FRAMEWORK ACT ON THE CONSTRUCTION INDUSTRY

Expand Act No. 11466, Jun. 1, 2012 

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

Last updated : 2013-04-23