ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON THE CONSTRUCTION INDUSTRY

영문법령 불러오는 중…

ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON THE CONSTRUCTION INDUSTRY — 법갈피

Article 7-2(Registration of Main Field of Business and Cancellation of Registration) #

(1) A person who intends file for registration of the business category of performing specialized construction works shall file an application for registration with the Minister of Land, Infrastructure and Transport by determining at least one field of business that represents a material portion of the business conducted by him or her (hereinafter referred to as "main field of business") among the business fields of the relevant business category when filing for registration of the construction business under the main clause of Article 9(1) of the Act. <Amended on Dec. 28, 2021>

(2) Where a person who has filed for registration of the business category of performing specialized construction works intends to file for additional registration of a main field of business, he or she shall file an application for additional registration with the Minister of Land, Infrastructure and Transport after satisfying the standards under Article 13(1)1. In such cases, Article 9 shall apply mutatis mutandis to the examination of an application for registration of the main field of business. <Added on Dec. 28, 2021>

(3) Where a constructor who has filed for registration of at least two main fields of business in the relevant business category pursuant to paragraphs (1) and (2) intends to cancel registration of part of the main fields of business, he or she shall file an application for cancellation with the Minister of Land, Infrastructure and Transport. <Added on Dec. 28, 2021>

(4) Upon receipt of an application for cancellation under paragraph (3), the Minister of Land, Infrastructure and Transport shall cancel registration of the relevant main field of business and enter such fact in the construction business registration certificate and the construction business registration pocketbook under Article 9-2 of the Act and the register for construction business registration under Article 12 of this Decree. <Added on Dec. 28, 2021>

[This Article Added on Dec. 29, 2020]

[Title Amended on Dec. 28, 2021]

Article 13(Standards for Registration of Construction Business) #

(1) The standards for registration of construction business under Article 10 of the Act shall be as follows: <Amended on Aug. 6, 1999; Aug. 25, 2001; Sep. 18, 2002; May 7, 2005; Nov. 25, 2005; Dec. 28, 2007; Feb. 29, 2008; Jun. 5, 2008; Nov. 1, 2011; Mar. 23, 2013; Nov. 14, 2014; Jun. 18, 2019; Dec. 29, 2020; May 9, 2023>

1. He or she shall have technological capabilities, capital (in cases of an individual, referring to the appraised value of assets provided to the construction business; hereinafter the same shall apply), facilities, and equipment (in cases of business category of performing specialized construction works, referring to technological capabilities, capital, structures, and equipment of the main field of business), as specified in Appendix 2;

1-2. He or she shall submit a written confirmation of the possible amount of guarantee issued by financial institutions, etc. designated by the Minister of Land, Infrastructure and Transport (hereinafter referred to as "financial institutions, etc.") pursuant to the following criteria [referring to confirmation that a security provided for in Article 56(1)1 of the Act (excluding a tender security] may be made on the amount in excess of the standard amount of capital under subparagraph 1; hereinafter the same shall apply). In such cases, financial institutions, etc. shall determine and disclose the detailed criteria therefor pursuant to the criteria for issuance and termination of written confirmation of the possible amount of guarantee, such as evaluation of financial conditions, credit conditions, etc. and provision of security, deposit of cash, etc. determined and publicly notified by the Minister of Land, Infrastructure and Transport:

a. Financial institutions, etc. shall evaluate the financial status and credit status, etc. of persons applying for issuance of written confirmation of the possible amount of guarantee, and, according to the results of relevant evaluations, obtain security or a deposit of cash within the scope of not less than 25/100 but not more than 60/100 of the capital by business category under subparagraph 1;

b. Deleted; <Dec. 28, 2007>

c. Financial institutions, etc. shall state, on the written confirmation of the possible amount of guarantee, the terms and conditions under which they are to bear an obligation for guarantee on the amount of not less than the standard amount of capital under subparagraph 1 of a person subject to issuance of the written confirmation of the possible amount of guarantee;

2. An office meeting all of the following requirements shall be in place:

a. The office shall be located in a building approved for use pursuant to Article 22 of the Building Act;

b. The standards determined and publicly notified by the Minister of Land, Infrastructure and Transport, in relation to business performance, such as the location of the office, shall be met;

3. Where an unlawful business operator is prohibited from participating in a bid pursuant to statutes and regulations on contracts to which the State is a party, statutes and regulations on contracts to which a local government is a party, statutes and regulations on the management of public institutions, or statutes and regulations on local public enterprises, the period of prohibition must have passed first;

4. Deleted; <Nov. 14, 2014>

5. Where a disposition of suspension of the construction business is imposed, the fixed period must have passed first;

6. Deleted. <Aug. 21, 2003>

(2) Where a foreigner or a foreign corporation having a principal place of business in a foreign country files an application for registration of a construction business, the relevant applicant shall satisfy the following requirements for registration of the construction business; provided, the Minister of Land, Infrastructure and Transport may grant registration of the construction business on condition that the applicant satisfies the requirements prescribed in subparagraph 1 or 3 before the applicant enters into the first contract after completing registration for the construction: <Amended on Aug. 6, 1999; May 7, 2005; Dec. 28, 2007; Feb. 29, 2008; Mar. 23, 2013; Sep. 18, 2018>

1. If any person satisfying the requirements for technological capability as referred to in Appendix 2 is a foreigner, the foreigner shall have qualifications to sojourn for commercial matters, corporate investment, or trade management as prescribed in Appendix 1-2 of the Enforcement Decree of the Immigration Act;

2. If the applicant is a corporation, the capital at its main office, and if the applicant is an individual, the appraised amount of his or her assets (including assets possessed in a foreign country), respectively, shall be not less than the standard specified in Appendix 2;

3. The applicant shall establish a business office and make its registration pursuant to Article 614 of the Commercial Act.

[Title Amended on Aug. 6, 1999]

Article 16(Special Cases concerning Standards for Registration of Construction Business) #

(1) Where a constructor files an additional application for registration of another category of construction business, he or she shall be deemed to comply with the standards for registration of construction business under Appendix 2 in accordance with the following classifications: <Amended on Mar. 23, 2013; Feb. 11, 2016; Feb. 18, 2020; Dec. 29, 2020; Dec. 28, 2021; May 9, 2023>

1. Capital: He or she shall be deemed to already retain an amount of capital that corresponds to 1/2 of the minimum standard amount of capital for the business category he or she intends to register only for one business category within the limit of 1/2 of the minimum standard amount of capital, as referred to in Appendix 2, for the business category he or she holds (referring to the minimum standard amount of capital of the business category, the minimum standard amount of which is the highest where he or she holds at least two business categories);

2. Technological capability: Where the technological capability, referred to in Appendix 2, required for the business category he or she holds and the technological capability required for the business category he or she intends to file for registration are of the same type and grade and can be jointly utilized by those business categories, he or she shall be deemed to already have the technological capability of one person (or two persons, where the number of engineers who can be jointly utilized is at least five), limited to one business category; provided, where a constructor intends to file for additional registration of gas heating construction business [excluding where the constructor files for registration of heating works (class I) as his or her main field of business among gas heating construction business], he or she shall be deemed to already have engineers who can be jointly utilized.

(2) Among constructors approved for special cases concerning standards for registration under paragraph (1)1, where a constructor who meets all of the following requirements files an additional application for registration of another category of construction business, he or she may be deemed to already have capital equivalent to a half of the minimum capital standard of the category of construction business, only once, for which he or she intends to obtain registration limited to a half of the minimum capital standard (where he or she has registered at least two categories of construction business, referring to the minimum capital standard for the category of construction business the minimum capital standard of which is the highest) under Appendix 2 of the category of construction business he or she has registered; provided, where he or she is subjected to measures or a penalty under subparagraph 2 after he or she registers a further category of construction business because he or she is deemed to have capital equivalent to a half of the minimum capital standard, he or she shall meet the minimum capital standard of the category of construction business he or she has additionally registered within 60 days from the date he or she is subjected to the relevant disposition or penalty: <Added on Nov. 14, 2014; Feb. 18, 2020>

1. He or she shall be a constructor engaged in the construction business for at least 15 years;

2. He or she must never have been subjected to dispositions, such as the suspension of business, under Article 82, 82-2, or 83 of the Act, or a penalty due to a violation of this Act for the last 10 years.

(3) Where a constructor who meets all of the requirements referred to in the subparagraphs of paragraph (2) files an additional application for registration of at least two categories of construction business simultaneously, paragraphs (1) and (2) may apply thereto, respectively. <Added on Nov. 14, 2014; Feb. 18, 2020>

(4) Paragraph (1) shall apply mutatis mutandis where a person, other than a constructor, intends to file the first application for registration of at least two categories of construction business. <Amended on Nov. 14, 2014; Feb. 18, 2020>

(5) Where a person who has filed for registration of a business category of performing specialized construction works intends to file for additional registration of his or her main field of business in the same business category or a person who intends to file for registration of a business category of performing specialized construction works intends to file for registration of at least two main fields of business, he or she shall be deemed to already have one of the engineers with the same type and class of technical capabilities who can be jointly utilized by those main fields of business; provided, where a person who has filed for registration of gas heating construction business intends to file for additional registration of a main field of business [excluding heating works (class I)] or a person who intends to file for registration of gas heating construction business intends to file for registration of at least two main fields of business [excluding heating works (class 1)], he or she shall be deemed to already have engineers who can be jointly utilized. <Added on Dec. 29, 2020; Dec. 28, 2021>

(6) A constructor who has filed for registration of at least two categories of construction business before the enforcement of a partial amendment to the Enforcement Decree of the Framework Act on the Construction Industry (Presidential Decree No. 21819) may file an application with the Minister of Land, Infrastructure and Transport for special exceptions to the capital standards referred to in paragraph (1)1. <Added on Feb. 18, 2020; Dec. 29, 2020>

[This Article Wholly Amended on Nov. 10, 2009]

Article 25(Details of Contract Agreements on Construction Works) #

(1) Matters to be specified in a contract for construction works pursuant to Article 22(2) of the Act shall be as follows: <Amended on May 7, 2005; Dec. 28, 2007; Dec. 31, 2008; Dec. 24, 2019; Jan. 5, 2021; Dec. 28, 2021>

1. Details of construction works;

2. The contract price and the amount of wages out of the contract price;

3. Timing for commencement and completion of construction works;

4. If an agreement exists concerning advance payment of or payment for completed portion of the contract price, the timing, method and amount of the respective payments;

5. Matters concerning the burden of any loss caused by the discontinuance of construction works, rescission of the contract, or natural disasters;

6. Matters concerning the modification of a contract price or details of construction works owing to a modification of design, fluctuation of prices, etc.;

7. Matters concerning the issuance of a guarantee which certifies the payment of the price for a subcontract under Article 34(2) of the Act (limited to cases of a subcontract agreement);

8. Grounds for and procedures of the direct payment of a subcontract price under Article 35(1) of the Act;

8-2. Plans for assigning construction engineers under Article 40(1) of the Act;

9. Matters concerning the payment of the industrial safety and health management expenses pursuant to Article 72 of the Occupational Safety and Health Act;

10. Matters concerning the amounts required for the subscription to the retirement benefits system for construction workers and their methods of burden, in cases of the construction works to be obliged to subscribe to the retirement benefits system for construction workers under Article 87(1) of the Act;

11. Matters concerning the amounts and the industrial accident compensation insurance premiums under the methods of burden of the Industrial Accident Compensation Insurance Act, the employment insurance premiums under the Employment Insurance Act, and other various charges and methods to pay them under statutes or regulations in connection with the relevant construction works;

12. Matters concerning the methods of disposal and recycling of wastes produced from the relevant construction works;

13. Inspection for delivery and timing therefor;

14. Timing for payment of contract price after completion of construction works;

15. Matters concerning compensation for damage, such as payment of penalty, interests in arrears, etc., in cases of delay in fulfillment of the contract;

16. Liability period and methods of warranty against defects;

17. Matters concerning methods for the settlement of disputes, if any;

18. Matters concerning installation of convenient facilities related to employment under Article 7-2 of the Act on the Employment Improvement of Construction Workers.

(2) Deleted. <Feb. 5, 2014>

Article 30-2(Direct Performance of Construction Works) #

(1) "Construction works not exceeding the amount prescribed by Presidential Decree" in the main clause of Article 28-2(1) of the Act means construction works, the contract price of which is less than seven billion won. <Amended on Nov. 1, 2011; Mar. 26, 2019>

(2) "Ratio prescribed by Presidential Decree" in the main clause of Article 28-2(1) of the Act means ratios according to the following classifications: <Amended on Nov. 1, 2011; Mar. 26, 2019>

1. Where the contract price is less than 300 million won: 50/100;

2. Where the contract price is at least 300 million won, but less than one billion won: 30/100;

3. Where the contract price is at least one billion won, but less than three billion won: 20/100;

4. Where the contract price is at least three billion won, but less than seven billion won: 10/100.

(3) "Cases prescribed by Presidential Decree" in the proviso of Article 28-2(1) of the Act means the following: <Amended on Nov. 1, 2011; Jun. 21, 2012; Feb. 18, 2020>

1. Where a project owner has consented in writing as he or she deems it necessary to enhance the quality of construction works or efficiency in execution of construction works;

2. Where a contractor subcontracts the portion of his or her contracted construction works for which a patent or a new technology is used to a constructor capable of using the relevant patent or new technology.

(4) Notification of a plan for direct performance of construction works referred to in Article 28-2(2) of the Act shall be given within 30 days from the date the contract has been entered into, as prescribed by Ministerial Decree of the Land, Infrastructure and Transport; provided, where construction works directly performed under Article 28-2(1) of the Act has met all the following requirements, a direct performance plan of the relevant construction works need not be notified: <Amended on Dec. 28, 2007; Feb. 29, 2008; Nov. 1, 2011; Mar. 23, 2013>

1. A contract price of construction works shall be less than 40 million won;

2. A period for construction shall be within 30 days.

(5) Where a person who entered into a contract has notified the consulting engineers of a direct performance plan of construction works supervised by consulting engineers within the deadline under paragraph (4), he or she shall be deemed to have notified the project owner thereof.

(6) "Public institution prescribed by Presidential Decree" in the main clause of Article 28-2(4) of the Act means the following public institutions: <Added on Sep. 19, 2017; Jun. 18, 2019>

1. Public enterprises and quasi-government agencies under Article 5 of the Act on the Management of Public Institutions;

2. Local public corporations and local public agencies under Articles 49 and 76 of the Local Public Enterprises Act.

[This Article Added on Jun. 30, 2005]

Article 31(Scope of Blanket Subcontracts) #

(1) Where most of the major portions of any construction works is subcontracted to any third constructor under the main clause of Article 29 (1) of the Act, shall be where, of contracted construction works (where contracted construction works are those for several buildings, referring to construction works for each building), all of the principal works excluding the portions corresponding to the incidental works as prescribed in Article 21 (1) are subcontracted. <Amended on Feb. 18, 2020>

(2) "Where the constructor plans, manages, and coordinates any construction works contracted to him or her, as prescribed by Presidential Decree" in the proviso of Article 29 (1) of the Act means where a constructor performs the management of workforce, materials, equipment, funds, etc., construction management, quality management, safety management, etc. at the site of construction works and is equipped with organization, system, etc. therefor, as determined by the Minister of Land, Infrastructure and Transport. <Added on Jun. 30, 2005; Feb. 29, 2008; Nov. 1, 2011; Mar. 23, 2013; Feb. 18, 2020>

(3) Where split subcontracts can be awarded to at least two persons under the proviso of Article 29(1) of the Act shall be any of the following cases: <Amended on Aug. 6, 1999; Dec. 28, 2007; Nov. 1, 2011; Nov. 27, 2012; Feb. 18, 2020; Oct. 8, 2020>

1. Where contracted construction works are divided into different business categories of performing specialized construction works, and each specialized construction works is subcontracted to respective constructors qualified to perform relevant specialized construction works;

2. Where construction works to be executed on an island or in an isolated mountain area is subcontracted to a small or medium constructor or a cooperator registered pursuant to Article 48 of the Act who resides in the Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Do, or a Special Self-Governing Province (hereinafter referred to as "City/Do") to which such island or are belong.

Article 34(Inspections of Propriety of Subcontracts) #

(1) "Where the subcontract price falls short of the price computed in the ratio prescribed by Presidential Decree" in Article 31(1) and (2) of the Act means any of the following: <Amended on Nov. 27, 2012; Mar. 26, 2019>

1. Where the subcontract price is less than 82/100 of the amount that corresponds to the portion of the subcontract out of the contract price (referring to an amount which includes administrative expenses, profits, and value-added tax in addition to the amount calculated for the portion of the construction works to be subcontracted based on the contracted unit prices (including direct and indirect labor costs, material costs and expenditure) described in the statement of contract price calculation made by the contractor; excluding a portion of amount borne by a contractor under related Acts and statutes or regulations, including the cost of material directly paid by a contractor to a subcontractor and the cost incurred in issuing a written payment guarantee of the price for subcontract under Article 34(3) of the Act);

2. Where the subcontract price is less than 64/100 of the cost estimated by the project owner out of the construction works that corresponds to the subcontract.

(2) "Public institution prescribed by Presidential Decree" in Article 31(2) of the Act means the following public institutions: <Amended on Jun. 18, 2019>

1. Public enterprises and quasi-government agencies under Article 5 of the Act on the Management of Public Institutions;

2. Local public corporations and local public agencies under Articles 49 and 76 of the Local Public Enterprises Act.

(3) Where a project owner intends to request a change of a subcontractor or of the details of a subcontract under the main clause, with the exception of the subparagraphs, of Article 31(3) of the Act, he or she shall do so in writing within 30 days after receipt of a notice of subcontract under the main clause, with the exception of the subparagraphs, of Article 29(6) of the Act or the date he or she becomes aware that such ground exists. <Amended on Oct. 8, 2020>

(4) The Minister of Land, Infrastructure and Transport shall determine and publicly notify the criteria that can be utilized in cases of inspecting the work execution capacity of any subcontractor, the propriety, etc. of the details of any subcontract under Article 31(1) and (2) of the Act. <Amended on Mar. 23, 2013>

(5) A subcontract inspection committee (hereafter referred to as the "committee" in this Article) referred to in Article 31(5) of the Act shall be comprised of not more than 10 members, including one chairperson and one vice chairperson.

(6) The chairperson of the committee shall be the head of a project-owning agency (referring to a person designated by the head of a project-owning agency, from among public officials of Grade II or III who belong to the relevant agency in cases of Cities/Dos, and from among executive officers or employees who are of Grade I or higher in cases of public agencies referred to in paragraph (2)), and the vice chairperson and members shall be appointed or commissioned by the chairperson from among the following persons:

1. A public official who are in a manager or higher position in the relevant project-owning agency (referring to an executive officer or employee who is of Grade II or higher in cases of public agencies referred to in paragraph (3));

2. A person who is a research fellow or in a higher position in a construction-related research institute;

3. A person who has obtained a doctoral degree in the field of construction and has experience of research or work in the field for at least three years;

4. A person who is an assistant professor or in a higher level in university (limited to the field of construction);

5. A person who has obtained a qualification of professional engineer or higher in the field of construction under the National Technical Qualifications Act.

(7) Each member provided in paragraphs (6) 2 through 5 shall hold office for a term of three years and may be appointed consecutively for only one further term.

(8) A majority of the members of the committee shall constitute a quorum, and any decision thereof shall require the concurring vote of at least a majority of those present.

(9) Article 68-2 shall apply mutatis mutandis to the exclusion of, challenge to, or recusal of a member. <Added on Jul. 4, 2012>

(10) Except as provided in this Decree, matters necessary to operate the committee shall be determined by the chairperson through resolutions by the committee. <Amended on Jul. 4, 2012>

[This Article Wholly Amended on Nov. 1, 2011]

Article 34-2(Submission of Subcontract Plans) #

(1) "Public institution prescribed by Presidential Decree" in the former part of Article 31-2(1) of the Act means any of the following public institutions: <Amended on Nov. 1, 2011; Jun. 18, 2019>

1. Public enterprises and quasi-government agencies under Article 5 of the Act on the Management of Public Institutions;

2. Local public corporations and local public agencies under Articles 49 and 76 of the Local Public Enterprises Act.

(2) "Construction works prescribed by Presidential Decree" in the former part of Article 31-2(1) of the Act means any of the following: <Amended on Nov. 1, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Dec. 30, 2025>

1. Construction works for which a successful bidder is decided in accordance with Article 42(4) of the Enforcement Decree of the Act on Contracts to Which the State Is a Party (including any case applicable mutatis mutandis under the Decree of the Ministry of Finance and Economy prescribed in accordance with Article 39(3) of the Act on the Management of Public Institutions);

2. Construction works for which a successful bidder is decided pursuant to Article 42 (1) 1 of the Enforcement Decree of the Act on Contracts to Which a Local Government Is a Party [including any case applicable mutatis mutandis under the Decree of the Ministry of Interior and Safety prescribed pursuant to Articles 64-2 (5) of the Local Public Enterprises Act (including any case applicable mutatis mutandis under Article 76 (2) of that Act)].

(3) Where any constructor intends to be awarded a contract for any construction works in accordance with Article 31-2 of the Act, he or she shall submit a subcontract plan including the following matters, to a project owner, as prescribed by Decree of the Ministry of Land, Infrastructure and Transport: <Amended on Feb. 29, 2008; Jul. 26, 2010; Nov. 1, 2011; Mar. 23, 2013; Nov. 19, 2014; Aug. 4, 2016; Jul. 26, 2017; Feb. 18, 2020; Dec. 30, 2025>

1. Main types of construction {referring to types of construction determined and publicly notified by the Minister of Land, Infrastructure and Transport on the basis of types of construction stated in the detailed statement attached to a bid in accordance with Article 14(6) of the Enforcement Decree of the Act on Contracts to Which the State Is a Party (including any case applicable mutatis mutandis under the Decree of the Ministry of Finance and Economy prescribed in accordance with Article 39(3) of the Act on the Management of Public Institutions) and Article 15(6) Enforcement Decree of the of the Act on Contracts to which a Local Government Is a Party [including any case applicable mutatis mutandis under the Decree of the Ministry of Interior and Safety prescribed in accordance with Article 64-2(5) of the Local Public Enterprises Act (including cases to which this applies mutatis mutandis in accordance with Article 76(2) of that Act)} and quantities to be subcontracted;

2. The following matters concerning the main types of construction and quantities under subparagraph 1:

a. Methods of, and criteria for, selecting a subcontractor;

b. The amount of works to be subcontracted (limited to where the subcontracting amount which a person subject to a subcontract intends to be awarded as a subcontract amount is not less than the amount determined and publicly announced by the Minister of Land, Infrastructure and Transport).

(4) Deleted. <Aug. 4, 2016>

(5) In any of the following cases, a constructor may modify a subcontract plan submitted pursuant to paragraph (3): <Amended on Aug. 4, 2016; Feb. 18, 2020>

1. Where the subcontracting price which became different from the amount to be awarded as a subcontract amount referred to in paragraph (3)2b is simply reflected;

2. Where the project owner approves the modification in writing, deeming it necessary to improve the quality of construction works or the efficiency of construction works.

[This Article Added on Dec. 28, 2007]

[Previous Article 34-2 moved to Article 34-3 <Dec. 28, 2007>]

Article 34-9(Payment of Monetary Awards) #

(1) Persons eligible for the payment of a monetary award under Article 38-4(3) of the Act (hereafter in this Article referred to as "monetary award") shall be those who first submit facts regarding any act specified in the subparagraphs of Article 38-4(1) of the Act (hereafter in this Article referred to as "unfair practice") and evidentiary materials substantiating such facts; provided, the following persons shall be excluded from those eligible for the payment of a monetary award:

1. A project owner, contractor, or subcontractor who commits an unfair practice;

2. A project owner, contractor, or subcontractor who suffers damage due to an unfair practice;

3. A person who receives a monetary award pursuant to other statutes or regulations due to the same unfair practice.

(2) The Minister of Land, Infrastructure and Transport shall determine and publicly notify standards for paying a monetary award not exceeding two million won in consideration of the severity, etc. of an unfair practice.

(3) The Minister of Land, Infrastructure and Transport shall pay a monetary award to a reporting person within three months from the date a person authorized to make a disposition makes an administrative disposition against a person who commits an unfair practice, unless there is a compelling reason not to do so.

(4) To deliberate on matters regarding the payment of a monetary award, a monetary award payment examination committee may be established in a Regional Construction and Management Administration which performs affairs related to the operation of a fair construction support center under Article 82(1) of the Construction Technology Promotion Act and Article 115(2)1 of the Enforcement Decree of that Act.

(5) Except as provided in paragraphs (1) through (4), specific standards, procedures, and methods for the payment of a monetary award, and details necessary for the establishment, operation, etc. of a monetary award payment examination committee shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport.

[This Article Added on Jul. 19, 2022]

Article 35(Criteria for Assignment of Construction Engineers to Construction Sites) #

(1) Construction engineers to be assigned to a construction site under Article 40(1) of the Act shall be those corresponding to the type of the relevant construction works, and they shall be assigned thereto at the same time the construction works are commenced. <Amended on Sep. 18, 2002; Mar. 26, 2019>

(2) The assignment of construction engineers to a construction site under Article 40(1) of the Act shall be subject to the criteria for the assignment of construction engineers by scale of expected construction amounts under Appendix 5; provided, where the parties to a contract for work agree on the qualification types, classes, or number of construction engineers to be assigned to a construction site upon considering the type, scale, characteristics of construction technology, site conditions, etc. of construction works are deemed particularly necessary, their agreement shall apply. <Amended on Mar. 26, 2019; Jan. 5, 2021; Jun. 2, 2025>

(3) With respect to any of the following construction works, any constructor may assign one construction engineer over two construction sites with consent from the project owner within the scope of not compromising the quality of construction and safety: <Amended on Dec. 31, 1998; Dec. 31, 2008; Nov. 27, 2012; Mar. 26, 2019; Feb. 18, 2020; Dec. 28, 2021>

1. The following construction works of the same type, the estimated amount of which is less than 500 million won:

a. Construction works implemented in the same Si (including the Special Metropolitan City, Metropolitan Cities and Metropolitan Autonomous Cities) or Gun; provided, in cases of Jeju Special Self-Governing Province, construction works implemented within the jurisdiction of Jeju Special Self-Governing Province;

b. Construction works in any areas between neighboring Sis (including the Special Metropolitan City, Metropolitan Cities and Metropolitan Autonomous Cities) and Guns, where the project owner deems that no impediment exists to construction management or other technical management;

2. Construction works of the same type newly executed at the site of construction works in the course of execution.

(4) Deleted. <Dec. 31, 1998>

(5) If a constructor assigns a construction engineer to a construction site under Article 40(1) of the Act, he or she shall have the construction engineer obtain confirmation for such assignment from the project owner, as prescribed by Ministerial Decree of the Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Nov. 1, 2011; Mar. 23, 2013; Mar. 26, 2019; Feb. 18, 2020>

[Title Amended on Mar. 26, 2019]

Article 36(Buildings Subject to Restrictions on Builders) #

(1) "Detached house prescribed by Presidential Decree" in Article 41(1)2b of the Act means a home nursery, a communal living house, a local children's center, or a welfare facility for senior citizens (excluding welfare housing for senior citizens) which is in the form of a detached house described in subparagraph 1a of Appendix 1 of the Enforcement Decree of the Building Act. <Added on Feb. 2, 2012; Jun. 26, 2018>

(2) "Buildings prescribed by Presidential Decree" in Article 41(1)2c of the Act means buildings which are wholly or partially used for the following purposes: <Amended on Jul. 7, 2001; May 7, 2005; Nov. 25, 2005; Dec. 28, 2007; Nov. 1, 2011; Dec. 8, 2011; Feb. 2, 2012; Mar. 24, 2014; Jun. 26, 2018>

1. Schools under the Elementary and Secondary Education Act, the Higher Education Act, or the Private School Act;

1-2. Nurseries under the Infant Care Act;

1-3. Kindergartens under the Early Childhood Education Act;

1-4. Specialized educational institutions and lifelong educational facilities for the disabled under the Act on Special Education for Persons with Disabilities;

1-5. Lifelong educational facilities under the Lifelong Education Act;

2. Private teaching institutes under the Act on the Establishment and Operation of Private Teaching Institutes and Extracurricular Lessons;

3. Amusement taverns, from among food and service business under the Food Sanitation Act;

4. Lodging facilities under the Public Health Control Act;

5. Hospitals (including general hospitals, oriental medical hospitals, and intermediate care hospitals) under the Medical Service Act;

6. Specialized recuperation facilities, integrated recuperation facilities, and tourist performance places from among tourist lodging facilities or facilities used by tourists under the Tourism Promotion Act;

7. Living facilities for public use referred to in subparagraph 4o of Appendix 1 of the Enforcement Decree of the Building Act;

8. Business facilities referred to in subparagraph 14 of Appendix 1 of the Enforcement Decree of the Building Act.

[This Article Added on Apr. 18, 2000]

[Title Amended on Feb. 2, 2012]

Article 51(Steering Committee) #

(1) A mutual-aid association shall establish a steering committee. <Amended on Aug. 6, 1999>

(2) Each steering committee shall consist of the following members and the number of the members of the steering committee, who are members of a mutual-aid association, shall not exceed 1/2 of the total number of the members of the mutual-aid association: <Amended on Aug. 6, 1999; Sep. 18, 2002; Aug. 21, 2003; Dec. 28, 2007; Feb. 29, 2008; Nov. 1, 2011; Mar. 23, 2013; Feb. 11, 2016; Apr. 6, 2021; Aug. 8, 2023; Dec. 30, 2025>

1. Up to 14 members elected at a general meeting by direct and secret ballot in accordance with the criteria determined by the Minister of Land, Infrastructure and Transport, such as the number of investment units, from among the members of the relevant mutual-aid association;

2. 1 person designated by the Minister of Finance and Economy from among public officials under his or her jurisdiction;

3. One person designated by the Minister of Land, Infrastructure and Transport from among public officials under his or her jurisdiction;

4. Deleted; <Apr. 6, 2021>

5. Deleted; <Apr. 6, 2021>

6. Up to 14 members who fall under any of the following and are commissioned by the Minister of Land, Infrastructure and Transport:

a. A current or former professor or vice professor at a university or a senior research fellow at a government invested research institute in the major field of the construction industry or finance;

b. A certified lawyer or public accountant;

c. A current or former executive officer or a higher-ranking executive officer at the Financial Supervisory Service or a financial institution;

d. A person who has abundant knowledge and experience in the affairs of mutual-aid association and has served the relevant business for at least two years.

(3) Each member referred to in paragraph (2)1 and 6 shall hold office for a term of two years and may be reappointed for only one further term, and the terms of office for a member to fill a vacancy shall be the remainder of his or her predecessor's term of office. <Amended on Dec. 31, 1998; Aug. 6, 1999; Apr. 6, 2021>

(4) Each steering committee shall have a chairperson and two vice-chairpersons, but the chairperson and vice-chairpersons shall be elected from among and by its members by direct or secret ballot, respectively. In such cases, the chairperson and one of the vice-chairpersons shall be elected from among members provided in paragraph (2)6. <Amended on Feb. 11, 2016; Apr. 6, 2021>

(5) The chairperson shall convene the steering committee and preside over it.

(6) Each steering committee shall deliberate and decide on the following matters and may supervise the execution of affairs of the mutual-aid association: <Amended on Aug. 6, 1999; Apr. 6, 2021>

1. Basic policies concerning a business program, and other operation and management of affairs;

2. Matters regarding budgets and settlement of accounts;

3. Matters regarding loans;

4. Matters concerning the appointment and dismissal of an executive officer;

5. Other matters prescribed by the articles of association.

(7) Where the chairperson intends to convene a meeting of the steering committee to deliberate on the following matters, he or she shall inform the Minister of Land, Infrastructure and Transport of the relevant matters before convening the meeting and submit related materials: <Added on Apr. 6, 2021>

1. Formulating or changing a project plan regarding projects referred to in the subparagraphs of Article 56(2) of the Act;

2. Matters regarding budgets and settlement of accounts;

3. Matters recognized by the chairperson or vice chairperson as having a material impact on securing accountability in guarantee projects and mutual-aid projects referred to in Article 56(1)1 and 5 of the Act and ensuring the sound operation of the business of the mutual aid association.

(8) Where the Minister of Land, Infrastructure and Transport receives related materials pursuant to paragraph (7), he or she may request the re-examination of matters subject to deliberation under that paragraph. <Added on Apr. 6, 2021>

(9) The president of the mutual aid association may appear before the steering committee to present his or her opinion. <Added on Apr. 6, 2021>

Article 54(Registration) #

(1) When the establishment of the mutual-aid association is authorized, a mutual-aid association shall register the following particulars at the location of its main office: <Amended on Aug. 6, 1999>

1. Purpose;

2. Name;

3. Business;

4. Location of an office;

5. Date of authorization for establishment;

6. Total value of investment;

7. Amount of one unit of investment;

8. Method of investment;

9. Matters concerning the restriction on a transfer of an investment certificate;

10. Name and resident registration number of an officer (in cases of a chief director, including an address);

11. Matters concerning the restriction on the right of representation;

12. Matters concerning an agent;

13. Method of public announcement.

(2) Where a mutual-aid association establishes its branch or sub-branch office, etc. (hereinafter referred to as "branch office"), it shall register the name, location, and date of establishment of the branch office established at the location of its main office within 3 weeks after the establishment thereof. <Amended on Jan. 21, 2025>

(3) Where a mutual-aid association relocates its main office, it shall register the new location and the date of relocation at the former location or new location within 3 weeks after the relocation, and where a branch office is relocated, it shall register the new location and the date of relocation at the location of its main place of business within 3 weeks after the relocation. <Amended on Jan. 21, 2025>

(4) Upon any change in the registered matters (excluding cases falling under the registration of relocation under paragraph (3) or the registration of closure under paragraph (5)) under the subparagraphs of paragraph (1) or paragraph (2), a mutual-aid association shall make the registration thereof within 3 weeks after the date of such change; provided, the registration for any change in the total value of investments under paragraph (1)6 may be made within 3 months after the expiration of a fiscal year on the basis of the end of each fiscal year.

(5) Where a mutual-aid association closes its branch office, it shall make a registration of the effect of such closure at the location of its main office within 3 weeks after the closure. <Amended on Jan. 21, 2025>

Article 56(Subject Matter and Details to Be Guaranteed by Mutual-Aid Associations) #

(1) The subject matter of guarantee to be provided by a mutual-aid association in accordance with Article 54(1) of the Act are as follows: <Amended on Nov. 25, 2025>

1. Duties or obligations which a partner bears in the course of running the following businesses:

a. Construction industry defined in subparagraph 1 of Article 2 of the Act;

b. National heritage repair business under the Act on National Heritage Maintenance;

c. Firefighting system installation business under the Firefighting System Installation Business Act;

d. Electrical construction business under the Electrical Construction Business Act;

e. Information and communications construction business under the Information and Communications Construction Business Act;

f. Overseas construction business under the Overseas Construction Promotion Act;

2. Obligations which project owners who are real estate developers under Article 56(2)3 of the Act (referring to real estate developers under subparagraph 3 of Article 2 of the Act on the Management and Promotion of Real Estate Development Business; hereinafter the same shall apply) bears in connection with real estate projects (referring to real estate projects under subparagraph 4 of Article 2 of the Real Estate Investment Company Act; hereafter in Article 56-2 the same shall apply) implemented by concluding a contract for work with a partner;

(2) The details of each guarantee referred to in Article 56(1)1 of the Act shall be as follows: <Amended on Dec. 28, 2007>

1. Tender guarantees: To guarantee the performance of duties concerning the payment of a security for the tender which a partner participating in a tender of construction works, etc. bears as the participant in the tender;

2. Contract guarantees: To guarantee the performance of duties concerning the payment of a contract deposit which a partner bears in connection with the performance of contracted works, etc.;

3. Work performance guarantees: To bear the duties of performance of contract in place of its partner where he or she fails to perform the contractual duties of contracted works, or to guarantee the payment of a definite amount where he or she does not perform such duties;

4. Damage guarantee: To guarantee the obligations for the payment of damages for loss sustained by a third person in course of a partner's performing the contracted works, etc.;

5. Defect liability guarantees: To guarantee the execution of duties concerning repairs of defects which have occurred in connection with management of business, such as construction works, etc. of a partner;

6. Advance payment guarantees: To guarantee the obligation for return of advance payment to be received by a partner in connection with contracted works, etc.;

7. Subcontract guarantees: To guarantee the obligations corresponding to those referred to in subparagraphs 1 through 6 which a partner bears in connection with works, etc. which he or she intends to subcontract for, or subcontracts for.

(3) "Guarantees prescribed by Presidential Decree" in Article 56(1)1 of the Act means the following guarantees: <Amended on Nov. 1, 2011; Jun. 17, 2013>

1. Guarantees of authorization and permission;

2. Guarantees of materials purchase;

3. Guarantees of loan;

4. Guarantees of tax payment;

5. Guarantees of subcontract price payment;

6. Deleted; <Aug. 4, 2016>

7. Guarantee of price payment for renting construction machinery referred to in Article 68-3(1) of the Act;

8. Other guarantees, which are determined by the articles of association, of the performance of property duties which a partner bears in connection with the construction business carried on by himself or herself.

(4) Each mutual-aid association may determine and enforce contractual terms and conditions with regard to the details, scope, conditions, etc. of various guarantees to be given thereby. <Amended on Aug. 6, 1999>

Article 57(Guarantee Limits) #

(1) The overall guarantee limit up to which each mutual-aid association may provide a guarantee pursuant to Article 54(5) of the Act shall be 35 times the aggregate amount of investment and reserve funds, and the Minister of Land, Infrastructure and Transport may publicly announce the guarantee limit of each mutual-aid association in consideration of the financial soundness and guarantee risks of individual mutual-aid associations; provided, where it is guaranteed by a guarantee or insurance of a financial institution, insurance company or any other similar institution, or by taking other security, such guarantees shall not be included in the guarantee limit of the mutual-aid association. <Amended on Aug. 6, 1999; Nov. 25, 2005; May 27, 2010; Mar. 23, 2013>

(2) In determining the guarantee limit pursuant to paragraph (1), investments and reserve funds shall be applied on the basis of the settled accounts of the end of the year preceding each business year; provided, if, during the business year, the capital has been increased or assets have been revaluated under the Assets Revaluation Act, it shall be applied on the basis of investments and reserve funds at the time the increase of capital or revaluation of assets has been finished. <Amended on May 7, 2005>

(3) The limit by category of guarantee up to which each mutual-aid association may provide a guarantee with respect to its partners shall be determined, in consideration of the accident rates by category of guarantee, and the credit evaluation of the partners (including corporations, etc. under Article 56(2)1 of the Act and real estate developers who are project owners under subparagraph 3 of that paragraph; hereafter in this paragraph the same shall apply). <Amended on Aug. 6, 1999; Nov. 25, 2005; Jan. 5, 2021; Nov. 25, 2025>

(4) Where a mutual-aid association determines the limit by the categories of guarantees pursuant to paragraph (3), it shall notify the Minister of Land, Infrastructure and Transport of the limit so determined. <Amended on Aug. 6, 1999; Feb. 29, 2008; Mar. 23, 2013>

Article 57-2(Transmission of documents for claiming mutual aid benefits under mutual aid contract for indemnity medical care) #

(1) Where the policyholder, the insured, the beneficiary, or an agent thereof (hereinafter referred to as "policyholders, etc.") under a contract for indemnity medical mutual aid (referring to a mutual aid contract that pays only the medical expenses actually borne; hereinafter the same shall apply) requests a health care institution under Article 42 of the National Health Insurance Act (hereinafter referred to as "health care institution") to transmit documents necessary for claiming mutual aid benefits in accordance with Article 58-2(1) of the Act, he or she shall verify the details of medical treatment of the insured.

(2) Where a health care institution in receipt of a request under Article 58-2(1) of the Act transmits documents necessary for claiming mutual aid benefits under a contract for indemnity medical mutual aid, upon the request of a policyholder, etc., it shall transmit them after meeting all of the following requirements:

1. The documents shall be in a form that can be processed with an information processing device;

2. It shall take measures to ensure safety and protect personal information, etc., as determined and publicly notified by the Minister of Land, Infrastructure and Transport.

(3) "Good cause prescribed by Presidential Decree" in Article 58-2(2) of the Act means the following:

1. Where it is impractical to transmit the documents due to failures in the computerized system under Article 58-3(1) of the Act (hereinafter referred to as "computerized system for indemnity claims") or due to maintenance, inspection, etc. of the computerized system for indemnity claims;

2. Where an electronic infringement defined in subparagraph 22 of Article 2 of the Electronic Financial Transactions Act occurs and it is necessary to block the computerized system for indemnity medical claims to protect personal information, etc.;

3. Where preliminary procedures, such as system linkage, are being conducted to transmit documents through the computerized system for indemnity claims, as determined and publicly notified by the Minister of Land, Infrastructure and Transport;

4. Other cases equivalent to those specified in subparagraphs 1 through 3, as determined publicly notified by the Minister of Land, Infrastructure and Transport.

[This Article Added on Nov. 25, 2025]

Article 64-4(Review of Reasonableness of Rental Contracts for Tower Cranes) #

(1) "Where the subcontract amount is short of the amount according to the proportion prescribed by Presidential Decree" in Article 68-4(2) of the Act means any of the following cases:

1. Where the rental contract price for tower cranes falls short of 82/100 of the amount corresponding to the rent of tower cranes out of the contract amount of the contractor;

2. Where the rental contract amount for a tower crane falls short of 64/100 of the price estimated by the project owner with respect to the rent of tower cranes.

(2) Where the Minister of Land, Infrastructure and Transport reviews the appropriateness, etc. of a rental contract for tower cranes pursuant to Article 68-4(2) of the Act, the Minister shall stipulate the reasonableness of the rental contract amount for tower cranes, the rental ability, and reliability of the tower crane lessor.

(3) Where a project owner intends to request a change of a tower crane lessor or of the details of a rental contract under Article 68-4(3) of the Act, he or she shall do so in writing within 30 days after receipt of a notice of the rental contract for tower cranes under Article 68-4(1) of the Act or the date he or she becomes aware that such ground exists.

(4) If necessary for examining the reasonableness, etc. of a rental contract for tower cranes, the project owner may organize and operate a review committee. In such cases, if the project owner is the State, a local government, or a public institution (referring to a public corporation or quasi-government agency under Article 5 of the Act on the Management of Public Institutions and a local public corporation or a local public agency under Articles 49 and 76 of the Local Public Enterprises Act), Article 34(5) through (10) shall apply mutatis mutandis to the composition and operation of the review committee.

(5) Matters necessary for the detailed standards for the examination of items under Article 68-4(2) of the Act, such as the reasonableness of rental contracts for tower cranes, the procedures for the examination thereof, etc. shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport.

[This Article Added on Jun. 18, 2019]

Article 79-2(Cases of Temporarily Falling Short of Registration Standards) #

"Cases prescribed by Presidential Decree, such as temporarily falling short of the standards for registration" in the proviso of subparagraph 3 of Article 83 of the Act means any of the following cases: <Amended on Aug. 21, 2003; May 7, 2005; Mar. 29, 2006; Nov. 1, 2011; Feb. 11, 2016; Apr. 29, 2016; Jun. 30, 2016; Feb. 18, 2020; Aug. 3, 2021; Jun. 2, 2025>

1. Where the period which falls short of the registration standards, caused by death, disappearance, or retirement of a person who has the technological capability provided for in Appendix 2, does not exceed 50 days;

1-2. Where the registration standards are not met due to childcare leave (referring to the childcare leave provided in Article 19 of the Equal Employment Opportunity and Work-Family Balance Assistance Act) of a person who has the technical capability provided in Appendix 2; provided, it shall apply only to a business category which has at least two persons who meet the standard for technological capability, and only one person shall be recognized;

1-3. Where the registration standards are not met due to a reduction of working hours for a period of childcare (referring to a reduction of working hours for a period of childcare under Article 19-2 of the Equal Employment Opportunity and Work-Family Balance Assistance Act) of a person who has the technical capability provided in Appendix 2;

1-4. Where the standards for registration of an office are not met due to the change of the location of a place of business and each of the following is applicable:

a. An application shall have been filed for changing matters stated in a construction business registration certificate or a construction business registration pocketbook under Article 9-2(2) of the Act due to the change of the location of the place of business;

b. An office shall have been moved again to a place meeting the standards for registration of an office under Article 13(1)2 and an application shall have been filed again for changing matters stated in a construction business registration certificate or a construction business registration pocketbook under Article 9-2(2) of the Act within 30 days from the date of application for change under item a;

2. Where the period which falls short of the registration standards, caused by a decrease in the total amount of assets of a corporation subject to application of the proviso of Article 542-8(1) of the Commercial Act as of the end of its recent business year, does not exceed 50 days;

3. Where falling under any of the following items among the cases where the capital standards referred to in Article 13(1)1 has not met:

a. Where a court has made a decision on the commencement of rehabilitation procedures under the Debtor Rehabilitation and Bankruptcy Act and such procedures are pending;

b. Where deemed that there exists no hindrances in performing a rehabilitation plan, and the relevant constructor has been implementing such rehabilitation plan after receiving a decision on the closure of rehabilitation procedures from a court;

c. Where a creditor financial institution council has made a resolution on the commencement of joint management procedures by the credit financial institution council under the Corporate Restructuring Promotion Act and such procedures are pending;

d. Where the period which falls short of the capital standard does not exceed 50 days within one year from the date of registration of the construction business under Article 9(1) of the Act; provided, cases where a constructor files for registration of an additional business category shall be excluded herefrom.

4. Where a report on the transfer of construction business is accepted in accordance with Article 17 of the Act and the period during which the transferee fails to prepare a confirmation of guaranteeable amount under Article 13(1)1-2 is within 50 days from the date of acceptance.

[This Article Added on Sep. 18, 2002]

Article 82-5(Composition and Operation of Deliberative Committee) #

(1) The Deliberative Committee shall be comprised of not exceeding nine members, including one chairperson.

(2) The Vice Minister of Land, Infrastructure and Transport shall become the chairperson of the Deliberative Committee, and the following persons shall become members:

1. Not more than three persons appointed by the Minister of Land, Infrastructure and Transport, from among public officials in general service belonging to the Senior Executive Service of the Ministry of Land, Infrastructure and Transport;

2. Not more than five persons commissioned by the Minister of Land, Infrastructure and Transport, from among any of the following:

a. A person who holds or held office in a university as an associate professor or higher ranking, or in a government-funded research institution as a senior researcher or higher ranking, who is specialized in the construction industry or financial field;

b. A person qualified as an attorney-at-law;

c. Other persons who have extensive knowledge of and experience in the construction industry or financial field, who have engaged in affairs in the relevant field for at least two years.

(3) The term of office of members commissioned by the Minister of land, Infrastructure and Transport pursuant to paragraph (2)2 shall be three years; provided, the term of office of a member who fills a vacancy shall be the remainder of his or her predecessor's term.

(4) The chairperson of the Deliberative Committee shall preside over its affairs.

(5) Where the chairperson of the Deliberative Committee is unable to perform any of his or her duties due to inevitable circumstances, a member appointed by the chairperson shall perform his or her duties on his or her behalf.

(6) A majority of the members of the Deliberative Committee shall constitute a quorum, and any decision thereof shall require the concurring vote of at least a majority of those present.

(7) Except as provided in paragraphs (1) through (6), matters necessary for the organization and operation of the Deliberative Committee shall be determined by the Minister of Land, Infrastructure and Transport, following deliberation by the Deliberation Committee.

[This Article Added on Nov. 14, 2014]

Article 83(Construction Works Subject to Joining Retirement Mutual Aid for Construction Workers) #

(1) "Construction works prescribed by Presidential Decree" in Article 87(1) of the Act means the following: <Amended on Aug. 6, 1999; Aug. 25, 2001; Aug. 21, 2003; Nov. 29, 2003; Mar. 8, 2005; May 7, 2005; Dec. 28, 2007; May 27, 2010; Nov. 1, 2011; Aug. 11, 2016; Sep. 8, 2020>

1. Construction works, the order for which is placed by the State or a local government and the estimated amount of which (referring to the estimated amount of relevant construction works in cases of the construction works, a contract for which is renewed every year based on a long-term contract referred to in Article 21 of the Act on Contracts to Which the State Is a Party; hereafter in subparagraph 2, the same shall apply) exceeds 100 million won;

2. Construction works ordered by the State or a local government, the estimated amount of which exceeds 100 million won;

2-2. Construction works, the order for which is placed by a corporation invested by a corporation under subparagraph 2 at least 50 percent of paid-in capital and the estimated amount of which exceeds 100 million won;

3. Construction works of collective housing with at least 200 housing units with approval for construction plans under Article 15(1) of the Housing Act;

4. Construction works implemented as privately invested projects under the Act on Public-Private Partnerships in Infrastructure and the estimated amount of which exceeds 100 million won;

5. Construction works (including where construction plans have been approved pursuant to Article 15 of the Housing Act) of collective housing (referring to collective housing provided for in the Enforcement Decree of the Building Act) with at least 200 housing units and composite buildings (including a building connected to a number of buildings) with the purpose other than residence;

6. Construction works of officetels with at least 200 rooms among general business facilities under the Enforcement Decree of the Building Act;

7. Construction works, the estimated amount of which exceeds five billion won.

(2) Parties to a contract agreement of construction works under Article 87(2) of the Act shall calculate an amount of money required for joining the retirement pension system for construction workers and specify it in the statement of contract price calculation pursuant to the standards determined and publicly notified by the Minister of Land, Infrastructure and Transport. <Added on Dec. 28, 2007; Feb. 29, 2008; Mar. 23, 2013>

(3) Where a contractor subcontracts construction works referred to in paragraph (1), he or she shall specify the amount required for the subscription for the retirement pension system for construction workers in the statement of subcontract price calculation of construction works corresponding to such subcontracted portion; provided, this shall not apply if the contractor enters into a mutual-aid contract in which the construction worker employed by the subcontractor is the person obtaining such mutual-aid pursuant to the former part of Article 10(1) of the Act on the Employment Improvement of Construction Workers. <Amended on Aug. 21, 2003; May 7, 2005; Dec. 28, 2007>

(4) Any project owner under paragraph (1)1, 2, 2-2, 4, 5, 6 or 7 or a person who has approved any construction plan under subparagraph 3, 5 or 7 of that paragraph (hereafter in this Article referred to as "project owner, etc.") may verify whether a constructor performing the relevant construction works has subscribed to the retirement pension system for construction workers under Article 87(1) of the Act. <Amended on Dec. 31, 1998; Aug. 21, 2003; Dec. 28, 2007; May 27, 2010; Feb. 18, 2020>

(5) Where it is deemed necessary for verification under paragraph (4), the project owner, etc. may request the relevant constructor to submit a written verification of payment of mutual aid premiums to the Korea Construction Working Mutual Fund under Article 9 of the Act on the Employment Improvement of Construction Workers (hereinafter referred to as the "Korea Construction Working Mutual Fund"); provided, where the project owner, etc. can verify the written verification of payment of mutual aid premiums through the Knowledge Information System of Construction, such verification may take the place of the presentation of the written verification. <Added on Dec. 28, 2007; Feb. 18, 2020; Jun. 11, 2024>

(6) Where the amount stated in the statement of the contract price calculation for construction works under Article 87 (2) of the Act exceeds the mutual-aid contribution actually paid by the constructor as a result of verifying the particulars of his or her payment, the project owner, etc. shall make an adjustment of the contract amount by the sum of excess. <Added on Dec. 31, 1998; Aug. 6, 1999; Sep. 18, 2002; Dec. 28, 2007; Feb. 18, 2020>

Article 86(Delegation of Authority) #

(1) The Minister of Land, Infrastructure and Transport shall delegate the following authority with respect to constructors, etc. to Mayors/Do Governors in accordance with Article 91(1) of the Act: <Amended on Dec. 31, 1998; Aug. 6, 1999; Sep. 18, 2002; Jun. 30, 2005; Dec. 28, 2007; Feb. 29, 2008; Nov. 1, 2011; Mar. 23, 2013; Nov. 14, 2014; Feb. 11, 2016; Aug. 4, 2016; Feb. 18, 2020; Dec. 28, 2021; Jul. 19, 2022; Jun. 2, 2025>

1. Confirmation of the following items concerning a business category (excluding the categories of businesses determined and publicly announced by the Minister of Land, Infrastructure and Transport) of performing specialized construction works:

a. Receipt of an application for registration of construction business and confirmation of details of the application under Article 9 of the Act;

b. Receipt of an application for alteration of details in a construction business registration certificate or a construction business registration pocketbook and confirmation of details of the application under Article 9-2 of the Act;

c. Receipt of an application for transfer of construction business, merger of corporations and succession of a corporation and confirmation of details of the application under Article 17 of the Act;

2. Registration of a construction business and receipt of a report on matters concerning the standards for registration of a construction business under Article 9 of the Act;

3. Delivery and re-delivery of a construction business registration certificate or a construction business registration booklet under the Article 9-2 of the Act;

3-2. Measures for compulsory removal, etc. of advertising articles against a person who violates the limit for a sign under Article 11 of the Act;

4. Receipt of a report on the transfer of a construction business, merger of corporations, and succession to a construction business under Article 17 of the Act;

5. Receipt of a report on the discontinuance of a construction business under Article 20-2 of the Act and the cancellation of registration of a construction business;

6. Deleted; <Dec. 28, 2007>

7. Deleted; <Aug. 6, 1999>

8. Orders or directions to make corrections under Article 81 of the Act (excluding orders or directions to make corrections under paragraph (2)2);

9. Suspension of business or the imposition of a penalty surcharge under Article 82 of the Act; provided, this shall not apply to authority to make a disposition with regard to cases falling under Article 82(2)5 of the Act where a serious construction site accident occurs under Article 67(3) of the Construction Technology Promotion Act and the Minister of Land, Infrastructure and Transport organizes and operates a construction accident investigation committee in accordance with Article 68(1) of that Act;

9-2. Suspension of business, the imposition of a penalty surcharge or the cancellation of registration of a construction business under Article 82-2 of the Act;

10. Cancellation of registration of construction business or suspension of business under Article 83 of the Act; provided, this shall not apply to authority to make a disposition with regard to cases falling under Article 83(10) of the Act where a serious construction site accident occurs under Article 67(3) of the Construction Technology Promotion Act and the Minister of Land, Infrastructure and Transport organizes and operates a construction accident investigation committee in accordance with Article 68(1) of that Act;

10-2. Public announcement and notification of cancellation, etc. of registration of a construction business under Article 85-3 of the Act;

11. Hearings under Article 86 of the Act;

12. Imposition and collection of administrative fines under Article 101 of the Act (excluding the imposition and collection of administrative fines under paragraph (2)3 of this Article and subparagraph 10 of Article 99 of the Act);

12-2. Additional registration of a main field of business under Article 7-2(2), and cancellation of registration of a main field of business and entry of such cancellation under paragraph (4) of that Article;

12-3. Entry of matters regarding construction administration, such as registration of construction business, into the Knowledge Information System of Construction Industry and public announcement thereof under Articles 10 and 11;

13. Preparation and keeping of a register of a construction business under Article 12(1);

14. Deleted. <Jun. 5, 2008>

(2) The Minister of Land, Infrastructure and Transport shall delegate the following authority over constructors to the head of a Regional Land Management Office pursuant to Article 91(1) of the Act: <Added on Nov. 14, 2014; Feb. 18, 2020>

1. Reporting, investigations and inspections to determine whether a subcontract under Article 49(1) of the Act is appropriate, or is performed conscientiously;

2. Orders or directions to make corrections under subparagraph 9 of Article 81 of the Act (only where necessary to conduct affairs delegated pursuant to subparagraph 1);

3. Imposition and collection of administrative fines under Article 101 of the Act (limited to the imposition and collection of administrative fines under subparagraph 9 of Article 99 of the Act and subparagraph 3 of Article 100 of the Act, which are necessary to conduct affairs delegated pursuant to subparagraph 1).

(3) Deleted. <Dec. 28, 2007>

Article 87(Entrustment of Authority) #

(1) In accordance with Article 91(3) of the Act, the Minister of Land, Infrastructure and Transport shall entrust the following authority to institutions designated and publicly notified by the Minister of Land, Infrastructure and Transport under paragraph (2): <Amended on Sep. 18, 2002; Jun. 30, 2005; Dec. 28, 2007; Feb. 29, 2008; Jun. 5, 2008; Nov. 1, 2011; Mar. 23, 2013; Aug. 4, 2016; Jun. 18, 2019; Feb. 18, 2020; Oct. 8, 2020>

1. Confirmation of the following items concerning business categories of performing general construction works and specialized construction works determined and publicly notified by the Minister of Land, Infrastructure and Transport:

a. Receipt of an application for registration of construction business and confirmation of details of the application under Article 9 of the Act;

c. Receipt of an application for transfer of construction business, merger of corporations and succession of a corporation and confirmation of details of the application under Article 17 of the Act;

2. Appraisal and public announcement of constructors' execution capacity referred to in Article 23(1) of the Act, receipt of performance records of construction works, etc. submitted pursuant to paragraph (3) of that Article, and confirmation of the details thereof, and request for submission of data for evaluation of the execution capacity referred to in paragraph (4) of that Article;

3. Evaluation and publication of the construction management capacity of a construction manager and the receipt of their construction management performance, etc. under Article 23-2 of the Act;

4. Construction and operation of the Knowledge Information System of Construction Industry and the request for the submission of data required for such systems under Article 24 of the Act;

4-2. A comprehensive management of penalty points under Article 25(5) of the Act;

4-3. Publication and management of restrictions on participation in subcontracts under Article 29-3 of the Act;

5. Affairs regarding the assessment of cooperative relations among constructors under Article 48(4) of the Act;

5-2. Requests for the evaluation of employment of construction workers and the cooperation of relevant institutions provided in Article 48-2(1) of the Act, and requests for submission of evaluation data provided in the former part of paragraph (2) of that Article;

6. Request for submission of data to ascertain whether a constructor meets the standards for registration, confirmation of the contents thereof, and confirmation of other matters that the Minister of Land, Infrastructure and Transport deems necessary in the course of a fact-finding survey on a constructor under Article 49 of the Act;

7. Nurturing and management of specialized construction human resources under Article 87-2 of the Act;

8. Entry of the limit of the amount of construction work in a registration pocketbook of construction business under Article 39(4).

(2) Institutions entrusted with the authority upon designation by the Minister of Land, Infrastructure and Transport pursuant to paragraph (1) shall be the following institutions equipped with the workforce and equipment necessary to perform the entrusted affairs: <Amended on Sep. 18, 2002; May 7, 2005; Jun. 30, 2005; Dec. 28, 2007; Feb. 29, 2008; Aug. 26, 2008; Nov. 1, 2011; Mar. 23, 2013; Jun. 11, 2024>

1. The Association or an organization of constructors established pursuant to Article 41(1) of the Energy Use Rationalization Act;

2. A mutual aid association;

2-2. The Korea Construction Working Mutual Fund;

3. A government-funded research institution established pursuant to the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes to research the construction industry;

4. A corporation incorporated with permission from the Minister of Land, Infrastructure and Transport pursuant to Article 32 of the Civil Act for activation of management of construction business;

5. Deleted; <Nov. 1, 2011>

6. A corporation incorporated with permission from the Minister of Land, Infrastructure and Transport pursuant to Article 32 of the Civil Act for the establishment and operation of the Knowledge Information System of Construction Industry;

7. A corporation incorporated with permission from the Minister of Land, Infrastructure and Transport under Article 32 of the Civil Act for the promotion of cooperation among organizations related to the construction business.

(3) Where the Minister of Land, Infrastructure and Transport designates any institution entrusted with the authority under paragraphs (1) and (2), he or she shall prescribe the details of the entrusted authority, methods of exercising such authority and other necessary matters and publicly notify them in the Official Gazette. <Amended on Sep. 18, 2002; Feb. 29, 2008; Mar. 23, 2013>

(4) Any institution entrusted with the authority to evaluate and publicly announce execution capacity under paragraph (1)2 or the construction management capacity under subparagraph 3 of that paragraph shall notify the Minister of Land, Infrastructure and Transport of the results of processing the entrusted affairs within five days from the date of the public announcement. <Amended on Sep. 18, 2002; Feb. 29, 2008; Mar. 23, 2013; Oct. 8, 2020>

(5) Where the Minister of Land, Infrastructure and Transport deems it specifically necessary to smoothly exercise the authority entrusted under paragraphs (1) and (2), he or she may subsidize some of expenses incurred in exercising the entrusted authority within the budget. <Amended on Sep. 18, 2002; Feb. 29, 2008; Mar. 23, 2013>

[This Article Wholly Amended on Aug. 6, 1999]

[Title Amended on Aug. 4, 2016]

Article 87-2(Processing of sensitive information and personally identifiable information) #

(1) Where it is inevitable in order to conduct the following affairs, the Minister of Land, Infrastructure and Transport (including persons to whom the authority of the Minister of Land, Infrastructure and Transport has been delegated or entrusted pursuant to Article 91(1) and (3) of the Act) may process data including resident registration numbers or alien registration numbers under Article 19 of the Enforcement Decree of the Personal Information Protection Act: <Amended on Mar. 27, 2017; Jun. 26, 2018; Feb. 18, 2020>

1. Receipt and confirmation of applications for registration of construction business under Article 9(2) of the Act;

2. Affairs concerning the confirmation of disqualifications under Article 13(1) of the Act for the following affairs under Article 9-2 of the Act:

a. Receipt of applications for modification of entries in a certificate of registration of construction business or construction business pocket book and confirmation of the details of applications under Article 9-2(2) of the Act;

b. Re-issuance of a certificate of registration of construction business or construction business pocket book under Article 9-2(3) of the Act;

2-2. Affairs concerning the education on construction business ethics and practice under Article 9-3 of the Act;

3. Affairs concerning the acceptance of reports on the transfer of construction business, corporate merger or inheritance under Article 17 of the Act;

4. Affairs concerning the acceptance of reports on the closure of construction business and the cancellation of registration of construction business under Article 20-2 of the Act;

4-2. Appraisal and public announcement of the execution capacity of a constructor under Article 23 of the Act;

4-3. Appraisal and public announcement of the construction management capacity of a construction manager under Article 23-2 of the Act;

5. Affairs concerning the total management of construction industry information under Article 24 of the Act;

5-2. Deleted; <Dec. 20, 2022>

6. Affairs concerning the investigation of actual management, diagnosis of financial management conditions, etc. under Article 49(1) through (3) of the Act;

7. Affairs concerning the formulation of policies concerning the training and management of construction professionals and requesting the submission of necessary data under Article 87-2 of the Act.

(2) Where it is inevitable in order to conduct affairs concerning the issuance of a written confirmation of the guaranteed amount under subparagraph 4 of Article 10 of the Act and Article 13(1)1-2 of this Decree, financial institutions, etc. may process data including resident registration numbers or alien registration numbers under Article 19 of the Enforcement Decree of the Personal Information Protection Act. <Amended on Mar. 27, 2017>

(3) Where it is inevitable to perform affairs concerning the guarantees, loans, mutual-aid projects, etc. under Article 56 of the Act, a mutual-aid association may process data including resident registration numbers or alien registration numbers under Article 19 of the Enforcement Decree of the Personal Information Protection Act. <Added on Mar. 27, 2017>

(4) The mutual-aid association and the transmission agency entrusted with the affairs in accordance with Article 58-3(2) of the Act may process data containing resident registration numbers or alien registration numbers under subparagraph 1 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act and information on health under Article 23 of the Personal Information Protection Act of policyholder, etc., if it is inevitable to conduct business affairs regarding the operation of a computerized system for indemnity claims. <Added on Nov. 25, 2025>

[This Article Added on Aug. 6, 2014]

[Title Amended on Nov. 25, 2025]

[Previous Article 87-2 moved to Article 87-3 <Aug. 6, 2014>]

ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON THE CONSTRUCTION INDUSTRY

Article 1(Purpose) #

Article 2(Establishment of Master Plans for Construction Industry Promotion) #

Article 3 #

Article 4 #

Article 5 #

Article 6 #

Article 7(Categories of Construction Business, Fields of Business by Category of Business, and Details of Business) #

Article 7-2(Registration of Main Field of Business and Cancellation of Registration) #

Article 8(Minor Construction Works) #

Article 9(Examination of Applications for Registration of Construction Business) #

Article 10(Management of Information on Registration of Construction Business) #

Article 11(Public Announcement of Construction Business Registration) #

Article 12(Register for Construction Business Registration) #

Article 12-2 #

Article 12-3(Matters Subject to Applications for Alteration of Entries in Construction Business Registration Certificate or Construction Business Registration Pocketbook) #

Article 12-4(Contents and Methods of Education on Construction Business) #

Article 12-5(Institutions Conducting Education on Construction Business) #

Article 13(Standards for Registration of Construction Business) #

Article 14 #

Article 15 #

Article 16(Special Cases concerning Standards for Registration of Construction Business) #

Article 17(Delivery of Construction Business Registration Certificate to Forestry Cooperatives) #

Article 18(Posting of Signs) #

Article 19(Qualifications for Performing Construction Works) #

Article 20 #

Article 21(Scope of and Criteria for Incidental Works) #

Article 22 #

Article 23 #

Article 24 #

Article 25(Details of Contract Agreements on Construction Works) #

Article 26(Notification of Entries in Construction Work Ledgers) #

Article 26-2(Clear Statement and Adjustment of Expenses, Such as Insurance Premiums) #

Article 26-3(Scope of Public Institutions) #

Article 26-4(Scope of Small-Scale Construction Works Excluded from Guarantee for Payment of Contract Price) #

Article 26-5(Details to Be Notified for Presumption of Contracts) #

Article 26-6(Notification of Presumption of Contracts and Methods of Reply) #

Article 26-7(Retention of Written Documents) #

Article 26-8(Establishment and Operation of Comprehensive Management Systems of Construction Industry Information) #

Article 27(Procedures for Requesting Submission of Materials for Comprehensive Management of Construction Industry Information) #

Article 28(Criteria for Imposition of Penalty Points upon Contractors) #

Article 29(Period for Estimate) #

Article 30(Defect Liability Period) #

Article 30-2(Direct Performance of Construction Works) #

Article 31(Scope of Blanket Subcontracts) #

Article 31-2(Exceptions to Restrictions on Subcontract of Construction Works) #

Article 32(Notice of Subcontract) #

Article 33(Restrictions on Participation in Subcontracts for Construction Works) #

Article 34(Inspections of Propriety of Subcontracts) #

Article 34-2(Submission of Subcontract Plans) #

Article 34-3(Disclosure of Contract Data for Subcontracting) #

Article 34-4(Clear Statement of Amount Incurred in Issuing Payment Guarantee of Subcontract Price) #

Article 34-5(Scope of Public Institutions) #

Article 34-6(Grounds for Adjusting Construction Value) #

Article 34-7(Means of Requesting Written Document on Additional or Modified Works) #

Article 34-8(Types of Unfair Special-Purpose Agreements) #

Article 34-9(Payment of Monetary Awards) #

Article 35(Criteria for Assignment of Construction Engineers to Construction Sites) #

Article 36(Buildings Subject to Restrictions on Builders) #

Article 37(Buildings Not Subject to Restrictions on Builders) #

Article 38(Public-Use Facilities) #

Article 39(Determination of Minimum Limit of Construction Amount) #

Article 40(Guidance on Joint Contracts) #

Article 41(Registration of Cooperators) #

Article 42(Matters to Be Observed) #

Article 43(Special Cases concerning Subcontract Agreement) #

Article 44(Termination of Registration of Cooperators) #

Article 44-2(Data for Evaluation of Employment of Construction Workers) #

Article 45(Fact-Finding Surveys on Constructors) #

Article 46(Cooperative Relations between Associations) #

Article 47(Matters to Be Entered in Articles of Association) #

Article 48(Supervision over Association) #

Article 49(Number of Constructors Required for Consent at Time of Establishment of Association) #

Article 50(Matters to Be Entered in Articles of Association) #

Article 51(Steering Committee) #

Article 52(Exclusion of, Challenge to, or Recusal of Members) #

Article 53(Number of Constructors Required for Consent at Time of Establishment of Mutual-Aid Association) #

Article 54(Registration) #

Article 55(Investment and Partner's Liability) #

Article 56(Subject Matter and Details to Be Guaranteed by Mutual-Aid Associations) #