applied on the basis of the settled accounts of the end of the year preceding each business year: Provided, That if, during the business year, the capital has been increased or assets have been revaluated under the Assets Revaluation Act, it shall be applied on the basis of investments and reserve funds at the time the increase of capital or revaluation of assets has been finished. <Amended on May 7, 2005> |
(3) | The limit by category of guarantee up to which each mutual-aid association may provide a guarantee with respect to its partners shall be determined, in consideration of the accident rates by category of guarantee, and the credit evaluation of the partners (including corporations, etc. referred to in Article 56 (2) of the Act). <Amended on Aug. 6, 1999; Nov. 25, 2005; Jan. 5, 2021> |
(4) | Where a mutual-aid association determines the limit by the categories of guarantees pursuant to paragraph (3), it shall notify the Minister of Land, Infrastructure and Transport of the limit so determined. <Amended on Aug. 6, 1999; Feb. 29, 2008; Mar. 23, 2013> |
Article 58 (Provision and Use of Credit Information) |
(1) | Where it is necessary in connection with its business, a mutual-aid association may provide credit information data of its partners or related debtors to a comprehensive credit information collection agency defined in the Credit Information Use and Protection Act, a credit information company, or a claims collection agency referred to in that Act, or use their data. <Amended on Dec. 31, 1998; Aug. 6, 1999; May 7, 2005; Oct. 1, 2009; Sep. 11, 2015; Aug. 4, 2020> |
(2) | No mutual-aid association shall use or divulge any credit information data referred to in paragraph (1) for any purpose other than for business purposes. <Amended on Aug. 6, 1999> |
Article 59 (Transfer of Title of Investment Certificates) |
(1) | Where a current or former partner intends to transfer his or her shares pursuant to Article 59 (1) of the Act, he or she shall obtain a transfer of title of investment certificates from the mutual aid association under the conditions as prescribed by the articles of association. <Amended on Aug. 6, 1999; Jan. 5, 2021> |
(2) | Where a mutual aid association disposes of shares acquired on any of the grounds falling under Article 60 (1) 2 through 5 of the Act, it shall dispose of such shares after transferring the title to the mutual aid association. <Amended on Aug. 6, 1999; Sep. 18, 2002; Jan. 5, 2021> |
[Title Amended on Jan. 5, 2021]
Article 60 (Appropriation of Legal Liability Reserves) |
(1) | Under Article 63 (1) of the Act, a mutual-aid association shall appropriate, according to the types of guarantees, legal liability reserves for the outstanding balance of guarantees as at the end of every business year to cover the payments on debtor's behalf contingent upon the satisfaction of the conditions of surety contract as a fulfillment of the obligation arising from the guarantee contract. <Amended on Aug. 6, 1999> |
(2) | Under Article 63 (1) of the Act, a mutual-aid association shall appropriate contingency reserves at the end of every business year in order to ensure financial soundness in any crisis situation. <Amended on Nov. 1, 2011> |
(3) | Deleted. <Nov. 1, 2011> |
(4) | Deleted. <Nov. 1, 2011> |
Article 61 (Funds to Prepare for Payment of Guarantee Deposit) |
In order to prepare for the payment of guarantee deposit under Article 67 (3) of the Act, the mutual-aid association shall hold in cash, or a deposit, etc. to be immediately encased, funds for preparing for the payment of such guarantee deposit at least equivalent to 5/100 of the sum total of investments and reserve funds. <Amended on Aug. 6, 1999; Nov. 14, 2014>
Article 62 (Fee and Interest) |
(1) | The mutual-aid association may collect, from its partners (including corporations, etc. referred to in Article 56 (2) of the Act), a guarantee fee, interest of a loan, a discount charge of a bill, and a user fee. <Amended on Aug. 6, 1999; Nov. 25, 2005> |
(2) | The rates of a guarantee fee, interest of a loan, and discount of a bill to be charged under paragraph (1) shall be subject to the approval of the Minister of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
Article 63 (Investigation of Situations of Execution) |
(1) | Where it is deemed necessary for investigating into the situations of execution of works pursuant to Article 64 (1) of the Act, the mutual-aid association may request a supervisor or guarantee creditor of such works to furnish data concerning an execution method, process, materials, etc. <Amended on Aug. 6, 1999> |
(2) | Where the mutual-aid association intends to state its opinion to partners pursuant to Article 64 (1) of the Act, it shall be made in writing: Provided, That if it is required to correct errors urgently, each mutual-aid association may state its opinion first orally. <Amended on Aug. 6, 1999> |
Article 63-2 (Investigation and Inspection) |
(1) | Investigation or inspection of the Financial Services Commission under Article 65 (2) of the Act shall be limited to cases where the Minister of Land, Infrastructure and Transport makes a request with specific reasons why investigation or inspection is necessary. <Amended on Feb. 29, 2008; Dec. 31, 2008; Mar. 23, 2013> |
(2) | Where the Financial Services Commission conducts investigation or inspection pursuant to paragraph (1), it shall notify the Minister of Land, Infrastructure and Transport of the findings thereof without delay. In such cases, it may request correction if any matter to be corrected exits. <Amended on Feb. 29, 2008; Dec. 31, 2008; Mar. 23, 2013> |
[This Article Newly Inserted on Dec. 28, 2007]
Article 64 Deleted. <Feb. 11, 2016> |
Article 64-2 Deleted. <Aug. 4, 2016> |
Article 64-3 (Statement of Costs for Issuing Written Guarantees of Price Payment for Rental of Construction Machinery) |
(1) | The costs for issuing a written guarantee of price payment for rental construction machinery under Article 68-3 (3) of the Act shall be calculated in consideration of material costs, direct labor costs and expenditure described in the statement of the contract price calculation (including the statement of subcontract price calculation). In such cases, specific calculation methods shall be based on the standards determined and publicly announced by the Minister of Land, Infrastructure and Transport. |
(2) | A project owner may verify if the contractor or the subcontractor properly uses the costs referred to in Article 68-3 (3) of the Act for the relevant usage. In such cases, if deemed necessary, he or she may request the relevant contractor or subcontractor to submit evidential documents which state the spending details of such costs. |
(3) | Where the project owner verifies the spending details of the said costs submitted by the relevant contractor or subcontractor pursuant to paragraph (2), and finds out the amount specified in the statement of the contract price calculation under in Article 68-3 (3) of the Act is greater than that spent by the contractor or subcontractor, he or she may settle the difference between the former and the latter. |
(4) | "Public institution prescribed by Presidential Decree" in Article 68-3 (6) of the Act means any of the following institutions: <Newly Inserted on Aug. 4, 2016; Jun. 18, 2019> |
[This Article Newly Inserted on Jun. 17, 2013]
Article 64-4 (Review of Reasonableness of Rental Contracts for Tower Cranes) |
(1) | "Where the subcontract amount is short of the amount according to the proportion prescribed by Presidential Decree" in Article 68-4 (2) of the Act means any of the following cases: |
1. | Where the rental contract price for tower cranes falls short of 82/100 of the amount corresponding to the rent of tower cranes out of the contract amount of the contractor; |
2. | Where the rental contract amount for a tower crane falls short of 64/100 of the price estimated by the project owner with respect to the rent of tower cranes. |
(2) | Where the Minister of Land, Infrastructure and Transport reviews the appropriateness, etc. of a rental contract for tower cranes pursuant to Article 68-4 (2) of the Act, the Minister shall stipulate the reasonableness of the rental contract amount for tower cranes, the rental ability, and reliability of the tower crane lessor. |
(3) | Where a project owner intends to request a change of a tower crane lessor or of the details of a rental contract under Article 68-4 (3) of the Act, he or she shall do so in writing within 30 days after receipt of a notice of the rental contract for tower cranes under Article 68-4 (1) of the Act or the date he or she becomes aware that such ground exists. |
(5) | Matters necessary for the detailed standards for the examination of items under Article 68-4 (2) of the Act, such as the reasonableness of rental contracts for tower cranes, the procedures for the examination thereof, etc. shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport. |
[This Article Newly Inserted on Jun. 18, 2019]
CHAPTER VIII CONSTRUCTION DISPUTE CONCILIATION COMMITTEE
Article 65 (Functions of Committee) |
"Other disputes on matters prescribed by Presidential Decree" in Article 69 (3) 6 of the Act means the following: <Amended on May 27, 2010; Nov. 1, 2011; Feb. 18, 2020> 1. | A dispute between a contractor or subcontractor and a third person on the price of materials and the rent of construction machines; |
2. | A dispute on a transfer of the construction business; |
Article 66 (Application for Conciliation) |
Any person who intends to obtain outcomes from the conciliation of disputes under the subparagraphs of Article 69 (3) of the Act shall file a written application (including electronic documents) with the Construction Dispute Conciliation Committee (hereinafter referred to as the "Committee") under Article 69 (1) of the Act, specifying the purport of such application and the details of the case, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 17, 2004; Feb. 29, 2008; May 27, 2010; Nov. 1, 2011; Jul. 4, 2012; Mar. 23, 2013; Feb. 5, 2014>
Article 66-2 Deleted. <Nov. 14, 2014> |
Article 67 (Duties of Chairperson) |
(1) | The chairperson shall take charge of general affairs of, and represent the Committee. |
(2) | If the chairperson is unable to discharge his or her duties for inevitable causes, the vice chairperson shall act on behalf of him or her, and if both the chairperson and the vice chairperson are absent by accident, the member designated by the chairperson shall act on behalf of the chairperson. |
Article 68 (Members of Committee) |
(1) | Public officials who become Committee members pursuant to Article 70 (2) of the Act shall be the following persons, who are designated by the head of the relevant agency: <Amended on Dec. 31, 1998; Jun. 12, 2006; Dec. 28, 2007; Feb. 29, 2008; Jun. 5, 2008; Mar. 23, 2013; Feb. 5, 2014> |
1. | One public official of Grade III of the Ministry of Land, Infrastructure and Transport or one public official in general service belonging to the Senior Executive Service thereof; |
2. | One public official in Grade III of the Ministry of Economy and Finance, the Ministry of Government Legislation and the Fair Trade Commission respectively, or one public official in general service belonging to the Senior Executive Service of each of the aforementioned three organizations. |
(2) | Deleted. <Feb. 5, 2014> |
(3) | Deleted. <Nov. 14, 2014> |
Article 68-2 (Exclusion of, Challenge to, or Recusal of Members) |
(1) | Where a member of the Committee falls under any of the following cases, he or she shall be excluded from the performance of his or her duties: |
1. | Where a member or his or her current or ex-spouse becomes a party to the relevant dispute or is in the relationship of a joint rightful person or a responsible person with a party to the relevant dispute; |
2. | Where a member is or was of kinship with the party of the relevant dispute; |
3. | Where a member has made a statement or given an opinion on the relevant dispute; |
4. | Where a member participated or has participated in the relevant dispute as an agent of any party; |
5. | Where a member has participated in disposition or non-performance which caused the relevant dispute. |
(2) | Where a cause of exclusion arises, the Committee shall determine the exclusion ex officio or at the request of any party. |
(3) | Where there are circumstances that the fair execution of duties of a member is difficult to expect, the party may make an application for challenge of such member to the Committee and it shall determine the challenge when it deems the application for challenge proper. |
(4) | Where any ground provided for in paragraph (1) or (3) arises to a member, the member shall voluntarily evade from the performance of duties for such case. <Amended on Jul. 4, 2012> |
[This Article Newly Inserted on Dec. 28, 2007]
[Title Amended on Jul. 4, 2012]
Article 68-3 (Dismissal of Members) |
(1) | Where a member of the Committee referred to in Article 70 (2) of the Act falls under any of the following cases, the Minister of Land, Infrastructure and Transport may dismiss such member from his or her office: |
1. | Where he or she becomes incapable of carrying out his or her duties due to mental disability; |
2. | Where he or she commits any misdeed in connection with his or her duties; |
3. | Where he or she is deemed unsuitable for a member due to delinquency of duties, injury to dignity, or any other reason; |
4. | Where he or she fails to refrain himself or herself despite that he or she falls under a case set forth in any of the subparagraphs of Article 68-2 (1); |
5. | Where he or she expresses his or her intention of the difficulty for him or her to carry out his or her duties. |
(2) | A person who has designated a member under Article 68 (1) may withdraw the designation, when such member falls under any of the subparagraphs of paragraph (1). |
[This Article Newly Inserted on Dec. 31, 2015]
Article 69 (Request for Appraisal) |
(1) | If it is deemed necessary for examining the case for which a conciliation of a dispute is requested, the chairperson may request any appraisal, diagnosis, test, etc. to the relevant specialized institution. |
(2) | Any institution which is requested to make an appraisal, diagnosis, test, etc. under paragraph (1), shall submit the result thereof within 20 days after receiving a request. In such case, if there is any inevitable reason why it is impossible to submit such result within 20 days, it shall notify the Committee of the reason and the period for submission thereof. |
Article 69-2 Deleted. <Nov. 14, 2014> |
Article 70 (Procedures for Hearing Opinions) |
(1) | Where the Committee intends to allow the parties to dispute conciliation, persons interested in the dispute or related experts to attend its meeting and present their opinions, or intends to hear their opinions pursuant to Article 75 (2) of the Act, it shall notify them in writing seven days before the meeting is held. <Amended on Feb. 5, 2014> |
(2) | Where the parties to dispute conciliation, parties interested in the dispute or related experts who have received notification under paragraph (1) cannot attend a meeting of the Committee for inevitable circumstances, they may submit their opinions in writing (including electronic documents) beforehand. <Amended on Mar. 17, 2004; Feb. 5, 2014> |
(3) | Where a party to dispute conciliation, party interested in the dispute, or related expert who has received notification under paragraph (1) fails to attend a meeting without good cause, and to submit his or her opinion even in writing (including electronic documents), he or she shall be deemed to have waived his or her opportunity to state his or her opinion. <Amended on Mar. 17, 2004; Feb. 5, 2014> |
Article 71 (Conciliation Division) |
(1) | When the chairperson receives a request for conciliation under Article 66, he or she may, if necessary, refer a case for which a conciliation of dispute is requested to a conciliation division under Article 76 (1) of the Act. |
(2) | The provisions of Articles 69 and 70 shall be applicable mutatis mutandis to the affairs of the conciliation division as referred to in paragraph (1). |
Article 72 (Prepayment and Accurate Account of Expenses) |
(1) | Where the Committee intends to have the expenses required for dispute conciliation prepaid under Article 79 (2) of the Act, it shall notify it to the obligor for such payment in writing with the required expenses, particulars, and prepayment place and period fixed. |
(2) | Where the Committee has notified the prepayment of expenses under paragraph (1), if the obligor fails to prepay the expenses within the fixed period, the Committee may defer the conciliation on the dispute concerned. |
(3) | Where the Committee received expenses in advance under Article 79 (2) of the Act, the Committee shall prepare a statement of accounts concerning the prepaid amount and expenses as referred to in paragraph (1) and notify the requesting person of the statement within five days after the date when the Committee has prepared a proposal of conciliation on the dispute and presented such proposal to the party, or when it has notified the party of a refusal or suspension of conciliation. |
Article 73 (Scope of Expenses) |
The scope of expenses to be borne by a requesting person or a party of a dispute conciliation under Article 79 (1) of the Act shall be as follows: 1. | Expenses required for appraisal, diagnosis and test; |
2. | Expenses required for selection of witness and evidence; |
3. | Expenses required for inspection and investigation; |
4. | Other expenses required for conciliation, such as recording, stenographic record, interpretation, etc. |
Article 74 Deleted. <Dec. 28, 2007> |
Article 75 Deleted. <Dec. 28, 2007> |
Article 76 (Secretary and Clerks) |
(1) | A secretary and a clerk shall be appointed in the Committee in order to manage the affairs thereof. |
(2) | The Minister of Land, Infrastructure and Transport shall appoint a secretary and a clerk of the Committee from among public officials belonging to the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 5, 2014> |
Members and experts concerned who attend a meeting of the Committee may receive allowances within budget: Provided, That this shall not apply in cases where a member who is a public official attends the meeting in direct connection with affairs under his or her control.
Article 78 (Detailed Guidelines for Operation) |
Matters other than those prescribed by this Decree, which are necessary for the operation of the Committee, shall be determined by the chairperson through a decision of the Committee.
CHAPTER IX CORRECTIVE ORDER
Article 79 (Threshold of Penalty Points Subject to Imposition of Business Suspension) |
[This Article Newly Inserted on Jun. 18, 2019]
Article 79-2 (Cases of Temporarily Falling Short of Registration Standards) |
"Cases prescribed by Presidential Decree, such as temporarily falling short of the standards for registration" in the proviso of subparagraph 3 of Article 83 of the Act means any of the following cases: <Amended on Aug. 21, 2003; May 7, 2005; Mar. 29, 2006; Nov. 1, 2011; Feb. 11, 2016; Apr. 29, 2016; Jun. 30, 2016; Feb. 18, 2020; Aug. 3, 2021> 1. | Where the period which falls short of the registration standards, caused by death, disappearance, or retirement of a person who has the technological capability provided for in attached Table 2, does not exceed 50 days; |
1-2. | Where the registration standards are not met due to childcare leave (referring to the childcare leave provided in Article 19 of the Equal Employment Opportunity and Work-Family Balance Assistance Act) of a person who has the technical capability provided in attached Table 2: Provided, That it shall apply only to a business category which has at least two persons who meet the standard for technological capability, and only one person shall be recognized; |
1-4. | Where the standards for registration of an office are not met due to the change of the location of a place of business and each of the following is applicable: |
(a) | An application shall have been filed for changing matters stated in a construction business registration certificate or a construction business registration pocketbook under Article 9-2 (2) of the Act due to the change of the location of the place of business; |
(b) | An office shall have been moved again to a place meeting the standards for registration of an office under Article 13 (1) 2 and an application shall have been filed again for changing matters stated in a construction business registration certificate or a construction business registration pocketbook under Article 9-2 (2) of the Act within 30 days from the date of application for change under item (a); |
2. | Where the period which falls short of the registration standards, caused by a decrease in the total amount of assets of a corporation subject to application of the proviso of Article 542-8 (1) of the Commercial Act as of the end of its recent business year, does not exceed 50 days; |
3. | Where falling under any of the following items among the cases where the capital standards referred to in Article 13 (1) 1 has not met: |
(b) | Where deemed that there exists no hindrances in performing a rehabilitation plan, and the relevant constructor has been implementing such rehabilitation plan after receiving a decision on the closure of rehabilitation procedures from a court; |
(c) | Where a creditor financial institution council has made a resolution on the commencement of joint management procedures by the credit financial institution council under the Corporate Restructuring Promotion Act and such procedures are pending; |
(d) | Where the period which falls short of the capital standard does not exceed 50 days within one year from the date of registration of the construction business under Article 9 (1) of the Act: Provided, That cases where a constructor files for registration of an additional business category shall be excluded herefrom. |
[This Article Newly Inserted on Sep. 18, 2002]
Article 79-3 (Public Institutions Subject to Notification of Fact of Violations) |
"Public institutions prescribed by Presidential Decree" in Article 83-2 (3) of the Act means the following public institutions: <Amended on Nov. 1, 2009; Jun. 18, 2019> [This Article Newly Inserted on Dec. 28, 2007]
Article 80 (Standards for Suspension of Business or Imposition of Penalty Surcharges) |
(1) | A period of suspension of business or amount of a penalty surcharge depending on the category and degree of violations referred to in Article 84 of the Act shall be as stipulated in attached Table 6. |
(2) | The Minister of Land, Infrastructure and Transport may increase or decrease a period of suspension of business or an amount of a penalty surcharge pursuant to paragraph (1) within 1/2 of such period or amount, in consideration of the motives, details and frequency of the relevant violation, and characteristics and method of a tender for the construction related to such violation: Provided, That the Minister of Land, Infrastructure and Transport shall not decrease such period or amount where the relevant violations fall under Articles 82 (1) 3 and 82-2 (1) and (2) of the Act. <Amended on Dec. 28, 2007; Feb. 29, 2008; Nov. 1, 2011; Mar. 23, 2013> |
(3) | Where a period of suspension of business or an amount of a penalty surcharge is increased pursuant to paragraph (2), the total period of suspension of business or the total amount of a penalty surcharge shall not exceed the period and amount provided for in Articles 82, 82-2 and 83 of the Act. <Newly Inserted on Dec. 28, 2007; Nov. 1, 2011> |
Article 81 (Imposition and Payment of Penalty Surcharge) |
(1) | When the Minister of Land, Infrastructure and Transport intends to impose a penalty surcharge pursuant to Article 82 and 82-2 of the Act, he or she shall notify payment of such penalty surcharge with clearly stated classification of the act of violation and the amount of the penalty surcharge in writing. <Amended on Dec. 28, 2007; Feb. 29, 2008; Nov. 1, 2011; Mar. 23, 2013> |
(2) | A person who is notified of payment of a penalty surcharge under the provisions of paragraph (1) shall pay the penalty surcharge to a collection agency designated by the Minister of Land, Infrastructure and Transport within 20 days from the date of receipt of such notice: Provided, That when he or she is unable to pay such penalty surcharge within the specified period due to natural disasters or other inevitable reasons, he or she may pay the penalty surcharge within seven days from the date when such reasons cease to exist. <Amended on Dec. 28, 2007; Feb. 29, 2008; Mar. 23, 2013> |
(3) | A collection agency that collects a penalty surcharge pursuant to paragraph (2) shall issue a receipt to the payer. |
(4) | When a collection agency collects a penalty surcharge pursuant to paragraph (2), it shall notify the Minister of Land, Infrastructure and Transport thereof without delay. <Amended on Dec. 28, 2007; Feb. 29, 2008; Mar. 23, 2013> |
(5) | Deleted. <Sep. 24, 2021> |
[This Article Newly Inserted on Aug. 6, 1999]
Article 81-2 (Categories of Construction Business Allowed to Succeed to Position of Constructor) |
1. | Where a person whose registration of civil engineering business or construction business has been canceled files for registration of civil engineering and construction business; |
2. | Where a person whose registration of civil engineering and construction business has been canceled files for registration of civil engineering business or construction business. |
[This Article Newly Inserted on Nov. 27, 2012]
[Title Amended on Feb. 18, 2020]
Article 82 (Institutions Subject to Joint Ownership of Information) |
"Financial institutions or credit information agencies prescribed by Presidential Decree" in the former part of Article 85-3 (2) of the Act means the following: <Amended on Oct. 1, 2009; Nov. 15, 2010; Nov. 1, 2011> 1. | Mutual aid associations; |
[This Article Newly Inserted on Dec. 28, 2007]
CHAPTER X SUPPLEMENTARY PROVISIONS
Article 82-2 (Public Institutions Subject to Inspection and Confirmation) |
"Public institutions prescribed by Presidential Decree" in Article 86-2 of the Act means the following public institutions: <Amended on Nov. 1, 2011; Jun. 18, 2019> [This Article Newly Inserted on Jun. 30, 2005]
Article 82-3 (Cases Exempt from Publication of List of Habitually Late-Paying Constructors) |
"Cases where grounds prescribed by Presidential Decree exist, such as cases where the publication of a list is ineffective due to the declaration of death or unknown whereabouts of a constructor who habitually delays payments" in the proviso of Article 86-4 (1) of the Act means any of the following cases: <Amended on Feb. 18, 2020> 1. | Where the constructor who habitually delays payments (hereinafter referred to as "habitually late-paying constructor") under Article 86-4 (1) of the Act dies; |
3. | Where a habitually late-paying constructor settles the arrears before the end of the period for providing an explanation under Article 86-4 (3) of the Act; |
4. | Where the Minister of Land, Infrastructure and Transport deems that it is necessary to exclude habitually late-paying constructors from the publication of a list following further deliberation by the Deliberative Committee on the Publication of the List of Habitually Late-paying Constructors (hereinafter referred to as the "Deliberative Committee") under Article 86-4 (2) of the Act pursuant to Article 82-6 because he or she has paid part of the amount of delayed payments before the end of the period for providing an explanation under Article 86-4 (3) of the Act, and has explained a specific plan to settle the arrears and a plan to raise funds to the relevant Deliberative Committee; |
5. | Other cases where the Minister of Land, Infrastructure and Transport deems the publication of a list of habitually late-paying constructors ineffective, following deliberation by the Deliberative Committee. |
[This Article Newly Inserted on Nov. 14, 2014]
[Title Amended on Feb. 18, 2020]
Article 82-4 (Methods for Publication of List of Habitually Late-Paying Constructors) |
(1) | The list under Article 86-4 (1) of the Act shall be published in the Official Gazette, or on the website of the Ministry of Land, Infrastructure and Transport, or the Integrated Construction Industry Information Network for three years. |
1. | Name, age, firm name and address of a habitually late-paying constructor (in cases of a corporation, referring to the name, age and address of the representative of the corporation, and the name and address of the corporation); |
2. | History of measures taken against habitually late-paying constructors and details of the amount of delayed payments for the last three years from the year immediately preceding the publication of the list. |
[This Article Newly Inserted on Nov. 14, 2014]
[Title Amended on Feb. 18, 2020]
Article 82-5 (Composition and Operation of Deliberative Committee) |
(1) | The Deliberative Committee shall be comprised of not exceeding nine members, including one chairperson. |
(2) | The Vice Minister of Land, Infrastructure and Transport shall become the chairperson of the Deliberative Committee, and the following persons shall become members: |
1. | Not more than three persons appointed by the Minister of Land, Infrastructure and Transport, from among public officials in general service belonging to the Senior Executive Service of the Ministry of Land, Infrastructure and Transport; |
2. | Not more than five persons commissioned by the Minister of Land, Infrastructure and Transport, from among any of the following: |
(a) | A person who holds or held office in a university as an associate professor or higher ranking, or in a government-funded research institution as a senior researcher or higher ranking, who is specialized in the construction industry or financial field; |
(b) | A person qualified as an attorney-at-law; |
(c) | Other persons who have extensive knowledge of and experience in the construction industry or financial field, who have engaged in affairs in the relevant field for at least two years. |
(3) | The term of office of members commissioned by the Minister of land, Infrastructure and Transport pursuant to paragraph (2) 2 shall be three years: Provided, That the term of office of a member who fills a vacancy shall be the remainder of his or her predecessor's term. |
(4) | The chairperson of the Deliberative Committee shall preside over its affairs. |
(5) | Where the chairperson of the Deliberative Committee is unable to perform any of his or her duties due to inevitable circumstances, a member appointed by the chairperson shall perform his or her duties on his or her behalf. |
(6) | A majority of the members of the Deliberative Committee shall constitute a quorum, and any decision thereof shall require the concurring vote of at least a majority of those present. |
(7) | Except as provided in paragraphs (1) through (6), matters necessary for the organization and operation of the Deliberative Committee shall be determined by the Minister of Land, Infrastructure and Transport, following deliberation by the Deliberation Committee. |
[This Article Newly Inserted on Nov. 14, 2014]
Article 82-6 (Redeliberation on Publication of List of Habitually Late-Paying Constructors) |
Where a habitually late-paying constructor desires to give an explanation pursuant to Article 86-4 (3) of the Act, the Minister of Land, Infrastructure and Transport shall require the Deliberative Committee to redeliberate on whether to publish the list. <Amended on Feb. 18, 2020> [This Article Newly Inserted on Nov. 14, 2014]
[Title Amended on Feb. 18, 2020]
Article 82-7 (Exclusion of, Challenge to, or Recusal of Members) |
(1) | Where a member of the Deliberative Committee falls under any of the following, he or she shall be excluded from deliberation: |
1. | Where the member or his or her current or former spouse becomes a party interested (where the party interested is a corporation, organization, etc., its executive officer shall be included therein; hereafter the same shall apply in this Article) in the relevant matter, or is a joint obligee or a joint obligor with the party interested in the matter; |
2. | Where the member is or was a relative of a party interested in the relevant matter; |
3. | Where the member, or a corporation, organization, etc. to which he or she belongs is or was an agent of a party interested in the relevant matter. |
(2) | Where a party interested in the relevant matter is in a situation that it is difficult for him or her to expect a fair deliberation or decision from a member of the Deliberative Committee, he or she may file an application for challenge with the Deliberative Committee, and the Deliberative Committee shall determine whether to challenge the member. In such cases, the member subject to application for challenge shall not participate in such decision. |
(3) | Where a member of the Deliberative Committee constitutes grounds for exclusion under the subparagraphs of paragraphs (1), he or she shall voluntarily evade from all deliberation or decisions on the relevant matter. |
(4) | Where a member of the Deliberative Committee fails to evade from deliberation or decision notwithstanding the fact that he or she falls under any of the subparagraphs of paragraph (1), the Minister of Land, Infrastructure and Transport may dismiss the relevant member. |
[This Article Newly Inserted on Nov. 14, 2014]
Article 83 (Construction Works Subject to Joining Retirement Mutual Aid for Construction Workers) |
(1) | "Construction works prescribed by Presidential Decree" in Article 87 (1) of the Act means the following: <Amended on Aug. 6, 1999; Aug. 25, 2001; Aug. 21, 2003; Nov. 29, 2003; Mar. 8, 2005; May 7, 2005; Dec. 28, 2007; May 27, 2010; Nov. 1, 2011; Aug. 11, 2016; Sep. 8, 2020> |
1. | Construction works, the order for which is placed by the State or a local government and the estimated amount of which (referring to the estimated amount of relevant construction works in cases of the construction works, a contract for which is renewed every year based on a long-term contract referred to in Article 21 of the Act on Contracts to Which the State Is a Party; hereafter in subparagraph 2, the same shall apply) exceeds 100 million won; |
2. | Construction works ordered by the State or a local government, the estimated amount of which exceeds 100 million won; |
2-2. | Construction works, the order for which is placed by a corporation invested by a corporation under subparagraph 2 at least 50 percent of paid-in capital and the estimated amount of which exceeds 100 million won; |
5. | Construction works (including where construction plans have been approved pursuant to Article 15 of the Housing Act) of collective housing (referring to collective housing provided for in the Enforcement Decree of the Building Act) with at least 200 housing units and composite buildings (including a building connected to a number of buildings) with the purpose other than residence; |
7. | Construction works, the estimated amount of which exceeds five billion won. |
(2) | Parties to a contract agreement of construction works under Article 87 (2) of the Act shall calculate an amount of money required for joining the retirement pension system for construction workers and specify it in the statement of contract price calculation pursuant to the standards determined and publicly notified by the Minister of Land, Infrastructure and Transport. <Newly Inserted on Dec. 28, 2007; Feb. 29, 2008; Mar. 23, 2013> |
(3) | Where a contractor subcontracts construction works referred to in paragraph (1), he or she shall specify the amount required for the subscription for the retirement pension system for construction workers in the statement of subcontract price calculation of construction works corresponding to such subcontracted portion: Provided, That this shall not apply if the contractor enters into a mutual-aid contract in which the construction worker employed by the subcontractor is the person obtaining such mutual-aid pursuant to the former part of Article 10 (1) of the Act on the Employment Improvement of Construction Workers. <Amended on Aug. 21, 2003; May 7, 2005; Dec. 28, 2007> |
(4) | Any project owner under paragraph (1) 1, 2, 2-2, 4, 5, 6 or 7 or a person who has approved any construction plan under subparagraph 3, 5 or 7 of that paragraph (hereafter in this Article referred to as "project owner, etc.") may verify whether a constructor performing the relevant construction works has subscribed to the retirement pension system for construction workers under Article 87 (1) of the Act. <Amended on Dec. 31, 1998; Aug. 21, 2003; Dec. 28, 2007; May 27, 2010; Feb. 18, 2020> |
(5) | Where it is deemed necessary for verification under paragraph (4), the project owner, etc. may request the relevant constructor to submit a written verification of payment of mutual aid premiums to the Korean Construction Workers Mutual Fund: Provided, That where the project owner, etc. can verify the written verification of payment of mutual aid premiums through the Knowledge Information System of Construction, such verification may take the place of the presentation of the written verification. <Newly Inserted on Dec. 28, 2007; Feb. 18, 2020> |
(6) | Where the amount stated in the statement of the contract price calculation for construction works under Article 87 (2) of the Act exceeds the mutual-aid contribution actually paid by the constructor as a result of verifying the particulars of his or her payment, the project owner, etc. shall make an adjustment of the contract amount by the sum of excess. <Newly Inserted on Dec. 31, 1998; Aug. 6, 1999; Sep. 18, 2002; Dec. 28, 2007; Feb. 18, 2020> |
Article 83-2 (Training and Management of Construction Experts) |
(1) | When the Minister of Land, Infrastructure and Transport intends to formulate policies for training and management, etc. of construction experts pursuant to Article 87-2 (1) of the Act, he or she shall listen to the opinion of the head of a relevant central administrative agency. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
(2) | "Matters prescribed by Presidential Decree" in Article 87-2 (2) 4 of the Act means matters concerning the securing of funds required for training and management of construction experts and the establishment and designation of a specialized institute for training construction experts. |
(3) | Where the Minister of Land, Infrastructure and Transport makes a request for necessary data for training, management, etc. of construction experts pursuant to Article 87-2 (5) of the Act, he or she shall specify its purpose, use and deadline for presentation, etc. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
[This Article Newly Inserted on Dec. 28, 2007]
Article 83-3 (Management of Foreign Workers for Public Construction Works) |
1. | Data regarding the current status of employing foreign workers; |
3. | The following data regarding the foreign workers employed: |
[This Article Newly Inserted on Dec. 28, 2021]
Article 84 (Methods for Calculating of Wages Excluded from Object of Seizure) |
(1) | The amount equivalent to wages referred to in Article 88 (2) of the Act shall be calculated by summing up wages specified in the statement of the contract price for the relevant construction works. <Amended on Jan. 5, 2021> |
(2) | The project owner (including the contractor in cases of a subcontract) of a construction work shall specify the wages referred to in paragraph (1) in the contract or subcontract document. <Amended on Jan. 5, 2021> |
[Title Amended on Jan. 5, 2021]
Article 85 (Preferential Treatment to Acquirer of Technical Qualification) |
A constructor who employs a worker falling under professions of the technical qualification shall treat a person who has acquired the technical qualifications favorably pursuant to Article 14 (2) of the National Technical Qualifications Act and Article 27 (3) of the Enforcement Decree of that Act. <Amended on May 7, 2005; Dec. 28, 2007; Feb. 18, 2020>
Article 86 (Delegation of Authority) |
(1) | The Minister of Land, Infrastructure and Transport shall delegate the following authority with respect to constructors, etc. to Mayors/Do Governors pursuant to Article 91 (1) of the Act: <Amended on Dec. 31, 1998; Aug. 6, 1999; Sep. 18, 2002; Jun. 30, 2005; Dec. 28, 2007; Feb. 29, 2008; Nov. 1, 2011; Mar. 23, 2013; Nov. 14, 2014; Feb. 11, 2016; Aug. 4, 2016; Feb. 18, 2020; Dec. 28, 2021; Jul. 19, 2022> |
1. | Confirmation of the following items concerning a business category (excluding the categories of businesses determined and publicly announced by the Minister of Land, Infrastructure and Transport) of performing specialized construction works: |
(a) | Receipt of an application for registration of construction business and confirmation of details of the application under Article 9 of the Act; |
(b) | Receipt of an application for alteration of details in a construction business registration certificate or a construction business registration pocketbook and confirmation of details of the application under Article 9-2 of the Act; |
(c) | Receipt of an application for transfer of construction business, merger of corporations and succession of a corporation and confirmation of details of the application under Article 17 of the Act; |
2. | Registration of a construction business and receipt of a report on matters concerning the standards for registration of a construction business under Article 9 of the Act; |
3. | Delivery and re-delivery of a construction business registration certificate or a construction business registration booklet under the Article 9-2 of the Act; |
3-2. | Measures for compulsory removal, etc. of advertising articles against a person who violates the limit for a sign under Article 11 of the Act; |
4. | Receipt of a report on the transfer of a construction business, merger of corporations, and succession to a construction business under Article 17 of the Act; |
5. | Receipt of a report on the discontinuance of a construction business under Article 20-2 of the Act and the cancellation of registration of a construction business; |
6. | Deleted; <Dec. 28, 2007> |
7. | Deleted; <Aug. 6, 1999> |
8. | Orders or directions to make corrections under Article 81 of the Act (excluding orders or directions to make corrections under paragraph (2) 2); |
9-2. | Suspension of business, the imposition of a penalty surcharge or the cancellation of registration of a construction business under Article 82-2 of the Act; |
10-2. | Public announcement and notification of cancellation, etc. of registration of a construction business under Article 85-3 of the Act; |
12. | Imposition and collection of administrative fines under Article 101 of the Act (excluding the imposition and collection of administrative fines under paragraph (2) 3 of this Article and subparagraph 10 of Article 99 of the Act); |
12-2. | Additional registration of a main field of business under Article 7-2 (2), and cancellation of registration of a main field of business and entry of such cancellation under paragraph (4) of that Article; |
12-3. | Entry of matters regarding construction administration, such as registration of construction business, into the Knowledge Information System of Construction Industry and public announcement thereof under Articles 10 and 11; |
13. | Preparation and keeping of a register of a construction business under Article 12 (1); |
14. | Deleted. <Jun. 5, 2008> |
(2) | The Minister of Land, Infrastructure and Transport shall delegate the following authority over constructors to the head of a Regional Land Management Office pursuant to Article 91 (1) of the Act: <Newly Inserted on Nov. 14, 2014; Feb. 18, 2020> |
1. | Reporting, investigations and inspections to determine whether a subcontract under Article 49 (1) of the Act is appropriate, or is performed conscientiously; |
2. | Orders or directions to make corrections under subparagraph 9 of Article 81 of the Act (only where necessary to conduct affairs delegated pursuant to subparagraph 1); |
(3) | Deleted. <Dec. 28, 2007> |
Article 87 (Entrustment of Authority) |
(1) | In accordance with Article 91 (3) of the Act, the Minister of Land, Infrastructure and Transport shall entrust the following authority to institutions designated and publicly notified by the Minister of Land, Infrastructure and Transport under paragraph (2): <Amended on Sep. 18, 2002; Jun. 30, 2005; Dec. 28, 2007; Feb. 29, 2008; Jun. 5, 2008; Nov. 1, 2011; Mar. 23, 2013; Aug. 4, 2016; Jun. 18, 2019; Feb. 18, 2020; Oct. 8, 2020> |
1. | Confirmation of the following items concerning business categories of performing general construction works and specialized construction works determined and publicly notified by the Minister of Land, Infrastructure and Transport: |
(a) | Receipt of an application for registration of construction business and confirmation of details of the application under Article 9 of the Act; |
(b) | Receipt of an application for alteration of details in a construction business registration certificate or a construction business registration pocketbook and confirmation of details of the application under Article 9-2 of the Act; |
(c) | Receipt of an application for transfer of construction business, merger of corporations and succession of a corporation and confirmation of details of the application under Article 17 of the Act; |
2. | Appraisal and public announcement of constructors' execution capacity referred to in Article 23 (1) of the Act, receipt of performance records of construction works, etc. submitted pursuant to paragraph (3) of that Article, and confirmation of the details thereof, and request for submission of data for evaluation of the execution capacity referred to in paragraph (4) of that Article; |
3. | Evaluation and publication of the construction management capacity of a construction manager and the receipt of their construction management performance, etc. under Article 23-2 of the Act; |
4. | Construction and operation of the Knowledge Information System of Construction Industry and the request for the submission of data required for such systems under Article 24 of the Act; |
5-2. | Requests for the evaluation of employment of construction workers and the cooperation of relevant institutions provided in Article 48-2 (1) of the Act, and requests for submission of evaluation data provided in the former part of paragraph (2) of that Article; |
6. | Request for submission of data to ascertain whether a constructor meets the standards for registration, confirmation of the contents thereof, and confirmation of other matters that the Minister of Land, Infrastructure and Transport deems necessary in the course of a fact-finding survey on a constructor under Article 49 of the Act; |
8. | Entry of the limit of the amount of construction work in a registration pocketbook of construction business under Article 39 (4). |
(2) | Institutions entrusted with the authority upon designation by the Minister of Land, Infrastructure and Transport under paragraph (1) shall be the following institutions equipped with the workforce and equipment necessary to perform the entrusted affairs: <Amended on Sep. 18, 2002; May 7, 2005; Jun. 30, 2005; Dec. 28, 2007; Feb. 29, 2008; Aug. 26, 2008; Nov. 1, 2011; Mar. 23, 2013> |
2. | A mutual aid association; |
4. | A corporation incorporated with permission from the Minister of Land, Infrastructure and Transport pursuant to Article 32 of the Civil Act for activation of management of construction business; |
5. | Deleted; <Nov. 1, 2011> |
6. | A corporation incorporated with permission from the Minister of Land, Infrastructure and Transport under Article 32 of the Civil Act for the establishment and operation of the Knowledge Information System of Construction Industry; |
7. | A corporation incorporated with permission from the Minister of Land, Infrastructure and Transport under Article 32 of the Civil Act for the promotion of cooperation among organizations related to the construction business. |
(3) | Where the Minister of Land, Infrastructure and Transport designates any institution entrusted with the authority under paragraphs (1) and (2), he or she shall prescribe the details of the entrusted authority, methods of exercising such authority and other necessary matters and publicly notify them in the Official Gazette. <Amended on Sep. 18, 2002; Feb. 29, 2008; Mar. 23, 2013> |
(4) | Any institution entrusted with the authority to evaluate and publicly announce execution capacity under paragraph (1) 2 or the construction management capacity under subparagraph 3 of that paragraph shall notify the Minister of Land, Infrastructure and Transport of the results of processing the entrusted affairs within five days from the date of the public announcement. <Amended on Sep. 18, 2002; Feb. 29, 2008; Mar. 23, 2013; Oct. 8, 2020> |
(5) | Where the Minister of Land, Infrastructure and Transport deems it specifically necessary to smoothly exercise the authority entrusted under paragraphs (1) and (2), he or she may subsidize some of expenses incurred in exercising the entrusted authority within the budget. <Amended on Sep. 18, 2002; Feb. 29, 2008; Mar. 23, 2013> |
[This Article Wholly Amended on Aug. 6, 1999]
[Title Amended on Aug. 4, 2016]
Article 87-2 (Processing of Personally Identifiable Information) |
(a) | Receipt of applications for modification of entries in a certificate of registration of construction business or construction business pocket book and confirmation of the details of applications under Article 9-2 (2) of the Act; |
(b) | Re-issuance of a certificate of registration of construction business or construction business pocket book under Article 9-2 (3) of the Act; |
2-2. | Affairs concerning the education on construction business ethics and practice under Article 9-3 of the Act; |
3. | Affairs concerning the acceptance of reports on the transfer of construction business, corporate merger or inheritance under Article 17 of the Act; |
4. | Affairs concerning the acceptance of reports on the closure of construction business and the cancellation of registration of construction business under Article 20-2 of the Act; |
4-2. | Appraisal and public announcement of the execution capacity of a constructor under Article 23 of the Act; |
4-3. | Appraisal and public announcement of the construction management capacity of a construction manager under Article 23-2 of the Act; |
5. | Affairs concerning the total management of construction industry information under Article 24 of the Act; |
5-2. | Deleted; <Dec. 20, 2022> |
7. | Affairs concerning the formulation of policies concerning the training and management of construction professionals and requesting the submission of necessary data under Article 87-2 of the Act. |
[This Article Newly Inserted on Aug. 6, 2014]
[Previous Article 87-2 moved to Article 87-3 <Aug. 6, 2014>]
Article 87-3 (Re-Examination of Regulation) |
The Minister of Land, Infrastructure and Transport shall examine the appropriateness of the following matters every three years, counting from each base date specified in the following (referring to the period that ends on the day before the base date of every third year) and shall take measures, such as making improvements: <Amended on Nov. 14, 2014; Mar. 3, 2020; Mar. 2, 2021; Dec. 28, 2021; May 9, 2023>
1. | Standards for registration of construction business under Article 13 and attached Table 2: January 1, 2024; |
2. | Deleted; <Dec. 30, 2016> |
2-2. | Deleted; <Dec. 12, 2017> |
2-3. | Deleted; <Mar. 2, 2021> |
3. | Period of defect liability by type of construction works under Article 30 and attached Table 4: January 1, 2014; |
4. | Direct performance of construction works under Article 30-2: January 1, 2014; |
5. | Deleted; <Mar. 3, 2020> |
5-2. | Deleted; <Mar. 2, 2021> |
6. | Examination, etc. of the appropriateness of subcontracts under Article 34: January 1, 2014; |
6-2. | Types of unfair special-purpose agreements under Article 34-7: January 1, 2015; |
7. | Criteria, etc. for assigning construction engineers to construction sites under Article 35: January 1, 2022; |
8. | Deleted; <Mar. 3, 2020> |
9. | Deleted. <Mar. 3, 2020> |
[This Article Wholly Amended on Dec. 30, 2013]
[Moved from Article 87-2 <Aug. 6, 2014>]
CHAPTER XI PENALTY PROVISIONS
Article 88 (Scope of Main Facilities) |
"Facilities prescribed by Presidential Decree" in Article 93 (1) of the Act means any of the following facilities: <Amended on Nov. 29, 2003; Nov. 1, 2011; Aug. 11, 2016> 1. | Overpasses, underpasses, airstrips, cableways, dams, and the outer, harbor traffic and mooring facilities of the harbor facilities; |
2. | Airport building, station building, automobile passenger terminals, combined passenger facilities, general hospitals, shopping facilities, tourist accommodation facilities and audience assembly facilities, the total floor area of which is not less than 5,000 square meters; |
3. | Other buildings of 16 or more stories: Provided, That the collective housing as prescribed in subparagraph 3 of Article 2 of the Housing Act shall be excluded. |
Article 88-2 (Criteria for Penalty Points Subject to Imposition of Administrative Fines) |
"Threshold prescribed by Presidential Decree" in subparagraph 14 of Article 99 of the Act means five penalty points aggregated under Article 28 and attached Table 3. [This Article Newly Inserted on Jun. 18, 2019]
Article 89 (Criteria for Imposition of Administrative Fines) |
[This Article Wholly Amended on Apr. 14, 2011]
ADDENDUM <Presidential Decree No. 15433, Jun. 10, 1997>
Article 1 (Enforcement date)
This Decree shall enter into force on the date of its promulgation: Provided, That the provisions of Article 61 shall enter into force on July 1, 1998, and the provisions of Article 83, on January 1, 1998. Article 2 (Time Limit of Application on Criteria for License of Part of General Construction Business)
The provisions of Article 13 (1) 2 (a) on the issuance of a license for civil engineering business or construction business shall be applied until December 31, 1998. Article 3 (Repeal of Other Statutes or regulations)
The following Presidential Decrees shall be repealed, respectively:
1. | Enforcement Decree of the Construction Guarantee Act; |
2. | Enforcement Decree of the Korea Specialty Contractor Financial Cooperative Act. |
Article 4 (Transitional Measures on Existing Constructors)
(1) | Any person who obtained a license or made a registration for the construction business entered in the left column of the following table pursuant to relevant Statutes or regulations including the previous Construction Business Act, etc. before this Decree enters into force, shall be considered to have obtained a license or made a registration for the construction business entered in the right column of the same table.Construction business under the previous provisionsConstruction business under this DecreeLandscaping business which is special construction businessLandscaping business |
Structural steel installation business which is special construction businessStructural steel installation businessDredging business which is special construction businessDredging businessFacility construction business which is specialized construction businessMechanical construction businessElevator installation business which is specialized construction businessElevator installation business City gas facility construction business (class 1)Gas facility construction business (class 1)City gas facility construction business (class 2)Gas facility construction business (class 2)Liquified petroleum gas facility construction business (class 1)Gas facility construction business (class 2)City gas facility construction business (class 3)Gas facility construction business (class 3)Liquified petroleum gas facility construction business (class 2)Gas facility construction business (class 3)City gas facility construction business (class 4)Gas facility construction business (class 4)Liquified petroleum gas facility construction business (class 3)Gas facility construction business (class 4)City gas facility construction business (class 5)Gas facility construction business (class 5)Liquified petroleum gas facility construction business (class 4)Gas facility construction business (class 5)Ondol construction businessOndol construction business
(2) | Any person who obtained a license or made a registration for the construction business pursuant to the previous provisions at the time this Decree enters into force, but who fails to meet the criteria for a license or registration of the construction business under Articles 13 (1), 14 (2) and 16 (1), shall satisfy the requirements suitable for the criteria for a license or registration pursuant to this Decree and report it to a license or registration office of the construction business concerned, until December 31, 1997: Provided, That any person, being the previous special construction businessman, who obtained a license for a steel materials installation work business and dredging work business and who financed a construction mutual-aid association, shall be considered to have financed according to this Decree, notwithstanding the provisions of subparagraph 2 (d) of the remarks of the Table 2. |
(3) | Any constructor who may contract for works included in the contents of affairs of an industrial equipment work business and cableway installation work business pursuant to the previous provisions at the time when this Decree enters into force, may, notwithstanding the provisions of the attached Table 1 of this Decree, contract for works included in contents of the industrial equipment work business or cableway installation work business without license of either of such businesses, until December 31, 1997. |
Article 5 (Transitional Measures on Contents of Contract Agreement)
A written contract agreement which was entered into according to the previous provisions at time when this Decree enters into force, shall be considered to be suitable for this Decree, notwithstanding the revised provisions of Article 25 (1). Article 6 (Transitional Measures on Public Notice of Execution Capacity)
Before the execution capacity is appraised and publicly notified pursuant to Article 27 for the first time after this Decree enters into force, the limit amount of a contract decided and publicly notified pursuant to the previous provisions shall be considered to be the execution capacity appraised and publicly notified pursuant to this Decree. Article 7 (Transitional Measures on Term of Operating Member and Guarantee Affairs of Mutual-Aid Association)
(1) | Any operating member of each mutual-aid association appointed pursuant to Article 14 (2) 1 of the previous Construction Guarantee Act and subparagraph 1 of Article 11-2 of the Enforcement Decree of the Korea Specialty Contractor Financial Cooperative Act at the time when this Decree enters into force, shall be considered to have been appointed pursuant to Article 51 (2) 1, and notwithstanding paragraph (3) that Article, hold his qualification until the term of office expires pursuant to the previous provisions. |
(2) | All guarantee affairs which each mutual-aid association manages pursuant to the previous Construction Guarantee Act and Enforcement Decree thereof, and the previous Korea Specialty Contractor Financial Cooperative Act and Enforcement Decree thereof at the time when this Decree enters into force, shall be managed pursuant to the previous provisions, notwithstanding the provisions of Article 56, until the procedures of any alteration in the Articles of each mutual-aid association is concluded. |
Article 8 (Transitional Measures on Member of Construction Business Dispute Conciliation Committee)
Any member of the Construction Business Dispute Conciliation Committee pursuant to the previous provisions at the time when this Decree enters into force, shall be considered to be a member of the Central Construction Dispute Conciliation Committee pursuant to Article 68 (1) of this Decree. Article 9 Omitted.
Article 10 (Relation with Other Statutes or regulations)
In a case where other Statutes or regulations cite the Enforcement Decree of the Construction Guarantee Act, the Enforcement Decree of the Korea Specialty Contractor Financial Cooperative Act, or the provisions thereof at the time when this Decree enters into force, if this Decree includes the provisions corresponding to them, this Decree or the corresponding provisions of this Decree shall be considered to have been cited in lieu of the previous provisions.
ADDENDA <Presidential Decree No. 15581, Dec. 31, 1997>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 1998. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Presidential Decree No. 15598, Dec. 31, 1997>
This Decree shall enter into force on January 1, 1998.
ADDENDA <Presidential Decree No. 16063, Dec. 31, 1998>
(1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
(2) | (Transitional Measures concerning Adjustment of Category of Construction Business) A construction business entered in the left column of the following table registered pursuant to the previous provisions at the time this Decree enters into force shall be considered to be registered as a construction business entered in the right column of the same table.Construction business under the previous provisionsConstruction business under the provisions of this DecreeSpecific heat using equipment and apparatus installation business (class 1)Heating system installation business (class 1)Specific heat using equipment and apparatus installation business (class 2)Heating system installation business (class 1) Specific heat using equipment and apparatus installation business (class 3)Heating system installation business (class 2)Specific heat using equipment and apparatus installation business (class 4)Heating system installation business (class 2)Specific heat using equipment and apparatus installation business (class 5)Heating system installation business (class 3)Ondol construction businessHeating system installation business (class 2) |
ADDENDA <Presidential Decree No. 16512, Aug. 6, 1999>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Constructors)
(1) | Any person who is granted with a license or a registration of the construction business in the left column of the following table at the time of enforcing this Decree shall be deemed to be granted with the registration of the construction business in the right column of the same table.Construction business under the previous provisionsConstruction business under the provisions of this DecreeInterior construction businessInterior construction businessGas facility construction business (class 1)Gas facility construction business (class 1)Gas facility construction business (class 2)Gas facility construction business (class 1)Gas facility construction business (class 3)Gas facility construction business (class 1)Gas facility construction business (class 4)Gas facility construction business (class 2)Gas facility construction business (class 5)Gas facility construction business (class 3) |
(2) | Any person who holds the registration of the business of installing gas facilities (Class A through Class C) under the previous provisions at the time of enforcing this Decree and is found to be unfit for the registration of the construction business under the amended provisions of Articles 13 (1) and 16 (1), and the attached Table 2 shall satisfy requirements for registration standards prescribed by this Decree by December 31, 2000. |
Article 3 (Transitional Measures concerning Association and Mutual-Aid Association)
Any association or any mutual-aid association established pursuant to the previous provision at the time of enforcing this Decree shall be deemed to be established in conformity with the requirements as prescribed in the amended provisions of Article 49 or 53. Article 4 (Transitional Measures concerning Warranty Liability Period)
The warranty liability period for a construction work which is contracted at the time of enforcing this Decree shall be dealt with according to the previous provisions notwithstanding the amended provisions of the attached Table 4.
Article 5 (Transitional Measures concerning Posting of Construction Engineers in Site)
Any construction work which is contracted at the time of enforcing this Decree shall be dealt with according to the previous provisions notwithstanding the amended provision of the attached Table 5.
Article 6 Omitted.
ADDENDA <Presidential Decree No. 16514, Aug. 6, 1999>
Article 1 (Enforcement date)
This Decree shall enter into force on August 9, 1999.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 16790, Apr. 18, 2000>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 16798, May 1, 2000>
Article 1 (Enforcement date)
This Decree shall enter into force on May 1, 2000.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 17296, Jul. 7, 2001>
Article 1 (Enforcement date)
This Decree shall enter into force on July 8, 2001.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 17347, Aug. 25, 2001>
(1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 13 (1) 1-2 shall enter into force one month after the date of its promulgation. |
(2) | (Effective Period of Criteria for Construction Business Registration concerning Confirmation Note of Assumable Amount and Offices) The amended provisions of Article 13 (1) 1-2 concerning the confirmation note of assumable amount and those of the attached Table 2 concerning offices shall be valid not later than the date on which 3 years elapse from the enforcement date of this Decree. |
(3) | (Effective Period and Special Cases of Criteria for Construction Business Registration concerning Tree Growing Lands) The portion of tree growing lands of the landscape gardening business and landscape planting business from among the amended provisions concerning the facilities and equipment on the attached Table 2, shall be valid not later than December 31, 2005. In such case, notwithstanding the relevant amended provisions, any of the following classifications shall govern not later than December 31, 2004: |
1. | From the date of promulgation to December 31, 2001: 50,000 square meters or more of the tree growing lands; |
2. | From January 1, 2002 to December 31, 2002: 40,000 square meters or more of the tree growing lands; |
3. | From January 1, 2003 to December 31, 2003: 35,000 square meters or more of the tree growing lands; |
4. | From January 1, 2004 to December 31, 2004: 30,000 square meters or more of the tree growing lands. |
(4) | (Application Example to Construction Works Subject to Subscription for Retirement Benefits System for Construction Workers) The amended provisions of Article 83 (1) 1 and 2 shall apply from the construction works first ordered after the enforcement of this Decree. |
(5) | (Transitional Measures concerning Previous Constructors) The constructors who fall short of the amended provisions of the construction business registration criteria under Article 13 (1) 1-2 and the attached Table 2 at the time of enforcement of this Decree, shall meet the relevant amended provisions within 6 months from the enforcement date of this Decree. |
ADDENDA <Presidential Decree No. 17740, Sep. 18, 2002>
(1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
(2) | (Applicable Cases concerning Notification of Entries in Construction Work Book) The amended provisions of Article 26 shall apply to the construction works on which the contract agreement is concluded on or after January 1, 2003, on condition that such provisions shall, until December 31, 2003, apply to the construction works the amount of whose contract is at least three hundred million won. |
(3) | (Transitional Measures on Report of Matters concerning Standards for Construction Business Registration) Notwithstanding the amended provisions of Article 12-2, any constructor, for whom at least two years and six months have passed since the date his construction business was registered, at the time of enforcement of this Decree, shall make a report of matters concerning the standards for the construction business registration under Article 9 (4) of the Act within seven months from the enforcement date of this Decree. |
(4) | (Transitional Measures on Assignment of Construction Engineers to Construction Site) With respect to the construction works on which the contract agreement is concluded prior to the enforcement date of this Decree, the previous provisions shall apply, notwithstanding the amended provisions of the attached Table 5. |
ADDENDA <Presidential Decree No. 18092, Aug. 21, 2003>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 82 shall enter into force on September 1, 2003. Article 2 (Application Example concerning Work Subject to Subscription to Retirement Benefits System for Construction Workers)
The amended provisions of Article 83 (1) shall apply, starting with the work for which a bidding is published or approval for its project schedule is granted on or after January 1, 2004. Article 3 (Transitional Measures concerning Mandatory Employment of Current Career Officers)
Any person who has his general construction business registered at the time of enforcement of this Decree shall be governed by the previous provisions on or before December 31, 2003, notwithstanding the amended provisions of Article 13 (1) 6 and subparagraph 1 of Article 79-2. Article 4 (Transitional Measures concerning Composition of Operating Committee of Mutual-Aid Association)
Any mutual-aid association that is in conflict with the composition standards for the steering committee of the mutual-aid association under the amended provisions, with the exception of each subparagraph, of Article 51 (2) at the time of enforcement of this Decree shall make the total number of members of the steering committee, who are members of the mutual-aid association, not more than a half of the total number of the members of the mutual-aid association within 3 months from the date of enforcement of this Decree. Article 5 (Transitional Measures concerning Publication of Business Suspension or Registration Cancellation of Constructor)
The publication of the suspension of business or the cancellation of registration against any constructor shall be governed by the previous provisions on or before December 31, 2003, notwithstanding the amended provisions of Article 82. In this case, the publication may be also posted on the information and communication network in accordance with the amended provisions of that Article. Article 6 (Transitional Measures concerning Existing Constructor)
(1) | Any person who registers his construction business indicated on the left column of the following Table in accordance with the previous provisions at the time of enforcement of this Decree shall be deemed to register his construction business indicated on the right column of the same Table.Construction business under the previous provisionsConstruction business under the provisions of this Decree° Plastering, waterproofing business |
° Masonry businessPlastering, waterproofing, masonry business° Window construction business
° Metal construction business
° Greenhouse construction businessMetal structure, window construction business° Roofing work, sheet metal work business
° Building fabrication businessRoofing work, sheet metal work and building fabrication business
(2) | Any person who registers his construction business in accordance with the previous provisions and falls short of the standards for registering the construction business provided for in the amended provisions of the attached Table 2 at the time of enforcement of this Decree shall meet the requirements provided for in the amended provisions on or before December 31, 2004: Provided, That any person who falls short of the standards for facility and equipment from among the standards for the registration of railway and track work business shall meet the requirements provided for in the same amended provisions on or before December 31, 2003. |
(3) | In the event that any person who has his windows and doors work business registered under the previous provisions at the time of enforcement of this Decree registers his indoor construction work business on or before December 31, 2003, the previous record of his wooden windows and doors work shall be deemed the record of his indoor construction work business. |
ADDENDA <Presidential Decree No. 18146, Nov. 29, 2003>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 30, 2003. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDUM <Presidential Decree No. 18312, Mar. 17, 2004>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 18736, Mar. 8, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 18822, May 7, 2005>
(1) | (Enforcement Date) This Decree shall enter into force one month after the date of its promulgation. |
(2) | (Effective Period of Construction Business Registration Criteria for Offices) The amended provisions of the attached Table 2 on offices shall be effective not later than the date on which three years elapse from the enforcement date of this Decree. |
(3) | (Application Example of Confirmation Note of Warrantable Amount and of Construction Business Registration Criteria on Offices) The amended provisions of Article 13 (1) 1-2 and of the attached Table 2 shall apply starting from the portion of filing application for construction business registration first after enforcement of this Decree. |
(4) | (Transitional Measures concerning Previous Construction Business Operator) Construction business operators falling short of registration criteria for construction business under the amended provisions of Article 13 (1) 1-2 and of the attached Table 2 shall endeavor to satisfy the same amended provisions within six months from the enforcement date of this Decree. |
ADDENDA <Presidential Decree No. 18918, Jun. 30, 2005>
(1) | (Enforcement Date) This Decree shall enter into force on July 1, 2005: Provided, That the amended provisions of Articles 21 (1) 2, 26-2, 30-2, 34-2, items (a) 12 and (c) of attached Table 6, item (b) 1-2 of attached Table 6 and subparagraph 3-3 of attached Table 7 shall enter into force on January 1, 2006, and the amended provisions of Article 33 (1) and (2) and item (b) 7 of attached Table 6 shall enter into force on January 1, 2008. |
(2) | (Application Example to Scope of Incidental Works) The amended provisions of Article 21 (1) 2 shall apply starting from the portion of concluding the contract agreement first after this Decree enters into force. |
ADDENDUM <Presidential Decree No. 19139, Nov. 25, 2005>
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 36 and 37 shall enter into force on February 9, 2006, and the amended provisions of Article 13 (1) 4 shall enter into force on May 9, 2006.
ADDENDA <Presidential Decree No. 19422, Mar. 29, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 2006.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 19513, Jun. 12, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2006.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 20488, Dec. 28, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2008: Provided, That the amended provisions of Article 25 (1) 18 shall enter into force on January 28, 2008, the amended provisions of attached Table 2 (limited to Class A and Class B of heating installation business and items (e) and (f) of subparagraph 1 of remarks) shall enter into force on January 1, 2009. Article 2 (Applicability concerning Scope of Appurtenant Work)
The amended provisions of Article 21 (1) 2 shall apply to the first work (where a tender has not been publicly announced, referring to the first incidental works the contract for which has been entered into) a tender for which is publicly announced after this Decree enters into force. Article 3 (Applicability concerning Details of Contract for any Construction Work)
The amended provisions of Article 25 (1) 18 shall apply to the first appurtenant work the contract for which is entered into after January 28, 2008. Article 4 (Applicability concerning Details in Register of Construction Work)
The amended provisions of Article 26 (2) shall apply to the first construction work which has been subcontracted to a subcontractor by a contractor after this Decree enters into force. Article 5 (Applicability concerning Exemption from Notification of Plan for Direct Construction Work)
The amended provisions of the proviso of Article 30-2 (4) shall apply to the first appurtenant work the contract for which is entered into after this Decree enters into force. Article 6 (Applicability concerning Buildings used by Multitude)
Article 7 (Applicability concerning Construction Work subject to Joining Retirement Mutual Aid for Construction Workers)
The amended provisions of Article 83 (1) shall apply to the first construction work an application, etc., which falls under any of the following subparagraphs, of which is made after this Decree enters into force: 3. | A public announcement of a tender (the conclusion of a contract where a tender has not been publicly announced). |
Article 8 (Applicability concerning Category of Construction Business and Details of Business by Category of Business)
The amended provisions of attached Table 1 shall apply beginning from the first construction work a tender for which is publicly announced (referring to the first construction work a contract for which is entered into where a tender is not publicly announced) after this Decree enters into force.
Article 9 (Applicability concerning Standards for Registration of Construction Business)
The amended provisions of attached Table 2 concerning underwater construction business shall apply beginning from the first underwater construction business an application for registration of which is made after this Decree enters into force.
Article 10 (Special Cases concerning Restrictions on Concurrent Office)
Article 11 (Transitional Measures concerning Reasons of Disqualifications for Member of Operating Committee)
Despite the amended provisions of Article 52 (1) 3 and 5, the previous provisions shall apply to grounds for disqualifications for a person elected as a member of the Operating Committee before this Decree enters into force. Article 12 (Transitional Measures concerning Registration of Construction Business)
A person who has registered a general construction business or a specialized construction business before this Decree enters into force shall be deemed that he or she has registered a construction business of the relevant business category under the amended provisions of attached Table 1.
Article 13 (Transitional Measures concerning Standards for Registration of Construction Business)
(1) | A person, as a person who has registered a underwater construction business before this Decree enters into force, who has failed to meet the registration standards under the amended provisions (limited to a underwater construction business) of attached Table 2 shall make himself or herself suitable to the amended provisions (limited to a underwater construction business) of the same Table by December 31, 2008: Provided, That the same shall not apply to cases where a person who has registered a underwater construction business before this Decree enters into force has technical ability under subparagraph 1 (f) of Remarks in attached Table 2. |
(2) | A person who has registered a railroad track construction business, and a heating installation business Class A and Class B before this Decree enters into force shall be deemed that he or she meets the standards for registration despite the amended provisions of attached Table 2 (limited to a heating installation business Class A and Class B and subparagraph 1 (e) of Remarks). |
Article 14 (Transitional Measures concerning Maintenance Period)
Despite the amended provisions of attached Table 4, the previous provisions shall apply to the maintenance period of the construction work for which a contract has been entered into before this Decree enters into force.
Article 15 (Transitional Measures concerning Posting of Construction Engineers at Job Site)
Despite the amended provisions of attached Table 5, the previous provisions shall apply to construction engineers to be posted at a job site of the construction work for which a contract has been entered into before this Decree enters into force.
Article 16 (Transitional Measures concerning Administrative Disposition and Administrative Fine)
The Previous provisions shall apply to the administrative disposition (including the disposition of imposition of a penalty surcharge) and an administrative fine against acts of violation before this Decree enters into force.
ADDENDUM <Presidential Decree No. 20506, Dec. 31, 2007>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 20722, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 20791, May 26, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 20805, Jun. 5, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 86 (1) 14 and 87 (1) 8 shall enter into force on September 22, 2008 and the amended provisions of attached Table 2 concerning offices shall enter into force on June 8, 2008. Article 2 (Effective Period of Standards for Registration of Construction Business concerning Office)
The amended provisions of attached Table 2 concerning offices shall be in force until the date when three years have passed from the date of enforcement of this Decree.
Article 3 (Transitional Measures concerning Administrative Disposition)
The previous provisions shall apply to the administrative disposition (including the disposition of imposition of a penalty surcharge) against acts of violation before this Decree enters into force.
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Decree)
This Decree shall enter into force on February 4, 2009. (Proviso Omitted.)
Articles 2 through 28 Omitted.
ADDENDA <Presidential Decree No. 20977, Aug. 26, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 28, 2008.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 21098, Oct. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 21214, Dec. 31, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 21233, Dec. 31, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 25 (1) shall enter into force on the date of its promulgation. Article 2 (Applicability)
The amended provisions of Article 35 (3) and attached Table 5 shall apply to the first tender (where a tender has not been publicly announced, referring to the first appurtenant work a contract for which has been entered into) for which is publicly announced after this Decree enters into force.
ADDENDUM <Presidential Decree No. 21626, Jul. 7, 2009>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 21765, Oct. 1, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 21819, Nov. 10, 2009>
This Decree shall enter into force three months after the date of its promulgation.
ADDENDA <Presidential Decree No. 22173, May 27, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 30, 2010: Provided, That the amended provisions of Article 57 (1) shall enter into force on the date of its promulgation, and the amended provisions of Article 83 (1) shall enter into force on September 30, 2010. Article 2 (Applicability)
The amended provisions of Article 83 (1) shall apply from the first announcement of a tender (referring to the conclusion of the first contract if no tender is publicly announced) after the amended provisions of Article 83 (1) enter into force under the proviso of Article 1 of the Addenda. Article 3 (Transitional Measures)
An administrative disposition (including the disposition of imposition of a penalty surcharge) and an administrative fine for a violation committed before this Decree enters into force shall be governed by the previous provisions.
ADDENDA <Presidential Decree No. 22269, Jul. 12, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 22303, Jul. 26, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Presidential Decree No. 22493, Nov. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 18, 2010.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 22903, Apr. 14, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Administrative Fines)
(1) | Standards for imposition of administrative fine on violations committed before this Decree enters into force shall be governed by the previous provisions, notwithstanding the amended provisions of Article 89 and attached Table 7. |
(2) | The disposition of an administrative fine imposed on violations committed before this Decree enters into force shall be disregarded for the purposes of counting violations referred to in the amended provisions of attached Table 7. |
ADDENDA <Presidential Decree No. 23282, Nov. 1, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 25, 2011: Provided, That the amended provisions of Articles 13 (limited to the parts concerning the amended provisions of Article 82-2 (3) and subparagraphs 8 and 13 of Article 83 of the Act), 19, 20, 21, 32, 34-4 (limited to the parts concerning the amended provisions of Article 38-2 (2) and (3) of the Act), 56, 60, 64-2, 79-3, 80 (limited to the parts concerning the amended provisions of Article 82-2 of the Act), 81 and 86 (1) 9-2, subparagraphs 1 (e), 2 (c) through (g) and 3 of attached Table 6, and subparagraphs 2 (f) and (g) of attached Table 7 shall enter into force on May 25, 2012, the amended provisions of Articles 86 (1) 1 and 87 (1) 1 shall enter into force six months after the date of its promulgation, and the standards for office space from among the amended provisions of attached Table 2 shall enter into force on the date of its promulgation. Article 2 (Applicability to Exceptions to Qualifications for Execution and Direct Execution of Construction Works)
The amended provisions of Articles 19, 20 and 30-2 shall apply from the first announcement of a tender for construction works (referring to the conclusion of the first contract if no tender is publicly announced) after this Decree enters into force. Article 3 (Applicability to Subcontract Inspection Committee and Contents of Construction Business)
The amended provisions of Article 34 (5) through (9) and subparagraph 1 of remarks of attached Table 1 shall apply from the first conclusion of a contract or a subcontract after this Decree enters into force. Article 4 (Applicability to Temporary Failure to Comply with Registration Standards)
The amended provisions of subparagraph 3 (b) of Article 79-2 shall also apply to a receipt of a decision on the closure of rehabilitation procedures from a court before this Decree enters into force. Article 5 (Applicability to Standards for Registration of Construction Business)
A person who has registered for construction business before this Decree enters into force and fall short of standards for registration referred to in the amended provisions of attached Table 2 (limited to the parts concerning office space; hereinafter the same shall apply) shall comply with the said amended provisions of the same Table by December 31, 2011.
Article 6 Omitted.
ADDENDA <Presidential Decree No. 23356, Dec. 8, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 8, 2011. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 23583, Feb. 2, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 5, 2012: Provided, That the amended provisions of subparagraph 1 (j) of remarks of attached Table 2 shall enter into force on January 1, 2013.
Article 2 (Applicability to Buildings subject to Restrictions on Builders)
Article 3 (Transitional Measures concerning Buildings Not Subject to Restrictions on Builders)
ADDENDA <Presidential Decree No. 23869, Jun. 21, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability)
The amended provisions of subparagraph 1 of Article 19, subparagraph 1 of Article 20 and Article 30-2 (3) shall apply from the first announcement of a tender for construction works (referring to the conclusion of the first contract if no tender is publicly announced) after this Decree enters into force.
ADDENDUM <Presidential Decree No. 23928, Jul. 4, 2012>
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 24155, Oct. 29, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 1, 2012. (Proviso Omitted.)
Articles 3 through 11 Omitted.
ADDENDA <Presidential Decree No. 24204, Nov. 27, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 2, 2012.
Article 2 (Applicability to Inspections of Propriety of Subcontracts)
The amended provisions of Article 34 (1) 2 shall apply from the conclusion of the first subcontract after this Decree enters into force. Article 3 (Applicability to Types of Unfair Special Agreements)
The amended provisions of subparagraphs 2 and 7 of Article 34-6 shall apply from the conclusion of the first subcontract after this Decree enters into force. Article 4 (Transitional Measures concerning Administrative Dispositions)
An administrative disposition (including the disposition of imposition of a penalty surcharge) for a violation committed before this Decree enters into force shall be governed by the previous provisions.
ADDENDA <Presidential Decree No. 24443, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 24616, Jun. 17, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 19, 2013.
Article 2 (Applicability to Statement of Costs for Issuing Written Guarantees of Price Payment for Rental of Construction Machinery)
The amended provisions of Article 64-3 shall apply from the conclusion of the first contract (including a subcontract) of construction works after this Decree enters into force.
ADDENDUM <Presidential Decree No. 25050, Dec. 30, 2013>
This Decree shall enter into force on January 1, 2014. (Proviso Omitted.)
ADDENDUM <Presidential Decree No. 25152, Feb. 5, 2014>
This Decree shall enter into force on February 7, 2014.
ADDENDA <Presidential Decree No. 25273, Mar. 24, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 25358, May 22, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 23, 2014.
Articles 2 through 13 Omitted.
ADDENDUM <Presidential Decree No. 25532, Aug. 6, 2014>
This Decree shall enter into force on August 7, 2014.
ADDENDA <Presidential Decree No. 25727, Nov. 14, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 15, 2014.
Article 2 (Applicability to Range of Public Institutions)
The amended provisions of Article 34-5 (only where a project owner directly pays the subcontract price equivalent to the part a subcontractor has performed pursuant to Article 35 (1) 1 of the Act to the subcontractor) shall apply, beginning with cases where the project owner enters into the first general contract with a prime contractor after this Decree enters into force. Article 3 (Transitional Measures concerning Delegation of Authority)
Notwithstanding the amended provisions of Article 86 (1) and (2), the previous provisions shall apply where the Minister of Land, Infrastructure and Transport imposed administrative fines under Article 101 of the Act before this Act enters into force.
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 26517, Sep. 11, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 12, 2015. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDUM <Presidential Decree No. 26844, Dec. 31, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 26979, Feb. 11, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 12, 2016: Provided, That the amended provisions of Article 30 shall enter into force on August 12, 2016. Articles 2 (Applicability to Suspension of Business, etc. Caused by Falling Short of Standards for Registration of Construction Business)
The amended provisions of Article 79-2 shall also apply to cases where an order for suspension of business is issued or cancellation of registration is made under subparagraph 3 of Article 83 of the Act against a violation committed before this Decree enters into force. Article 3 (Transitional Measures concerning Mitigation of Period, etc. of Business Suspension)
Notwithstanding the amended provisions of the part other than subparagraph 1 (c) (i) through (iii) of attached Table 6 and the amended provisions of (iii) of said item, a violation committed before this Decree enters into force shall be governed by the previous provisions.
ADDENDA <Presidential Decree No. 27115, Apr. 29, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 27299, Jun. 30, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2016. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDUM <Presidential Decree No. 27440, Aug. 4, 2016>
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 56 (3) 6, 64-2 and subparagraph 2 (a) (xiv) i of attached Table 6 shall enter into force on February 4, 2017; and the amended provisions of Articles 12-2, 45 (3) through (5), 86 (1) 1 (a), and 87 (1) 1 (a) and (6) on February 4, 2018.
ADDENDA <Presidential Decree No. 27444, Aug. 11, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 12, 2016.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 27751, Dec. 30, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2017. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Presidential Decree No. 27792, Jan. 17, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 28, 2017.
Articles 2 through 7 Omitted.
ADDENDUM <Presidential Decree No. 27960, Mar. 27, 2017>
This Decree shall enter into force on March 30, 2017. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 28211, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 28325, Sep. 19, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 22, 2017: Provided, the amended provisions of Table 1 and 2 shall enter into force on January 1, 2018.
Article 2 (Transitional Measures on Plastering, Waterproofing, Masonry Business Entities)
Any person who has registered plastering, waterproofing, masonry business in accordance with the previous Table 2 before this Decree enters into force shall be deemed to have registered wet business or waterproofing business.
Article 3 (Transitional Measures concerning Administrative Disposition)
(1) | In applying criteria of administrative dispositions against violations committed before this Decree enters into force, the previous provisions shall apply, notwithstanding the amended provisions of subparagraph 2 (a) (xiv) b of Table 6. |
(2) | In applying criteria of administrative dispositions against violations committed after this Decree enters into force, the administrative dispositions taken pursuant to subparagraph 2 (a) (xiv) b of the previous Table 6 before this Decree enters into force shall be deemed the administrative dispositions taken against violations pursuant to subparagraph 2 (a) (xiv) b of the previous Table 6 when counting the number of violations. |
ADDENDA <Presidential Decree No. 28471, Dec. 12, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2018.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 29006, Jun. 26, 2018>
This Decree shall enter into force on June 27, 2018.
ADDENDA <Presidential Decree No. 29086, Aug. 7, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Application of Criteria for Administrative Dispositions)
(1) | Notwithstanding the amended provisions of subparagraph 2 (a) (xiv) j of attached Table 6, the previous provisions shall apply in applying the criteria for administrative dispositions to a violation committed before this Decree enters into force. |
(2) | Where the criteria for administrative dispositions are to be applied to a violation committed after this Decree enters into force, the administrative dispositions imposed for violations committed before this Decree enters into force under the previous provisions of subparagraph 2 (a) (xiv) j of attached Table 6 shall be deemed to be administrative dispositions imposed for violations under the amended provisions of subparagraph 2 (a) (xiv) j of attached Table 6 in counting the number of violations. |
ADDENDA <Presidential Decree No. 29163, Sep. 18, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 21, 2018.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 29269, Oct. 30, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 1, 2018.
Articles 2 through 11 Omitted.
ADDENDA <Presidential Decree No. 29415, Dec. 24, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Metal Structures and Window Construction Business Entities)
A person who filed for registration of metal structure or window construction business under the previous attached Table 2 before this Decree enters into force shall be deemed to have filed for registration of metal structure, window, or greenhouse construction business under the amended provisions of attached Table 2.
ADDENDA <Presidential Decree No. 29665, Mar. 26, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Direct Execution of Construction Works and On-site Deployment of Construction Engineers)
The amended provisions of Articles 30-2 and 35 (3) shall begin to apply to cases where a public announcement of tender for construction works (referring to cases where a contract for work is entered into where no tender is publicly announced) is made after this Decree enters into force. Articles 3 (Applicability to Appropriateness Evaluation of Subcontract Agreement)
The amended provisions of Article 34 (1) 2 shall begin to apply to cases where a subcontract is entered into after this Decree enters into force.
ADDENDA <Presidential Decree No. 29877, Jun. 18, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 19, 2019: Provided, That the amended provisions of Articles 26-3, 34-3, subparagraph 2 (g) and (n) of attached Table 7 shall enter into force on July 1, 2019. Article 2 (Applicability to Standards for Registration of Construction Business)
The amended provisions of Article 13 (1) 1-2 and attached Table 2 shall also apply to a person who files for registration of construction business or files an application for registration of construction business before this Decree enters into force: Provided, That until December 31, 2018, the previous provisions shall apply, notwithstanding the amended provisions of Article 13 (1) 1-2 and attached Table 2 when determining whether a person registered for construction business before December 31, 2018 fails to meet the standards for registration.
ADDENDA <Presidential Decree No. 30256, Dec. 24, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 16, 2020. (Proviso Omitted.)
Articles 2 through 33 Omitted.
ADDENDA <Presidential Decree No. 30423, Feb. 18, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Scope of Public Institutions)
Article 3 (Applicability to Temporary Nonconformance to Standards for Registration)
The amended provisions of subparagraph 1-3 of Article 79-2 shall begin to apply to an application for change of matters stated in a construction business registration certificate or a construction business registration pocketbook under Article 9-2 (2) of the Act due to change of business places after this Decree enters into force. Article 4 (Applicability to Suspension of Business and Criteria for Imposition of Penalty Surcharges)
(1) | The amended provisions of subparagraph 1 (c) of attached Table 6 shall begin to apply to cases where a disposition suspending business or imposing penalty surcharges is made for a violation committed after this Decree enters into force. |
(2) | The fact that a person has violated the duty of constructors referred to in Article 22 (7), 34, 36 (1), 37, 38 (1) and (2) or 68-3 (1) of the Act before this Decree enters into force shall not be included where he or she is discovered to commit the same violation within two years pursuant to the amended provisions of subparagraph 1 (c) of attached Table 6. |
(3) | The amended provisions of subparagraph 2 (a) of attached Table 6 shall also apply to cases where a disposition suspending business or imposing a penalty surcharge is made against a violation committed before this Decree enters into force. |
Article 5 Omitted.
ADDENDUM <Presidential Decree No. 30509, Mar. 3, 2020>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 30893, Aug. 4, 2020>
Article 1 (Enforcement Date)
(1) | This Decree shall enter into force on August 5, 2020. (Proviso Omitted.) |
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 31006, Sep. 8, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 27, 2020: Provided, That the amended provisions of Article 83 (1) shall enter into force on the date of its promulgation. Article 2 (Application Example concerning Construction Works Subject to Subscription to Retirement Benefits System for Construction Workers)
The amended provisions of Article 83 (1) shall begin to apply to cases where a tender for construction works is publicly announced (referring to cases where a contract for work is entered into where no tender is publicly announced) after the enforcement date provided in the proviso of Article 1 of the Addenda.
ADDENDA <Presidential Decree No. 31102, Oct. 8, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 8, 2020: Provided, That the following matters shall enter into force on the following dates:
1. | The amended provisions of Articles 12-4 (2) and 34-5, subparagraph 1 of the remarks of attached Table 5, and subparagraph 1 (e) and (g) of attached Table 6: Date of promulgation; |
2. | The amended provisions of Articles 19 through 21, 31 (3), 31-2, 32 (1), 34 (3), 34-3 (2), subparagraph 1-2 of the remarks of attached Table 1, subparagraph 2 (a) of attached Table 3-2, subparagraph 6 of the remarks of attached Table 5, subparagraph 2 (a) and (b) of attached Table 6 of this Decree and subparagraph 2 (k) of attached Table 7 of the partially amended Enforcement Decree of the Framework Act on the Construction Industry (Enforcement Decree No. 31006) shall enter into force as follows: |
(b) | Construction works ordered by a person other than those falling under item (a): January 1, 2022; |
3. | The amended provisions of subparagraph 2 (e) and (f) of attached Table 3-2: December 19, 2021. |
Article 2 (Applicability to Invoicing and Receiving Payment for Subcontracts through E-Procurement System)
The amended provisions of Article 34-5 (1) shall begin to apply to cases where a contract for construction works is entered into on or after the enforcement date provided in subparagraph 1 of Article 1 of the Addenda. Article 3 (Transitional Measures concerning Qualifications for Performing Construction Works)
Notwithstanding the amended provisions of Articles 19 through 21, the previous provisions shall apply to the qualifications for performing construction works for which a a tender is publicly announced (referring to cases where a contract for work is entered into where no tender is publicly announced) before the enforcement date prescribed in subparagraph 2 of Article 1 of the Addenda. Article 4 (Transitional Measures concerning Subcontracts of Construction Works)
Notwithstanding the amended provisions of Articles 31 (3) and 31-2, and subparagraph 1-2 of the remarks in attached Table 1, the previous provisions shall apply to subcontracts of construction works for which a a tender is publicly announced (referring to cases where a contract for work is entered into where no tender is publicly announced) before the enforcement date prescribed in subparagraph 2 of Article 1 of the Addenda.
ADDENDA <Presidential Decree No. 31222, Dec. 8, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 10, 2020.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 31328, Jun. 29, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2022. (Proviso Omitted.)
Article 2 (Effective Period of Maintenance and Management Business of Structures)
The amended provisions of subparagraph 2 (o) of attached Table 1 and subparagraph 2 (o) of attached Table 2 shall remain effective until December 31, 2023.
Article 3 (Applicability to Contracts for Construction Works)
The amended provisions of attached Tables 1 and 2 shall begin to apply construction works for which the announcement of tender (referring to cases where a contract for work is entered into where no tender is publicly announced; hereafter in this Article the same shall apply) is made after this Decree enters into force: Provided, That the amended provisions of the main clause of subparagraph 4 of the remarks of attached Table 1 shall begin to apply to construction works for which a public announcement of tender is made on or after January 1, 2023, with respect to construction works ordered by a person other than the State, a local government, a public corporation or quasi-governmental institution under Article 5 of the Act on the Management of Public Institutions, or a local public corporation or local public agency under Articles 49 and 76 of the Local Public Enterprises Act. Article 4 (Applicability to Disposition Suspending Business for Types of Business Performing Specialized Construction Works)
A person who was issued with a disposition suspending business under Articles 82, 82-2, and 83 before this Decree enters into force (referring to the date the conversion is registered under Article 7 of the Addenda in cases of a maintenance and management business of structures; hereafter in this Article the same shall apply) shall be deemed to have been issued with a disposition suspending business for a type of business (hereafter in this Article referred to as “integrated type of business”) performing specialized construction works under the amended provisions of attached Table 1, which was converted or registered under Articles 6 through 8 of the Addenda: Provided, That if a constructor, who has at least two main fields of business registered under Articles 6 through 8 of the Addenda in the integrated type of business, was issued with a disposition suspending business before this Decree enters into force (limited to cases where the constructor did not receive a disposition suspending business for at least one type of business) and if the suspension of business was in effect as at the time this Decree enters into force, the constructor may perform constructions works belonging to the integrated type of business, except for construction works that falls within the type of business subject to the disposition suspending business. [This Article Newly Inserted on Dec. 28, 2021]
[Previous Article 4 moved to Article 5 <Dec. 28, 2021>]
Article 5 (Pilot Projects)
[Moved from Article 4; previous Article 5 moved to Article 6 <Dec. 28, 2021>]
Article 6 (Preparations and Special Cases concerning Conversion of Types of Business for Scaffolding and Structure Demolition Businesses)
(1) | A person, who filed for registration of a scaffolding and structure demolition business before this Decree enters into force, may convert his or her business into a site preparation or pavement business, out of business categories that perform specialized construction works under the amended provisions of attached Table 1 according to the following classifications, and may apply for registration thereof with the Minister of Land, Infrastructure and Transport (including persons who are delegated or entrusted with the authorities and duties regarding the registration of construction business referred to in Article 9 of the Act under Article 91 of the Act and Articles 86 and 87 of this Decree; hereinafter referred to as "construction business registration authority"), or may apply to additionally register a site preparation and pavement business before this Decree enters into force. |
1. | Where it is allowed to convert into a site preparation and pavement business and register it accordingly: If he or she intends to file for registration of boring, grouting, or piling works out of business fields of site preparation and pavement works as a his or her main field of business under the amended provisions of attached Table 1; |
2. | Where it is allowed to file for additional registration of a site preparation and pavement business: If the sum of contract prices for piling works and that of scaffolding and structure demolition works he or she performed from 2018 to 2020 is at least 300 million won, respectively. |
(2) | If he or she converts his or her business into a site preparation and pavement business under paragraph (1) and applies for registration thereof, he or she shall be deemed to be applying for the registration of boring, grouting, and piling works as his or her main field of business; and if he or she applies to additionally register a site preparation or pavement business, he or she shall be deemed to be applying for the registration of boring, grouting, and piling works, and structure demolition and scaffolding works as his or her main field of business; |
(3) | Where a constructor, who applies for registration after converting the type of his or her business or applies for additional registration under paragraphs (1) and (2), meets the following standards, the construction business registration authority shall register the site preparation and pavement business by deeming that he or she meets the standards for registration under the amended provisions of attached Table 2. In such cases, a person who files for registration of a site preparation and pavement business shall meet the standards for registration under the amended provisions of attached Table 2 with regard to the relevant type of construction business by December 31, 2024. |
Technological Capability | Facilities | Capital | At least two persons out of construction engineers of junior grade or higher in the field of civil engineering, architectural engineering, or mining (limited to the field of managing chemicals) under the Construction Technology Promotion Act or out of those who have obtained technical qualifications in relevant categories under the National Technical Qualifications Act | Office | KRW 150 millions |
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(4) | The appraised value of execution capacity of a scaffolding and structure demolition business previously published pursuant to Article 23 of the Act may be recognized as the appraised value of execution capacity of a constructor who has filed for registration of a site preparation and pavement business under paragraph (3). |
(5) | A constructor who has neither converted the type of his or her business nor filed for registration of another business category under paragraph (1) or (2) before this Decree enters into force shall be deemed to have filed for registration of a structure demolition and scaffolding construction business under the amended provisions of attached Table 1, and to have filed for registration of a structure dismantlement and scaffolding construction work as his or her main field of business. |
(6) | In cases of construction works for which a contract for scaffolding and structure demolition business entered into before this Decree enters into force, a constructor who has filed for registration of a site preparation and pavement business under paragraph (3) may continue to perform the services under the contract, despite the conversion of the type of his or her business under the amended provisions of attached Tables 1 and 2 and paragraphs (1) through (4). |
[Moved from Article 5; previous Article 6 moved to Article 7 <Dec. 28, 2021>]
Article 7 (Special Cases concerning Conversion of Type of Business regarding Maintenance and Management Business of Structures)
(1) | A person who meets the standards for registration of maintenance and management business of structures prescribed in previous attached Table 2 (hereinafter referred to as "previous structure maintenance and management business entity"), among persons who filed for registration or applied for registration of maintenance and management business of structures before September 16, 2020, may file for registration with the construction business registration authority after converting his or her business into a construction business or civil engineering business out of the business categories engaged in general construction referred to in the amended provisions of attached Table 1 or into any of the following business categories out of those engaged in specialized construction under those amended provisions, by December 31, 2023. |
1. | Site preparation and pavement business; |
2. | Interior architectural works business; |
3. | Metal doors and windows, and roofing prefabrication works business; |
4. | P Painting, wet waterproofing, stone works business; |
5. | Reinforced concrete works business; |
6. | Waterworks and sewerage works business. |
(2) | Where a previous structure maintenance and management business entity intends to file for registration after converting his or her business into a business category of performing specialized construction under paragraph (1), he or she shall apply for registration of all or part of the business field of the business category he or she converts into as his or her main field of business. |
(3) | Where a person who applies for registration after converting his or her business category pursuant to paragraph (1) meets the following standards, the construction business registration authority shall register the relevant business category by deeming that he or she meets the registration standards under the amended provisions of attached Table 2: In such cases, a person who files for registration after converting his or her business category (hereinafter referred to as "converted structure maintenance and management business operator") shall meet the requirements for registration provided in the amended provisions of attached Table 2 with regard to the type of construction business he or she has converted into by December 31, 2026 (in cases of a converted structure maintenance and management business entity who meets the requirements determined and publicly notified by the Minister of Land, Infrastructure and Transport, such as that the appraised value of execution capacity publicly announced under Article 23 of the Act is less than the average of business entities in the relevant business type, he or she shall meet the requirements for registration by December 31, 2029). |
Technological Capability | Facilities and Equipment | Capital | At least four persons out of construction engineers of junior grade or higher in the field of civil engineering or architectural engineering under the Construction Technology Promotion Act | Visual inspection equipment: Magnifying glasses, telescopes, and microscopes measuring crack width; At least one unit of the following equipment to perform non-destructive tests: Rebound hardness tester; Measuring equipment using sound waves: Hammers and chains; Measuring equipment using ultrasounds; Magnetic response inspection equipment: At least one unit of concrete coating measuring equipment; Electrical corrosion inspection equipment: At least one unit of equipment measuring electrical resistivity of concrete, and at least one unit of equipment measuring potential difference; An office. | KRW 2 millions |
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(4) | In cases of conversion of business categories under paragraphs (1) through (3), procedures and methods for applying for conversion and the assessment methods of the performance records of construction works shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport. |
(5) | Notwithstanding the amended provisions of attached Tables 1 and 2 and the conversion of the business categories, a structure maintenance and management business entity may be awarded a contract for construction works of the previous structure maintenance and management business until December 31, 2023. |
(6) | Notwithstanding the amended provisions of attached Tables 1 and 2 and the conversion of the business categories, a previous structure maintenance and management business entity may continue to perform the services under a contract for works for which a contract for structure maintenance and management business has been concluded before December 31, 2023. |
[Moved from Article 6; previous Article 7 moved to Article 8 <Dec. 28, 2021>]
Article 8 (Transitional Measures concerning Registration of Business Categories of Performing Specialized Construction Works)
(1) | A person who filed for registration of the business category of performing specialized construction works under the previous provisions referred to in the left column of the following Table before this Decree enters into force shall be deemed to have registered the business category of performing specialized construction works under the amended provisions of attached Table 1 referred to in the right column of that Table. |
Previous business category of performing specialized construction works | Business category of performing specialized construction works hereunder | Earthwork | Site formation and pavement work | Paving work | Boring or grouting work | Metal structure, windows, or greenhouse work | Metal windows and roof assembly construction | Sheet metal roofing or building assembly construction | Painting work | Painting, wet construction, waterproofing, and stone work | Wet construction or waterproofing work | Stone work | Landscape planting | Landscape planting and facility construction work | Landscape facility installation work | Steel structure construction work | Steel structure construction work | Steel installation work | Underwater construction | Underwater and dredging work | Dredging work | Elevator installation work | Elevator and cable construction | Cable installation work | Mechanical equipment construction | Machinery and gas facility construction | Gas facility construction (class I) | Gas facility construction (class II) | Gas heating construction | Gas facility construction (class III) | Heating construction (class I) | Heating construction (class II) | Heating construction (class III) |
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(2) | A person who filed for registration of the business category of performing specialized construction works (excluding maintenance and management business of structures and scaffolding and structure demolition business) pursuant to the previous provisions before this Decree enters into force shall be deemed to have registered a field of business corresponding to the business category of performing specialized construction works as a main field of business under the amended provisions of Article 7-2. |
[Moved from Article 7; previous Article 8 moved to Article 9 <Dec. 28, 2021>]
Article 9 Omitted.
[Moved from Article 8; previous Article 9 moved to Article 10 <Dec. 28, 2021>]
Article 10 (Relationship with Other Statutes and Regulations)
(1) | Where a person who has registered the business category of performing specialized construction works under the previous provisions listed in the left column of the following Table is cited by other statues or regulations as at the time this Decree enters into force, a person who filed for registration of the business category of performing specialized construction works under the amended provisions of attached Table 1 listed in the right column of the same Table shall be deemed to have been cited. |
Previous business category of performing specialized construction works | Business category of performing specialized construction works hereunder | Earthwork | Site formation and pavement work | Paving work | Boring or grouting work | Metal structure, windows, or greenhouse work | Metal windows and roof assembly construction | Sheet metal roofing or building assembly construction | Painting work | Painting, wet construction, waterproofing, and stone work | Wet construction or waterproofing work | Stone work | Landscape planting | Landscape planting and facility construction work | Landscape facility installation work | Steel structure construction work | Steel structure construction work | Steel installation work | Underwater construction | Underwater and dredging work | Dredging work | Elevator installation work | Elevator and cable construction | Cable installation work | Heating construction (class I) | Gas heating construction | Heating construction (class II) | Heating construction (class III) |
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(2) | Where a person whose business of installing gas facilities has been registered pursuant to Article 9 of the Framework Act on the Construction Industry is cited by other statutes or regulations as at the time this Decree enters into force, a person who filed for registration of gas facility construction work (class 1) out of machinery and gas facility construction business under the amended provisions of attached Table 1 or gas facility construction work (class 2) or gas facility construction work (class 3) out of gas heating construction business as his or her main field of business pursuant to the amended provisions of Article 7-2 shall be deemed to have been cited. |
(3) | Where any other statute or regulation cites a maintenance and management business entity registered pursuant to Article 9 of the Framework Act on the Construction Industry after the expiration of the effective period of maintenance and management business of structures referred to in Article 2 of the Addenda, it shall be deemed to cite a constructor registered after converting the business category pursuant to Article 7 of the Addenda. |
[Moved from Article 9 <Dec. 28, 2021>]
ADDENDUM <Presidential Decree No. 31380, Oct. 5, 2021>
This Decree shall enter into on the date of its promulgation. (Proviso Omitted.)
ADDENDUM <Presidential Decree No. 31516, Aug. 2, 2021>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM<Presidential Decree No. 31608, Apr. 6, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 51 (2) 4 and 5 and paragraph (9) of that Article shall enter into force on June 1, 2022. Article 2 (Applicability to Composition of Steering Committee)
(1) | A mutual-aid association shall elect its members in compliance with the amended provisions of Article 51 (2) 1 within one month after this Decree enters into force. In such cases, the members whose term of office is guaranteed pursuant to Article 3 (1) 2 and 3 of the Addenda shall be deemed to have been elected in accordance with the main clause. |
(2) | The Minister of Land, Infrastructure and Transport shall commission members in conformity with the amended provisions of Article 51 (1) 6 (b) within one month from the enforcement date of this Decree. |
(3) | Upon completion of the composition of members under paragraphs (1) and (2), the steering committee shall without delay elect a new chairperson and vice chairperson pursuant to the amended provisions of Article 51 (4). |
(4) | Notwithstanding the amended provisions of Article 51 (2) 1 and 6, the previous provisions shall apply to the prescribed number of the members of a steering committee until the committee is elected or commissioned pursuant to paragraph (1) or (2). |
Article 3 (Special Cases concerning the Term of Office of Members of Steering Committee)
(1) | The term of office of a member who is appointed and in office pursuant to the previous Article 51 (2) 1 as at the time this Decree enters into force shall be as follows: |
1. | Where the expiry date of the term of office under previous Article 51 (3) is between the enforcement date of this Decree and December 31, 2021: The day preceding the date on which members are elected pursuant to Article 2 (1) of the Addenda; |
2. | Where the expiry date of the term of office under previous Article 51 (3) is between January 1, 2022 and December 31, 2022: December 31, 2021. |
3. | Where the expiry date of the term of office under the previous Article 51 (3) is between January 1, 2023 and December 31, 2023: May 31, 2022. |
(2) | The term of office for a member who is commissioned and in office pursuant to previous Article 51 (2) 6 as at the time this Decree enters into force shall end on the date immediately preceding the date a member is commissioned pursuant to Article 2 (2) of the Addenda. |
(3) | The part concerning restrictions on reappointment among the amended provisions of Article 51 (3) shall also apply to the members who hold office as at the time this Decree enters into force: Provided, That a member who has been appointed consecutively for two or more times as at the time this Decree enters into force shall remain in office until the date provided in paragraph (1) or (2). |
ADDENDA <Presidential Decree No. 31928, Aug. 3, 2021>
Article 1 (Enforcement Date)
Article 2 (Applicability to Temporarily Failing to Meet Registration Standards)
Article 3 (Applicability to Exceptions to Restrictions on Subcontract of Construction Works)
Notwithstanding the amended provisions of subparagraph 3 of Article 31-2, where a subcontract is concluded under previous subparagraph 3 of Article 31-2 before the enforcement date prescribed in the proviso of Article 1 of these Addenda, a subcontract shall be deemed awarded under the proviso of Article 29 (2) of the Act until the relevant construction works are completed.
ADDENDA <Presidential Decree No. 32014, Sep. 24, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 32272, Dec. 28, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2022: Provided, That the amended provisions of Articles 25 (1) 8-2 and 35 (3), and subparagraph 7 of Article 87-3 shall enter into force on the date of its promulgation, and the amended provisions of Article 83-3 shall enter into force on January 28, 2022. Article 2 (Applicability to Details of Contract Agreements on Construction Works)
The amended provisions of Article 25 (1) 8-2 shall begin to apply to construction works a tender for which is publicly announced (referring to the conclusion of a contract agreement where a tender is not publicly announced) on or after the enforcement date under the proviso of Article 1 of these Addenda. Article 3 (Transitional Measures concerning Criteria for Assignment of Construction Engineers to Construction Sites)
Notwithstanding the amended provisions of Article 35 (3), the previous provisions shall apply to the criteria for assigning construction engineers to sites for construction works for which a tender is publicly announced (referring the conclusion of a contract agreement, where a tender is not publicly announced) before the enforcement date under the proviso of Article 1 of these Addenda.
ADDENDA <Presidential Decree No. 32447, Feb. 17, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on 2/18/2022. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 32809, Jul. 19, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 4, 2022: Provided, That the amended provisions of Article 86 (1) 9 and 10 shall enter into force on the date of its promulgation. Article 2 (Transitional Measures concerning Change in Persons Authorized to Make Dispositions, Such as Suspension of Business)
ADDENDUM <Presidential Decree No. 33112, Dec. 20, 2022>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 33456, May 9, 2023>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the following amended provisions shall enter into force on the dates in accordance with the following classifications:
1. | The amended provisions of Article 13 (1) 2: The date on which six months elapse after the promulgation date; |
2. | The amended provisions of the main clause of subparagraph 2 (a) of the remarks of attached Table 2: The date on which one year elapses after the promulgation date. |
Article 2 (Applicability to Special Cases concerning Standards for Registration of Construction Business)
The amended provisions of Article 16 (1) shall begin to apply where an application for registration of another category of construction business is additionally filed after this Decree enters into force. Article 3 (Applicability to Standards for Registration of Construction Business)
(1) | The amended provisions of the main clause of subparagraph 2 (a) of the remarks of attached Table 2 shall also apply to a person who has his or her construction business registered or applies for registration of construction business before the enforcement date under subparagraph 2 of Article 1 of these Addenda. |
(2) | A person who has his or her construction business registered as of the enforcement date under subparagraph 1 of Article 1 of these Addenda but who fails to meet the standards for registration of an office pursuant to the amended provisions of Article 13 (1) 2 shall meet the standards for registration of the office under the same amended provisions by December 31, 2023. |
(3) | A person who has his or her construction business registered before this Decree enters into force but who fails to have the technological capability under the amended provisions of subparagraph 2 (m) (i) of attached Table 2 shall have the technological capability under the same amended provisions by June 30, 2024. |
Article 4 (Transitional Measures concerning Suspension of Business or Imposition of Penalty Surcharges)
Notwithstanding the amended provisions of subparagraph 1 (d) of attached Table 6, the previous provisions shall govern the application of the standards for the suspension of business or for the imposition of penalty surcharges against violations committed before this Decree enters into force.
Article 5 Omitted.
ADDENDUM <Presidential Decree No. 33664, Aug. 8, 2023>
This Decree shall enter into force on the date of its promulgation.