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Laws of the Republic of Korea |
CONSTRUCTION INDUSTRY
[Enforcement Date: Oct. 1, 2009] [Presidential Decree No. 21765, Oct. 1, 2009, Amendment of Other Laws and Regulations]
Ministry of Land, Transport and Maritime Affairs (Construction Policy Division) Tel.: 02-2110-8356
CHAPTER I GENERAL PROVISIONS
Article 1 (Purpose)
The purpose of this Decree is to provide the matters delegated by the Framework Act on the
Construction Industry and those necessary
for the enforcement thereof.
Article 2 (Establishment of Basic Plan for Construction Industry Promotion)
(1) In the event that
the Minister of Land, Transport and Maritime Affairs (hereinafter referred
to as the "Minister") intends to establish a basic plan
for the promotion of the construction
industry (hereinafter referred to as the "basic plan") under Article 6 (1) of the Framework
Act
on the Construction Industry (hereinafter referred to as the "Act"), he/she shall listen to the
opinions of the head of the
central administrative agency concerned: Provided, That the matters
as prescribed in Article 6 (2) 2 of the Act shall be in accordance
with the basic plan for the
promotion of construction technology established under Article 3 (1) of the Construction
Technology
Management Act.
(3) The term "other matters prescribed by the Presidential Decree" in Article 6 (2) 6 of the Act
refers to the matters falling under
each of the following subsections:
1. Measures for the productivity improvement of the construction works;
2. Measures for the quality improvement and standardization of construction materials; and
3. Measures for the development of the construction business management system.
Article 3 (Organization and Operation, etc. of Deliberation
Committee for Construction
Industry Development)
(1) The chairperson of the Deliberation Committee for Construction Industry Development
under Article 6-2 of the Act (hereinafter
referred to as the "Deliberation Committee") shall be
the Vice Minister of Land, Transport and Maritime Affairs, and the vice-chairperson
shall be
the person appointed by the Minister from high-ranking public officials belonging to the
Ministry of Land, Transport and
Maritime Affairs.
(2) The term "public officials belonging to the central administrative agencies prescribed by the
Presidential Decree" in Article
6-2 (3) of the Act means the public officials of level 3 (including
public officials equivalent thereto) or high-ranking public
officials belonging to the Ministry of
Strategy and Finance, the Ministry of Education, Science and Technology, the Ministry of
Public Administration and Security, the Minister of Knowledge Economy, the Ministry of
Environment, the Ministry of Labor, the
Ministry of Land, Transport and Maritime Affairs, and
the Fair Trade Commission.
(3) The chairperson shall represent the Deliberation Committee and exercise overall control of
affairs of the Deliberation Committee.
(4) In the event that the chairperson is unable to perform his/her duties due to unavoidable
reasons, the vice-chairperson shall
vicariously perform the chairperson's duty.
(5) The term of office of the commissioned members of the Deliberation Committee shall
be
three years, and they may be reappointed thereafter.
[This Article Newly Inserted by Presidential Decree No. 18918, Jun. 30,
2005]
Article 4 (Meetings of Deliberation Committee)
(1) The chairperson shall convene a meeting of the Deliberation Committee and preside over
the meeting.
(2) The meeting of the Deliberation Committee shall start by the attendance of a majority of all
registered members, and its resolution
shall require the consent of a majority of present
members.
[This Article Newly Inserted by Presidential Decree No. 18918, Jun. 30, 2005]
Article 5 (Allowances, etc.)
Allowances and travel expenses may be paid to the members of the Deliberation Committee
within the limit of budget: Provided, That
the same shall not apply to the case where the
members who are public officials attend the Deliberation Committee as the meeting
is directly
related with his/her duties.
[This Article Newly Inserted by Presidential Decree No. 18918, Jun. 30, 2005]
Article 6
Article 7 (Category and Contents of Affairs, etc. of Construction Business)
The category of construction business as referred to
in Article 8 of the Act and the contents of
affairs by each category shall be as described in the attached Table-1.
Article 8 (Minor Construction Works, etc.)
(1) The term "minor construction works as determined by the Presidential Decree" in the
proviso of Article 9 (1) of the Act refers
to any of the following works: 1. Construction works pertaining to the category of business executing general construction
works, and the contents of affairs classified
into such category as prescribed in the attached
Table-1, where the expected price of work [where a work is divided into two or
more works
and ordered for separate contracts, the expected price of work shall be the total amount of
each expected price of work,
and where the materials for the work are furnished by the
order-placing person (including a contractor for subcontracts), the expected
price of work
shall include the market price and freight of the materials; hereinafter referred to as the
"expected price of work"]
does not exceed fifty million won per work order;
2. Construction works pertaining to the category of business executing specialized
construction works, and the contents of affairs
classified into such category as prescribed in
the attached Table-1, where the expected price of work does not exceed ten million
won:
Provided, That the works falling under any one of the following subsections shall be
excluded:
(a) Gas facility works;
(b)
(e) Elevator installation works;
(f) Railroad and track works; and
(g) Heating works;
3. Installation works of machine facilities, etc. that are easily movable by assembling and
disassembling (limited to those directly
installed by the manufacturer or supplier of such
machine facilities, etc.).
(2)
In order to examine whether or not a person, who has filed an application for a construction
business registration under Article
9 (2) of the Act, is qualified, the Minister may, if necessary,
verify the status of possessing facilities and equipment or make
him/her submit the results of
the assessment of his/her financial management conditions.
Article 10 (Management of Information on Registration, etc. of Construction Business)
In the event that the Minister has performed
administrative affairs falling under any of the
following subsections, he/she shall enter records of such administrative affairs
in the
information and communication network of the Comprehensive Information Management
System of Construction Industry established
and operated for the systematic management of
construction industry information in accordance with Article 4 (3) of the Act (hereinafter
referred to as "Comprehensive Information Network of Construction Industry") within three
days from the date on which he/she has
performed such administrative affairs:
1. Registration of the construction business under the provisions of Article 9 (1) of the Act;
2. Receipt of the report on matters concerning registration standards under the provisions of
Article 9 (4) of the Act;
3. Modification of entries under the provisions of Article 9-2 (2) of the Act;
4. Receipt of the report on the transfer, merger or succession of the construction business
under the provisions of Article 17 of
the Act;
4-2. Cancellation of the registration of construction business under the provisions of Article
20-2 (2) of the Act;
5. Corrective orders, corrective instructions, the suspension of business, the imposition of
penalty surcharges or the cancellation
of registration under the provisions of Articles 81
through 83 of the Act; and
6. Imposition of fine for negligence under the provisions of Article 101 of the Act.
[This Article Newly Inserted by Presidential
Decree No. 18092, Aug. 21, 2003]
Article 11 (Publication of Construction Business Registration
In the event that the Minister grants a construction business registration in accordance with the
provisions of Article 9 (1) of
the Act, he/she shall publish such registration under the conditions
as prescribed by the Ordinance of the Ministry of Land, Transport
and Maritime Affairs.
(2)
(1) The term "period as prescribed by the Presidential Decree" in Article 9 (4) of the Act refers
to three years from the date when
the registration of construction business is made, or the report
of matters concerning the standards for construction business registration
is accepted (referring
to one year, if the written confirmation of guaranteeable amount is submitted under the
provisions of subsection
1 (b) of Article 13 (1)).
(2) Any person who intends to report the matters concerning the standards for construction
business registration
under Article 9 (4) of the Act shall submit a written report and documents
attached thereto prescribed by the Ordinance of the Ministry
of Land, Transport and Maritime
Affairs to the Minister, within thirty days from the date the period under section (1) elapses.
(3) In the event that the agency, which has issued the written confirmation of guaranteeable
amount, notifies (including notification
via Comprehensive Information Network of
Construction Industry) the Minister of the contents of such issuance within the period
as
referred to in section (2), the written confirmation of guaranteeable amount shall be deemed to
have been submitted.
(4) The provisions of Article 9 shall apply mutatis mutandis to the reporting of the matters
concerning the standards for construction
business registration.
[This Article Newly Inserted by Presidential Decree No. 17740, Sep. 18, 2002]
Article 12-3 (Entries in Construction
Business Registration Certificate or Construction
Business Registration Booklet Subject to Application for Change)
The term "matters
as prescribed by the Presidential Decree" in Article 9-2 (2) of the Act refers
to the matters stated in the following subsections:
Provided, That this shall not include the
matters reported under the provisions of Article 17 (1) or (3) of the Act:
1. Trade name;
2. Representative;
3. Location of a business office;
4. Corporate (or resident) registration number; and
5. Nationality or the name of one's affiliated country.
[This Article Newly Inserted by Presidential Decree No. 17740, Sep. 18, 2002]
Article 13 (Standards for Construction Business Registration)
(1) Standards for construction business registration under the provisions
of Article 10 of the Act
shall be as follows: 1. It shall have technical capability, capital (referring to the appraised value of assets offered
for the construction business
in case of individual, and the same shall apply hereinafter), and
facilities and equipment under the provisions of the attached
Table-2;
1-2. It shall submit the written confirmation of guaranteeable amount issued by financial
institutions designated by the
Minister (hereinafter referred to as "financial institutions,
etc.") pursuant to the criteria falling under each of the following
subsections [referring to
that which was confirmed to be guaranteed as provided for in Article 56 (1) 1 of the Act
(excluding bidding
security) may be provided on the amount in excess of the standard
amount for equity capital under subsection 1, and the same shall
apply hereinafter] In this
case, the financial institutions, etc. shall determine the details of the criteria, which is
prescribed
and publicly announced by the Minister, for the appraisal of the financial status,
credit status, etc., and issuance and dissolution
of the written confirmation of guaranteeable
amount, such as providing mortgage, security deposit, etc., and publicly announce them
thereof:
(a) Financial institutions, etc. shall evaluate the financial status and credit status, etc. of
persons applying for issuance of
written confirmation of guarantyeeable amount, and shall
secure the mortgage or security deposit of amount determined in accordance
to the results of
relevant evaluations, within the scope of 20/100 through 50/100 of the equity capital, per
category of business
under the provisions of subsection 1;
(b) 2. 3. In the event that an illegitimate person is prohibited from participating in a bid under the
provisions of the Act on the Contracts
to Which the State is a Party and its Enforcement
Decree, the relevant period for prohibition shall have passed;
4. In the event that the construction business registration is canceled for reasons other than
those as prescribed in subsection
1, 3, 5, 7 or 9 of Article 83 of the Act, one year and six
months shall have elapsed after the cancellation of such registration;
5. In the event of taking the disposition for suspension of the construction business, the
specified period shall have passed; and
6.
1. If the person satisfying the technical capacity requirements as referred to in the attached
Table-2 is a foreigner, the foreigner
shall meet the qualification of sojourn for commercial
matters, business investment, or trade operation as prescribed in the attached
Table-1 of the
Enforcement Decree of the Immigration Control Act;
2. If the applicant is a juristic person, the capital of its principal business office, and if he/she is
an individual, the appraised
amount of his/her assets (including those in possession in a
foreign country), respectively, shall be more than or equal to the
standard as shown in the
attached Table-2; and
3. The applicant shall establish a business office and make its registration pursuant to Article
614 of the Commercial Act.
Article 14
1. Capital: Half the minimum amount of capital required for the principal type of the
construction business (where there exist more
than two principal types of the
construction business, the highest of the minimum amounts of capital may apply) under
the registration
standards of the attached Table 2 may also be recognized as half the
minimum amount of capital required for the another type of
the construction business
for only one time.
2. Technology capability: Where the technology required for the principal type of the
construction business may be utilized in the
another type of the construction business,
the constructor may be recognized to meet the technology standard required for
applying
for the registration of another type of the construction business in accordance
with what is published and determined by the Minister.
Provided, That in the event that
a constructor files an application for another registration of the business of installing gas
facilities (limited to the Second Class and the Third Class) or the business of installing
heating system (limited to the Second
Class and the Third Class), the technical
manpower and offices which could be jointly utilized may be repeatedly recognized.
(2) The provisions of section (1) shall apply mutatis mutandis to the concurrent application for
registration of two or more categories
of construction businesses.
(3)
In the event that the Mayor/Do governor receives a report under the provisions of Article 11 (3)
of the Forestry Cooperatives Act,
he/she shall deliver a registration certificate of the
construction business and a registration booklet of the construction business.
Any constructor shall post a sign stating the contents of his/her construction business
registration at an easily visible spot of
his/her business office under the conditions as prescribed
by the Ordinance of the Ministry of Construction and Transportation.
(1) The scope of incidental works as referred to in Article 16 (4) of the Act shall be the works
falling under any of the following
subsections:
1. Subordinate works required for or due to the execution of the principal works;
2. Where two or more categories of specialized works are combined, their expected work
amounts are less than three hundred million
won, and the expected amount of the principal
works of such specialized works is at least half of the total expected work amounts,
the
remainder of such works; and
3. Where, of the categories of the construction business as shown in the attached Table-1, the
combined works among those included
in a mechanical equipment work business and a gas
facility execution business are contracted for by the constructor of the category
of business
concerning the principal works, the works of the other categories of business.
(2)
Article 25 (Contents of Contract Agreement on Construction Works)
(1) Matters to be specified in a contract agreement on construction
works under Article 22 (2)
of the Act shall be as follows: 1. Content of construction works;
2. Amount of contract, and amount for wages from the contract amounts;
3. Time of commencement and completion of construction works;
4. If there exists an agreement concerning advance payment of or payment for completed
portion of the contract amounts, the time,
method and amount of the respective payment;
5. Matters concerning the bearing of loss caused by the discontinuance of construction works,
rescission of the contract or natural
disasters;
6. Matters concerning the modification of amounts of contract or contents of construction
works due to a modification of design,
fluctuation of prices, etc.;
7. Matters concerning the delivery of a written guarantee which certifies the payment of the
price for subcontract under Article
34 (2) of the Act (limited to the case of a subcontract
agreement);
8. Reasons and procedures for the direct payment of a price for subcontract according to
Article 35 (1) of the Act;
9. Matters concerning the payment of the standard safety control expenses as prescribed by
Article 30 of the Industrial Safety and
Health Act;
10. Matters concerning the amounts required for the subscription to the retirement mutual-aid
for construction workers and their
methods for its payment, in the case of the construction
works subject to subscription to the retirement mutual-aid program for
construction workers
under Article 87 (1) of the Act;
11. Matters concerning the amounts and the methods of payment for the industrial accident
compensation insurance premium under the
Industrial Accident Compensation Insurance
Act, the employment insurance premium under the Employment Insurance Act, and other
various charges to be borne under the laws and regulations in connection with the
construction works concerned;
12. Matters concerning the methods of disposal and recycling of wastes resulting from the
construction works concerned;
13. Inspection for delivery and time therefor;
14. Time for payment of contract amounts after completion of construction works;
15. Matters concerning compensation for damages, such as payment of penalty, interests in
arrears, etc., in a case of delay in fulfillment
of the contract;
16. Warranty period and methods of warranty against defects;
17. Matters concerning the methods for the settlement of disputes, if any;
18. Matters concerning installations, etc. of convenience facilities under Article 17 (2) of the
Act on the Employment Improvement,
etc. of Construction Workers
(2) The Minister may determine and disseminate the standard contract on the contract of
construction
works, the entrustment of construction business management and the written
promise of participation in construction (in case of
a subcontract, including the standard
subcontract agreement of construction works recommended by the Fair Trade Commission
under
the Fair Transactions in Subcontracting Act), for the parties of the contract so that they
may enter into a fair and equal contract.
Article 26 (Notification of Entries in Construction Work Book)
(1) A constructor who is contracted for a construction work, where
the amount of the contract is
not less than one hundred million won, shall, pursuant to Article 22 (4) of the Act, notify the
order-placing
person of the entries in the construction work book via Comprehensive
Information Network of Construction Industry within thirty
days from the date the contract
agreement is concluded.
(2) Any order-placing person (referring to any contractor in the case of subcontract, and the
same shall apply hereinafter in this
Article) may verify whether or not the contracted contractor
has paid the insurance premium, etc. In this case, if the order-placing
person deems it necessary,
he/she may demand the constructor to submit verification of payment for the insurance
premium, etc.
(3) In the case where the pension premium under the National Pension Act, or the health
insurance premium under the National Health
Insurance Act explicated in the detailed statement
of contract amount is more than the actual payment for the insurance premiums,
after verifying
the payment records for the insurance premiums, etc. made by the constructor, the amount in
excess of the actual
payment can be adjusted.
[Wholly Amended by Presidential Decree 20488, Dec. 28, 2007]
Article 26-3 (Establishment and Operation of Comprehensive Information
Management
System of Construction Industry)
(1) For the efficient establishment of the Comprehensive Information Management System of
Construction Industry under the provisions
of Article 24 (3) of the Act, and promotion of
utilization thereof, the Minister may perform each of the affairs stated in the following
subsections: 1. Various kinds of research and development for the establishment and operation of the
Comprehensive Information Management System
of Construction Industry, and technical
supports thereto;
2. Execution of joint projects for the construction of the Comprehensive Information
Management System of Construction Industry;
3. Standardization of the Comprehensive Information Management System of Construction
Industry;
4. Promotion of the joint utilization of information utilizing the Comprehensive Information
Management System of Construction Industry;
and
5. Other matters necessary for the establishment and operation of the Comprehensive
Information Management System of Construction
Industry.
(2) The Minister may organize and operate a consultative organization with the business entities,
institutions or organizations
related to the construction for the purpose of efficient construction
and operation of the Comprehensive Information Management
System of Construction Industry.
In the event that the Minister requests the submission of materials under the provisions of
Article 24 (4) of the Act, he/she shall
notify in writing the following matters at least fifteen days
prior to the deadline for such submission: 1. Reasons for the request of submission;
2. Time limit of submission;
3. Details of materials to be submitted;
4. Type and form of materials to be submitted; and
5. Method of utilizing materials to be submitted.
[This Article Newly Inserted by Presidential Decree No. 17740, Sep. 18, 2002]
Article 28
The term "certain period as determined by the Presidential Decree" refers to the following
periods:
1. If the expected price of a construction work is not less than three billion won: at least twenty
days from the date when the construction
work site is explained;
2. If the expected price of a construction work is not less than one billion won: at least fifteen
days from the date when the construction
work site is explained;
3. If the expected price of a construction work is not less than one hundred million won: at
least ten days from the date when the
construction work site is explained; and
4. If the expected price of a construction work is not more than one hundred million won: at
least five days from the date when the
construction work site is explained.
Article 30 (Defect Warranty Liability Period)
The defect warranty liability period according to type of construction as prescribed in Article 28
(1) of the Act shall be in accordance
with the attached Table-4.
Article 30-2 (Direct Execution of Construction Works)
(1) The term "construction works of less than
the amount prescribed by the Presidential
Decree" in the text of Article 28-2 (1) of the Act refers to the construction works whose
contract amount is less than three billion won.
(2) The term "ratio prescribed by the Presidential Decree" in the text of Article 28-2 (1) of the
Act refers to 30/100.
(3) The term "cases prescribed by the Presidential Decree" in the proviso of Article 28-2 (1) of
the Act refers to the case where
the order-placing person recognizes the necessity for improving
the quality of works or its efficiency in works, and thus giving
their written consent.
(4) The notification of plans for direct execution of works under the provisions of Article 28-2
(2) of
the Act shall be made within 30 days from the date of concluding a contract agreement
under the conditions as prescribed by the
Ordinance of the Ministry of Land, Transport and
Maritime Affairs: Provided, That in the case where the construction work which
is directly
executed in accordance with Article 28 (2) 1 of the Act meets the following requirements, the
notification of plans
for direct execution of works may not be made 1. The contract amount of one construction work shall be less than forty million won; and
2. The construction period is within thirty days
(5) In the case of construction works having a supervisor, if the person concluding
a contract
agreement has notified the supervisor of the plans for direct execution of works within the time
limit under section
(4), it shall be deemed to have notified the order-placing person thereof.
[This Article Newly Inserted by Presidential Decree No.
18918, Jun. 30, 2005]
Article 31 (Scope of Blanket Subcontract)
(1) The case where most of the major portion of the construction works is subcontracted to
another constructor under the provision
of the text of Article 29 (1) of the Act, shall be the case
where, all of the principal works of contracted construction works (where
contracted
construction works are for several buildings, it shall refer to construction works for each
building) excluding the
portion corresponding to the incidental works as prescribed in Article
21 (1), are subcontracted.
(2) The term "case where the constructor carries out planning, management, and coordination of
the contracted works under the conditions
as prescribed by the Presidential Decree" in the
proviso of any part other than each subsection of Article 29 (1) of the Act means
the case where
a constructor performs the management of manpower, materials, equipments and funds, etc.,
work management, quality
management, safety management, etc. at the work site, under the
conditions as prescribed by the Minister of Land, Transport and
Maritime Affairs, and equips
with the organizational systems, etc. therefor.
1. The case where contracted construction works are divided by each category of specialized
work, and each specialized work is subcontracted
with the specialized constructor
concerned, respectively; and
2. The case where construction work to be executed in an island area or 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, Metropolitan
City, or Do
(hereinafter referred to as the "City/Do") to which such islands or places belong.
Article 32 (Notice of Subcontract,
etc.
(1) The notice under the provisions of Article 29 (5) of the Act shall be made within 30 days
from the date of the conclusion of
any subcontracts, etc. under the conditions as prescribed by
the Ordinance of the Ministry of Land, Transport and Maritime Affairs.
The same shall apply
to the case where the agreements of such subcontracts, etc. are altered or cancelled.
(3)
(2) In the event that the order-placing person intends to request change of the subcontractor or
the details of a subcontract under
Article 31 (2) of the Act, he/she shall make such request in
writing within 30 days from the date of receiving a notice of subcontract
under Article 32 or the
date on which he/she has come to aware such reason.
(3) The Minister shall determine and publish the criteria
to be utilized in examining the work
execution capability of subcontractor, the propriety of the details of subcontract, etc. under
Article 31 (1) of the Act.
(1) The term "public institutions prescribed by the Presidential Decree" in the first part of
Article 31-2 (1) refers to any one
of the following institutions:
1. Public corporations and quasi-governmental institutions under Article 5 of the Act on the
Management of Public Institutions; and
2. Local government-invested public corporations and local government public corporations.
(2) The term "construction works prescribed
by the Presidential Decree" in the first part of
Article 31-2 (1) refers to constructions falling under any one of the following
subsections:
1. Construction work where the successful bidder is determined under the provisions of Article
42 (4) of the Enforcement Decree on
the Act on Contracts to Which the State is a Party
(including the case where such provisions are applied mutatis mutandis under
Article 39 (3)
of the Act on the Management of Public Institutions); and
2. Construction work where the successful bidder is determined under the provisions of Article
42 (1) 1 of the Enforcement Decree
on the Act on Contracts to Which the Local
Government is a Party (including the case where such provisions are applied mutatis
mutandis under Article 64-2 (4) of the Local Public Enterprises Act and Article 76 (2) of the
same Act).
(3) In the event that any constructor desires to win a contract for the construction work in
accordance with the provisions of Article
31 (2) of the Act, he/she shall submit plans for
subcontracts which include the matters stated in the following subsections, under
the conditions
as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs:
1. Major construction work to be subcontracted [referring to the construction work prescribed
and publicly announced by the Minister,
on the basis of the construction work unit entered
in the detailed statement of computation of bidding price attached to the tender,
under the
provisions of Article 14 (6) of the Enforcement Decree of the Act on Contracts to Which the
State is a Party (including
the case where such provisions are applied mutatis mutandis under
Article 39 (3) of the Act on the Management of Public Institutions),
and Article 15 (7) of the
Enforcement Decree of the Act on Contracts to Which the Local Government is a Party
(including the case
where such provisions are applied mutatis mutandis under Article 64-2
(4) of the Local Public Enterprises Act and Article 76 (2)
of the same Act)], and the work
amount; and
2. Method and criteria for the determination of subcontractors for the major construction work
units and the work amount thereof
in accordance with section (1).
(4) In the event that any constructor has received a contract for construction works in
accordance
with Article 31 (2) of the Act, he/she shall promptly submit the plans for
subcontracts, including the matters stated in the following
subsections, to the order-placing
person under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport
and Maritime Affairs. In this case, for the long-term continuous construction work and
construction work executed by continuing
expenditure in accordance with the provisions of
Article 69 of the Act on Contracts to Which the State is a Party (including the
case where such
provisions are applied mutatis mutandis under Article 39 (3) of the Act on the Management of
Public Institutions)
and Article 78 of the Enforcement Decree of the Act on Contracts To Which
the Local Government is a Party (including the case where
such provisions are applied mutatis
mutandis under Article 64-2 (4) of the Local Public Enterprises Act and Article 76 (2) of the
same Act), the plans for annual subcontracts shall be submitted: 1. Persons for subcontract;
2. Major construction work unit to be subcontracted; and
3. Work amount to be subcontracted and subcontract price per construction work unit in
accordance with subsection 2, which are received
by the subcontractor (limited to the case
where the subcontract price to be received by the subcontractor is more than or equal
to the
amount prescribed and publicly announced by the Minister).
(5) In the case where the order-placing person consents in writing,
as he/she deems it necessary
for improving the quality of the works and efficiency in execution of works, the constructor
may alter
the plans for subcontract submitted in accordance with section (3) or (4).
[This Article Newly Inserted by Presidential Decree 20488,
Dec. 28, 2007]
[Article 34 (2) under previous Act has moved to Article 34 (3)
Article 34-3 (Explication of Amount for Issuance of Written Payment Guarantee of
Subcontract Prices)
(1) The term "the period prescribed by the Presidential Decree" in the text of Article 34 (2) of
the Act refers to thirty days from
the date the subcontract is concluded, or contents of the
subcontract is altered and concluded.
(2) The parties to a contract of construction shall explicate the amount required for the issuance
of the payment guarantee for
subcontract price under Article 34 (3) of the Act on the detailed
statement of contract amount in accordance with the criteria prescribed
and published by the
Minister.
(3) The order-placing person may verify whether or not the contractor executing construction
work has used the amount under the
provisions of Article 34 (3) of the Act. In this case, when
the order-placing person deems it necessary, he/she may demand the relevant
contractor to
submit the evidential document on details of payment of required expenses.
(4) In the event that the amount explicated
on the detailed statement of contract amount of the
construction works under the provisions of Article 34 (3) of the Act exceeds
the amount
actually paid by the constructor, the order-placing person may adjust the relevant surplus
amount after verifying the
payment details of required expenses of constructor under section (3).
Article 34-4 (Reasons for Adjusting Construction Amount)
(1) The term "public institutions prescribed by the Presidential Decree"
in Article 36 (2) of the
Act refers to the juristic persons invested or contributed by the State or local governments.
(2) The
notification under the provisions of Article 36 (2) of the Act shall be made within 15
days from the date on which the order-placing
person has paid the construction amount to the
contractor of construction works after adjusting it due to design alteration, etc.
(3) The specific matters concerning the contents and method of notification in accordance with
section (2) shall be determined
by the Ordinance of the Ministry of Land, Transport and
Maritime Affairs.
(3) With respect to the construction works falling under any of the following subsections, the
constructor may assign one construction
engineer over three construction sites upon consent by
the order-placing person:
1. The same type of construction works falling under any of the following subsections, where
the expected work amount is less than
five hundred million won:
(a) Construction work which is executed in the same City (including the Special
Metropolitan City and
Metropolitan Cities), Gun, and Jeju-Do; and
(b) Construction work in the areas between neighboring Cities (including the Special
Metropolitan City and Metropolitan Cities) and Guns, where the order-placing person
deems that there is no difficulty in construction
execution management or other technical
management;
2. The same type of construction work newly executed at the site of a construction work which
is under execution.
(4)
Article 36 (Structures Used by Multiple Persons)
The term "buildings as prescribed by the Presidential Decree" in subsection 4 of Article 41 (1)
of the Act refers to the buildings,
in which the whole or part of which is used for the usage
falling under any of the following subsections: 1. Schools under the Elementary and Secondary Education Act, the Higher Education Act, or
the Private School Act;
1-2. Nursery facilities under the Infant Care Act;
1-3. Kindergartens under the Early Childhood Education Act;
1-4. Special education
institutions and lifelong education facilities for disabled persons under
the Act on Special Education for Disabled, etc.;
1-5. Lifelong education facilities under the Lifelong Education Act;
2. Teaching institutes under the Act on the Establishment and Operation of Private Teaching
Institutes and Extracurricular Lessons;
3. Amusement taverns under the Food Sanitation Act;
4. Lodging facilities under the Public Health Control Act;
5. Hospitals (including general hospitals, oriental medicine clinics and rehabilitation centers)
under the Medical Service Act; and
6. Specialized recreation facilities, general recreation facilities and tourist resorts among
tourist lodging facilities or facilities
used by tourists under the Tourism Promotion Act.
[This Article Newly Inserted by Presidential Decree No. 16790, Apr. 18, 2000]
Article 37 (Buildings not Subject to Restriction on Constructors)
The term "structures as prescribed by the Presidential Decree"
in the proviso of the portion
other than each subsection of Article 41 of the Act refers to the structures falling under any of
the following subsections: 1. Warehouses, storehouses, workshops, compost repository, stable, fish farm, and other
structures similar to those established for
the purposes of agriculture, forestry, livestock
industry or fishery;
2. One-story workshops or structures for storage use which are built by prefabrication utilizing
panels and components manufactured
in workshops; and
3. Structures for residences built by housing construction operators registered under Article 9
of the Housing Act, who have satisfied
the equity capital, technical capability and records of
housing constructions pursuant to Article 13 (1) of the Enforcement Decree
of the said Act,
through the approval of plans for housing construction under Article 16 of the said Act, or
through a construction
permit pursuant to Article 8 of the Building Act.
[This Article Newly Inserted by Presidential Decree No. 16790, Apr. 18, 2000]
Article 38 (Facilities Used by Multiple Persons)
(1) The term "facilities prescribed by the Presidential Decree" in Article 41 (2) 1 of the Act
refers to golf course, ski slopes,
and car racing tracks according to the appended Table-1 of the
Enforcement Decree of the Installation and Utilization of Sports
Facilities Act.
(2) The term "facilities prescribed by the Presidential Decree" in Article 41 (2) 2 of the Act
refers to the facilities
falling under any of the following facilities, among park facilities under
Article 2 of the Act on Urban Parks and Greenbelts, etc.
1. Place of public performance (limited to place of public performance subject to registration
under Article 9 of the Public Performance
Act);
2. Enshrinement facilities (limited to the case where the area is at least one hundred thousand
square meters); and
3. Cemeteries (limited to the case where the area is at least one hundred thousand square
meters).
(3) The term "facilities prescribed by the Presidential Decree" refers to the facilities falling
under any of the facilities stated
in the following subsections, among the park facilities under
Article 2 of the Natural Parks Act:
1. Erosion control facilities installed in mountainous area or seashores (limited to the case
where the size of the mountainous area
or sand hill on the seashore is at least ten thousand
square meters); and
2. Sea bank facilities which are at least one kilometer long.
(4) The term "facilities prescribed by the Presidential Decree" in
Article 41 (2) 4 refers to maze
among amusement facilities used for general amusement business under Article 2 of the
Enforcement
Decree of the Tourism Promotion Act.
[This Article Newly Inserted by Presidential Decree No. 20488, Dec. 28, 2007]
CHAPTER V MANAGEMENT RATIONALIZATION AND ASSISTANCE
TO SMALL AND MEDIUM CONSTRUCTORS
Article 39 (Determination, etc. of Floor Price for Construction Amount)
(1) The term "public institutions prescribed by the Presidential
Decree" in Article 47 (1) of the
Act refers to juristic persons which the State or local governments invested in or contributed
to.
In the event that the Minister deems it necessary for maintaining mutual cooperative relations
among constructors under Article
48 (1) of the Act, he/she may determine and publicly notify
the following matters with respect to joint contracts, etc., and provide
guidelines required for
such:
1. Criteria for the type and operation of a joint contract such as the limit of liability for the
execution of works, recognition
of work results, etc. between the order-placing person and
joint contractor or between the members of a joint contractor;
2. Suggested matters concerning mutual cooperation between the constructors; and
3. Criteria for the evaluation of mutual cooperation between the constructors.
Article 41 (Registration of Cooperator)
(1) If the Minister intends to require a general constructor to register his/her cooperator under
Article 48 (2) of the Act, he/she
may determine the category of business to be registered, scope
of registration and other matters necessary for such registration.
Article 42 (Compliance)
(1) In the event that a cooperator registers according to Article 48 (2) of the Act, the general
constructor accepting the registration
and the constructor who makes such a registration shall
determine matters to be complied with through mutual agreement, and each
one of them shall
perform such agreed matters in good faith and in accordance with the principles on equal
standards.
Article 43 (Special Cases in Subcontract Agreement)
In the event that a general constructor accepting a registration and a cooperator
registering
according to Article 48 (2) of the Act enter into a blanket subcontract agreement including
matters referred to in
subsections of Article 25 (1), they are not required to indicate matters
specified in the registration in the written subcontract
agreement.
Article 44 (Dissolution of Cooperator's Registration)
A general constructor having accepted a registration or a cooperator having
registered under
Article 48 (2) of the Act may dissolve the registration relations in the event that the other party
fails to perform
the matters to be observed under the provisions of Article 42.
CHAPTER VI ORGANIZATION OF CONSTRUCTORS
Article 45 (Survey of Actual Status, etc. of Constructors)
(1) When the Minister or the head of local government (limited to the
case where it is necessary
to take care of the affairs entrusted under the Article 86 (1)) has public officials under his/her
command
conduct surveys on the actual status of management or the examination of materials
and facilities under Article 49 (1) of the Act,
he/she shall inform the constructor of the reasons
thereof in advance.
(2) Matters necessary for the code of practice for the public officials conducting the survey or
examination under Article 49 (1)
of the Act may be provided by the Ordinance of the Ministry
of Land, Transport and Maritime Affairs.
[This Article Newly Inserted by Presidential Decree No. 18918, Jun. 30, 2005]
Article 46 (Cooperative Relations between Associations)
Any association established by constructors pursuant to the provisions of Article 50 (1) of the
Act (hereinafter referred to as
the "association") may make use of others' construction
businesses, or jointly carry out their construction business.
[This Article
Wholly Amended by Presidential Decree No. 16512, Aug. 6, 1999]
Article 47 (Matters to be Entered in Articles of Association)
Matters
to be entered in the articles of association of the association in accordance with the
provisions of Article 50 (5) of the Act shall
be as follows:
1. Purpose;
2. Name;
3. Place of principal office;
4. Contents of business;
5. Qualifications for membership;
6. Fixed number, terms of office, and methods of election of officers;
7. Organization of general meeting and matters to be resolved at such general meeting;
8. Organization of the board of directors and matters to be resolved at such board of directors;
9. Matters concerning assets and accounts; and
10. Procedures for changing the articles of association.
Article 48 (Supervision of Association)
The association shall submit a business plan and a draft budget of income and expenditure to
the Minister prior to the commencement
of each fiscal year.
In Article 51 (1) of the Act, the term "number of constructors prescribed by the Presidential
Decree" means one tenth of the constructors.
CHAPTER VII CONSTRUCTION-RELATED MUTUAL-AID ASSOCIATION
Article 50 (Matters to be Entered in Articles of Association)
Matters to
be entered in the articles of association of a mutual-aid association (hereinafter
referred to as the "mutual-aid association")
in accordance with the provisions of Article 54 (5)
of the Act shall be as follows: 1. Purpose;
2. Name;
3. Place of office;
4. Matters concerning amount per share, methods of contributing for such share and
calculation of equity;
5. Matters concerning qualifications for, and entry and secession of members;
6. Matters concerning assets and accounts;
7. Matters concerning the general meeting;
8. Matters concerning the operating committee;
9. Matters concerning officers and staff;
10. Matters concerning financing;
11. Matters concerning business matters and its execution;
12. Matters concerning the alteration of the articles of association;
13. Matters concerning the dissolution and the settlement of residual property; and
14. Matters concerning the method of public announcement.
Article 51 (Operating Committee)
(1) The mutual-aid association shall put in place an operating committee.
(2) The operating committee shall consist of members falling under each of the following
subsections and the number of the members
of the operating committee, who are members of
the mutual-aid association, shall not exceed half of the total number of the members
of the
mutual-aid association: 1. Seven to nine persons elected from members at a general meeting;
2. One person appointed by the Minister of Strategy and Finance among officials under his/her
command;
3. One person appointed by the Minister among officials under his/her command;
4. The chairperson of the association, who invested the most in the relevant mutual-aid
association;
5. President of the mutual-aid association concerned; and
6. Eight to ten persons who fall under any one of the following subsections, and commissioned
by the Minister upon recommendation
of the operating committee of the mutual-aid
association. In this case, the operating committee shall recommend twice as many numbers
of the members planned to be commissioned:
(a) A person who is serving or formerly served as a 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 person who is qualified
as a lawyer or a certified public accountant; and
(c) A person who is serving or formerly served as an executive officer or a higher-ranking
officer at the Financial Supervisory Commission or a financial institution.
(d) A person who is working in a mutual aid association
for more than 2 years and abundant
in knowledge and experience in the area.
(3) The terms of office for members referred to in section (2) 1 and 6 shall be three years and
they may be reelected, and the terms
of office for member succeeding another member shall be
the remainder of his/her predecessor's term of office. 1. Basic policies concerning the business program, and other operation and management of
affairs;
2. Matters concerning the draft budget;
3. Matters concerning loans;
4. Matters concerning the appointment and dismissal of an officer; and
5. Other matters as determined by the articles of association.
Article 52 (Disqualification of Member of Operating Committee)
(1)
No person applicable to any of the following subsections shall be a member of the operating
committee as referred to in Article
51 (2) 1 and 6:
1. Person who is declared bankrupt, but not yet reinstated;
2. Person who is declared incompetent or quasi-incompetent;
3. Person who was sentenced to imprisonment without prison labor, and for whom two years
have not passed since the execution of such
sentence was terminated or exempted;
4. Person who was sentenced to probation of execution of sentence, and is still in the period of
such probation; and
5. Person who was imposed of disposition of suspension of the construction business or of an
unlawful business for a violation of
the Act on Contracts to Which the State is a Party, or
other laws and regulations, and for whom five years have not passed since
such disposition
has expired.
(2) When a member of the operating committee elected under Article 51 (2) 1 and 6 applies to
any of subsections of section (1) above,
he/she shall automatically lose his/her membership.
The term "number of constructors as determined by the Presidential Decree" in Article 55 (1) of
the Act refers to one third of the
constructors.
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 place of its principal office:
1. Purpose;
2. Name;
3. Business;
4. Place of an office;
5. Date of authorization for establishment;
6. Total value of investments;
7. Amount of one share 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 case of a chief director, including
an address);
11. Matters concerning the restriction on the power of representation;
12. Matters concerning an agent; and
13. Method of public announcement.
(2) In the event that the mutual-aid association establishes its branch or sub-branch office,
etc.
(hereinafter referred to as the "branch office"), it shall register the following particulars within
three weeks from the
date of such establishment : 1. At the place of the principal office, name and place of the established branch office;
2. At the place of a newly-established branch office, matters as prescribed in the above section
(1) 1, 2, 4, 10 through 13; and
3. At the place of an existing branch office, name and place of the newly-established branch
office.
(3) In the event that the mutual-aid association moves its principal office or branch office, it
shall register the following particulars
within three weeks: 1. When the principal office is moved to a place within the jurisdiction of another registration
office, the effect of such move
on the former place of the principal office and the place of
the branch office, and the particulars as referred to in section (1)
at the new place of the
principal office;
2. When the branch office is moved to a place within the jurisdiction of another registration
office, the effect of such move on
the place of the principal office, the former place of the
branch office and the place of the other branch offices, and the particulars
as referred to in
section (2) 2 above at the new place of the branch office; and
3. When the principal office or branch office is moved from one place to another within the
jurisdiction of the same register office,
the effect of such move from the place of the
principal office or branch office.
(4) In the event that any alteration occurs in any of the particulars (excluding the place of
office) mentioned in section (1) above,
the registration thereof shall be made within three weeks
after the date of such alteration: Provided, That the registration for
any alteration in the total
value of investments as prescribed in the above section (1) 6 may be made within three months
after
the expiration of a fiscal year as of the end of each fiscal year.
(5) In the case where the mutual-aid association closes its branch
office, it shall make a
registration of the effect of such closing at the place of the principal office and branch office
within
three weeks.
(1) The total value of investments of the mutual-aid association shall be the total nominal value
of accounts for investments contributed
by its partners.
(2) The amount of each unit of an investment shall be equal.
(3) The mutual-aid association shall issue an investment certificate
indicating a partner's
investment and deliver it to its partner, under the conditions as prescribed by the articles of
association.
1. Construction industry as referred to in subsection 1 of Article 2 of the Act;
2. Overseas construction business as prescribed by the Overseas Construction Promotion Act;
3. Electricity work business as prescribed by the Electrical Construction Business Act;
4. Information and communication work business as prescribed by the Information and
Communication Work Business Act;
5. Fire equipment business as prescribed by the Fire Services Act; and
6. Cultural properties repair business as prescribed by the Protection of Cultural Properties Act.
(2) The contents of each guarantee
as referred to in Article 56 (1) 1 of the Act shall be as
follows: 1. Bid guarantee: to guarantee the performance of duties concerning the payment of a security
for bids which a partner participating
in bids for construction works, etc. bears as the
participant in the bid;
2. Contract guarantee: 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 guarantee: to bear the duties of performance of contract in place of its
partner where he/she fails to perform
the contractual duties of the contracted works, or to
guarantee the payment of a definite amount in case he/she does not perform
such duties;
4. Damage guarantee: to guarantee the obligation for the payment of damages for loss of a
third person suffered in the course of
a partner's performing the contracted works, etc.;
5. Guarantee for repairs of defects: to guarantee the performance of duties concerning the
repairs of defects occurred due to violating
design drawings and specifications and other
directions in course of a partner's executing completed works, etc.;
6. Advance payment guarantee: to guarantee the obligation for return of advance payment to
be received by a partner in connection
with contracted works, etc.; and
7. Subcontract guarantee: to guarantee the obligations corresponding to those as referred to in
subsections 1 through 6 which a partner
bears in connection with works, etc. that he/she
intends to subcontract for, or has subcontracted for.
(3) The term "other guarantees
as determined by the Presidential Decree" in Article 56 (1) 1 of
the Act refers to-
1. Authorization and permission guarantee;
2. Materials purchase guarantee;
3. Loan guarantee;
4. Tax payment guarantee;
5. Subcontract price payment guarantee; and
6. 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
out by him/her.
(4) The mutual-aid association may determine and enforce contractual terms and conditions
with regard to detailed contents, scope,
conditions, etc. of various guarantees to be provided
thereby. 1. Investment in real estate investment companies under the Real Estate Investment Company
Act;
2. Establishment and operation of sports facilities under the Installation and Utilization of
Sports Facilities Act;
3. Real estate development businesses under the Act on Management and Fostering of Real
Estate Development Business; and
4. Capital investment or investment in collective investment business operator or collective
investment organization under the Act
on Capital Market and Financial Investment Business
[This Article Newly Inserted by Presidential Decree No. 20488, Dec. 28, 2007]
Article 57 (Guarantee Limit)
(1) The overall guarantee limit up to which the mutual-aid association may provide a guarantee
pursuant to Article 54 (5) of the
Act shall be twenty times the aggregate amount of investment
and reserve fund: Provided, That where it is guaranteed by a guarantee
or insurance of a
financial institution, insurance company, or other institutions similar thereto, or by taking other
securities,
such guarantees shall not be included in the guarantee limit of the mutual-aid
association.
(2) In determining the guarantee limit pursuant to the above section (1), the capital investments
and reserve funds shall be based
on the accounts settled by the end of the year preceding each
business year: Provided, That if, during the business year, the capital
has been increased or the
assets have been revaluated under the Assets Revaluation Act, the capital investments and
reserve funds
shall be based on capital investments and reserve funds at the time when the
capital increase or revaluation of assets has been
completed.
(3) The limit by categories of guarantee up to which the mutual-aid association may provide a
guarantee for its partners shall be
determined upon consideration of the accident rates by
categories of guarantee, and the credit evaluation of the partners (including
juristic persons, etc.
referred to in Article 56 (2) of the Act).
Article 59 (Entry for Transfer of Title)
(1) Where any partner or a person who was a partner intends to transfer his/her shares pursuant
to Article 59 (1) of the Act, he/she
shall make the entry for transfer of title by the mutual-aid
association under the conditions as prescribed by the articles of association.
(2) In the event that the mutual-aid association disposes of the shares acquired as referred to in
Article 60 (1) 2 through 5 of
the Act, it shall make an entry for transfer of title to the mutual-aid
association of the investment certificate, and only then
shall dispose thereof.
(3) The legal liability reserves under the provisions of section (1) shall be accounted for as a
reserve for the payments on the
debtor's behalf and the contingency reserve under the
provisions of section (2) shall be accounted for as a reserve for amortization
of subrogation
claims.
Article 62 (Fee, Interest, etc.)
(1) The mutual-aid association may collect from its partners (including juristic persons, etc.
referred to in Article 56 (2) of
the Act) guarantee fees, interest for loans, discount charge of
bills, and user fees.
(2) The rate of guarantee fees, interest for loans, and charges for discounting bills to be charged
under the provisions of section
(1) shall be subject to the approval of the Minister.
Article 63 (Investigation, etc. of Situations of Execution)
(1) If deemed necessary for investigation of the situations of execution
of construction works
pursuant to Article 64 (1) of the Act, the mutual-aid association may request a supervisor or
guarantee creditor
of such construction works to provide the data concerning the execution
method, process, materials, etc.
Article 63-2 (Investigation and Inspection)
(1) The investigation or inspection by the Financial Supervisory Commission in accordance
with Article 65 (2) of the Act shall be
limited to the case where the Minister requests thereof by
explicating the reason that such investigation or inspection is necessary.
[This Article Newly Inserted by Presidential Decree No. 20488, Dec. 28, 2007]
Article 64 (Maintaining a List of Assets, etc.)
(1) When the mutual-aid association has completed its registration of establishment, it shall
prepare the list of assets, and maintain
in its office, under the conditions as prescribed by the
articles of association, and announce it publicly.
(2) The mutual-aid association shall prepare, and maintain in its office, a list of partners, a list
of members of the Operating
Committee, and a list of officers, and if there exists any change
therein, it shall adjust and make entry of it.
CHAPTER VIII CONSTRUCTION DISPUTE CONCILIATION
COMMITTEE
Article 65 (Functions of Committee)
The term "other disputes on matters determined by the Presidential Decree" in Article 69 (2) 6
of the Act refers to-
1. dispute between a contractor or subcontractor and a third person over the price of materials
and the rental of construction equipment;
2. dispute on a transfer of the construction business;
3. dispute on the liability for the defect warranty of the contractor under the provisions of
Article 28 of the Act; and
4. dispute on the liability for damages of a constructor under the provisions of Article 44 of the
Act.
Article 66 (Request for Conciliation)
Any person who wishes for a conciliation on the dispute falling under each subsection of
Article 69 (2) of the Act, shall make a
request to the Committee in writing (including electronic
documents) by specifying the purpose of and details of the request under
the conditions as
prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.
Article 66-2 (Jurisdiction of Committee)
The term "public institution prescribed by the Presidential Decree" in Article 69-2 (1) 1 of the
Act refers to the public institution
under Article 4 (1) of the Act on the Management of Public
Institutions.
[This Article Newly Inserted by Presidential Decree No. 20488, Dec. 28, 2007]
Article 67 (Duties of Chairperson)
(1) The chairperson shall take charge of general affairs of the Committee and represent it.
(2) If the chairperson is unable to
perform his/her duties for unavoidable reasons, the-vice
chairperson shall act on behalf of him/her, and if both the chairperson
and the vice-chairperson
are absent due to unforeseeable circumstances, the member designated by the chairperson shall
act in proxy
for the chairperson.
Article 68 (Members of Committee)
(1) Public officials who become members of the Central Construction Dispute Conciliation
Committee (hereinafter referred to as the
"Central Committee") under Article 70 (2) of the Act,
shall be the following persons, who are designated by the head of each agency
concerned:
1. One level 3 public official, or high-ranking public official in general service area belonging
to the Ministry of Land, Transport
and Maritime Affairs; and
2. One level 3 public official, or high-ranking public official in general service area, for each
ministry or commission, belonging
to the Ministry of Strategy and Finance, the Ministry of
Government Legislation, and the Fair Trade Commission.
(2) Public officials
who become members of the Local Construction Dispute Conciliation
Committee (hereinafter referred to as the "Local Committee") under
Article 70 (2) of the Act
shall be the following persons, who are designated by the head of each agency concerned:
1. Three persons from level 3 public officials, level 4 public officials, or high-ranking public
officials in general service area
in the City/Do in which the Local Committee is established;
and
2. One person for each agency from public officials in level 4 or higher, or high-ranking public
officials in general service area
belonging to agencies under the Ministry of Land, Transport
and Maritime Affairs, the Fair Trade Commission, and the Public Procurement
Service.
(3) Any person falling under any of the following subsections shall not be a member of the
Committee: 1. Any person who has been declared bankrupt, but not yet reinstated;
2. Any person who is declared incompetent or quasi-incompetent;
3. Any person whose qualification is suspended by court's ruling, or by Acts; and
4. Any person who was sentenced to a punishment of imprisonment, and for whom three years
have not passed since the execution of
such sentence was terminated or exempted, or any
person who was sentenced to the probation of execution of sentence, and is still
under such
probationary term.
Article 68-2 (Exclusion, etc. of Members)
(1) If any member falls under any of the following cases, he/she shall be excluded from
execution of duties;
1. Where a member, his/her spouse, or former spouse has become a party of the relevant
dispute, or has relationship with a party
to the relevant dispute as a joint right holder or joint
obligator;
2. Where a member has, or formerly had a family relation with a party to the relevant dispute;
3. Where a member has made a statement or an appraisal with respect to the relevant dispute;
4. Where a member is, or formerly was concerned with the relevant dispute as a representative;
and
5. Where a member has been interfered with a disposition or forbearance, which has caused
the relevant dispute.
(2) In the case where there is a cause for exclusion, the Committee shall, upon the request of a
party to a dispute or by authority,
make a determination of exclusion.
(3) In the case where there is special situation in which it is difficult to expect fair execution
of
duties from (a) member(s), a party to a dispute may request for an evasion, and the Committee
shall, when it is deemed reasonable,
make a determination of evasion.
(4) In the case where a member falls under the reasons stated in section (1) or (3), he/she may
avoid the execution of his/her duties related to the event.
[This Article Newly Inserted by Presidential Decree No. 20488, Dec.
28, 2007]
Article 69 (Request for Appraisal, etc.)
(1) If it is deemed necessary for examining the case for which a conciliation of a dispute is
requested, the chairperson may request
any appraisal, diagnosis, test, etc. to the relevant
specialized institution.
(2) Any institution which is requested to make an appraisal, diagnosis, test, etc. under section
(1), shall submit the result thereof
within twenty days after receiving a request. In this case, if
there is any special situation that it is impossible to submit such
result within twenty days, it
shall notify the Committee of the reason and the period for submission thereof.
Article 69-2 (Public
Institution Subject to Dispute Conciliation)
The term "public institutions prescribed by the Presidential Decree" in Article 72
(3) of the Act
refers to the juristic persons invested or contributed by the State or local governments.
[This Article Newly Inserted
by Presidential Decree No. 18918, Jun. 30, 2005]
Article 70 (Procedures for Hearing of Opinion)
(1) If the Committee intends to have parties or experts concerned attend its meeting and listen
to their opinions under the provisions
of Article 75 (2) of the Act, it shall notify them in writing
seven days prior to the meeting.
(2) If there are any special situations making it impossible to attend a meeting of the Committee,
the respective party or expert
that received notification as referred to in section (1), may submit
his/her opinion in advance in writing (including electronic
documents).
(3) If the party or expert concerned, who received notification as referred to in section (1), fails
to attend the meeting without
any justifiable reason, or submit in writing (including electronic
documents) his/her opinion, he/she shall be considered to have
given up the opportunity to state
his/her opinion.
(1) When the chairperson receives a request for conciliation under Article 66, he/she may, if
necessary, refer a case for which
a conciliation of dispute is requested to a conciliation division
under Article 76 (1) of the Act.
(2) The provisions of Articles 69 and 70 shall apply mutatis mutandis to the affairs of the
conciliation division as referred to
in section (1).
Article 72 (Prepayment and Adjustment of Expenses)
(1) In the event that the Committee intends to have the expenses
required for dispute
conciliation be prepaid under Article 79 (2) of the Act, it shall notify the persons liable for such
payment
in writing of the required expenses, details of expenses, prepayment place, and period
for prepayment after determination thereof.
(2) In the case where the Committee has notified the prepayment of expenses under the
provision of section (1), if the obligor fails
to prepay the expenses within the prepayment period,
the Committee may suspend the conciliation on the dispute concerned.
(3) If
the Committee has received prepayment of expenses under the provisions of Article 79
(2) of the Act, it shall prepare a statement
of accounts concerning the prepaid amount and
expenses in accordance with section (1) and notify thereof to the requesting person
within five
days after a proposal of conciliation on the dispute has been prepared and presented to the party,
or after it has
notified a refusal or suspension of conciliation.
Article 73 (Scope of Expenses)
The scope of expenses responsible by a requesting person or a party of the dispute conciliation
under Article 79 (1) of the Act
shall be-
1. expenses required for appraisal, diagnosis, and test;
2. expenses required for selection of witnesses and evidence;
3. expenses required for inspection and investigation; and
4. other expenses required for conciliation such as recording, stenographic record,
interpretation, etc.
Articles 74 & 75
(1) The Committee shall appoint an executive secretary and a clerk in order to manage the
affairs thereof.
(2) The executive secretary and clerk of the Central Committee shall be appointed by the
Minister from public officials under his/her
jurisdiction, and the executive secretary and clerk
of the Local Committee shall be appointed by the Mayor/Do governor from public
officials of
the City/Do concerned.
Article 77 (Allowances)
Members and related experts who attend a meeting of the Committee may receive allowances
within the limit of the budget: Provided,
That this shall not apply in the case where a member
who is a public official attends the meeting which is directly related with
affairs under his/her
control.
Article 78 (Detailed Rules for Operation)
Excluding the matters prescribed by this Decree, matters necessary for the operation of the
Committee shall be determined by the
chairperson upon resolution of the Committee.
CHAPTER IX ORDER OF CORRECTION, ETC.
Article 79 (Criteria for Construction Work Performance)
(1) The term "amount as determined by the Presidential Decree" in the text
of Article 82 (1) 2
of the Act refers to the following amount: 1. For engineering work business, building work business, or landscape gardening work
business: two hundred and fifty million won;
2. For civil engineering and building work business: five hundred million won;
2-2. For industrial or environmental equipment work
business: six hundred million won; and
3. For specialized construction business (excluding the second class and the third class of the
work of installing gas facilities
and the work of installing heating system): fifty million won.
(2) The term "where there exist any justifiable causes as determined
by the Presidential Decree"
in the proviso of Article 82 (1) 2 of the Act refers to any of the following cases:
1. Where the suspension period of business due to a disposition of business suspension is at
least six months; and
2. Where an illegitimate person is prohibited from participating in a bid for at least six months
under the Act on the Contracts
to Which the State is a Party and its Enforcement Decree.
Article 79-2 (Temporary Substandard for Registration)
The term "cases
as determined by the Presidential Decree" in the proviso of subsection 2 of
Article 83 of the Act refers to the any one of the following
cases:
1. Where the period of being substandard for registration, caused by death, disappearance, or
retirement of a person who has the
technical capability as provided under Article 13 (1) 1,
does not exceed fifty days;
2. Where the period of being substandard for registration, caused by a decrease in the total
assets of a juristic person subject
to application of the proviso of Article 191-16 (1) of the
Securities and Exchange Act as of the end of its recent business year,
does not exceed fifty
days; and
3. Any of the following items among the cases of falling short of the capital standards under
Article 13 (1) 1:
(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 in
progress;
(b)
(2) The Minister may decrease or increase the period of business suspension or amount of
penalty, within the limit of one half of
the suspension period or amount of penalty in
accordance with section (1), upon consideration of the motives, contents, or frequency
of
offenses, characteristics of the construction works related to the offenses, the method of tender,
etc. Provided, That if it
falls under subsection 12 of Article 83 of the Act, the Minister shall not
decrease or increase the suspension period or amount
of penalty.
(1) In the event that the Minister intends to impose any penalty under the provisions of Article
82 of the Act, he/she shall notify
in writing to make payment of such penalty, describing the
classification of the act of violation and the amount of the penalty.
(4) The collecting agency shall, when it collects any penalty pursuant to the provisions of
section (2), promptly notify it to the
Minister.
(5) The penalty shall not be paid in installments.
[This Article Newly Inserted by Presidential Decree No. 16512, Aug. 6, 1999]
Article 82 (Institutions Subject to Sharing Information)
The term "financial institutions and credit information agencies prescribed
by the Presidential
Decree" in the first part of Article 85-3 (2) of the Act refers to-
1. mutual-aid association;
2. financial institutions under the Banking Act;
3. insurance companies under the Insurance Business Act; and
4. credit information companies under the Use and Protection of Credit Information Act.
[This Article Newly Inserted by Presidential
Decree No. 20488, Dec. 28, 2007]
Article 82-2 (Public Institutions Subject to Inspection and Confirmation)
The term "public institutions
prescribed by the Presidential Decree" in Article 86-2 of the Act
refers to the juristic persons invested or contributed by the
State or local governments.
[This Article Newly Inserted by Presidential Decree No. 18918, Jun. 30, 2005]
CHAPTER X SUPPLEMENTARY
PROVISIONS
Article 83 (Construction Works Subject to Subscription of Retirement Mutual-Aid
Program for Construction Workers)
(1) The term "construction work as prescribed by the Presidential Decree" in Article 87 (1) of
the Act refers to any construction
work stated in the following subsections:
1. A construction work for which an order is placed by the State or a local government and
whose expected work amount (referring
to the expected amount of relevant construction
work in the case of construction work for which a contract is renewed every year
based on a
long-term contract under Article 21 of the Act on Contracts to Which the State is a Party;
hereafter in subsection 2,
the same shall apply) is at least five hundred million won;
2. A construction work for which an order is placed by a corporation established with equity
investments from the State or local
governments, and whose expected work amount is at
least five hundred million won;
2-2. A construction work which is ordered by a corporation, for which at least fifty percent of
the paid-in capital is invested
by the corporation stated in subsection 2, and whose work
amount is at least five hundred million won;
3. A construction work which aims to construct collective housing of not less than 200 houses
after obtaining approval for its project
plan under the provisions of Article 16 (1) of the
Housing Act;
4. A construction work which is executed as a privately invested project under the Act on
Private Participation in Infrastructure,
and whose expected work amount is at least five
hundred million won;
5. A construction work (including the case where the approval of business plan is obtained
under Article 16 of the Housing Act) to
construct mixed-use buildings (including one
building structure of multiple connected buildings), which include two hundred or more
housing units (referring to collective housing under the Enforcement Decree of Housing
Act) and facilities for other purpose than
for housing; and
6. A construction work of studio apartment building of two hundred or more units among
general business facilities under the Enforcement
Decree of the Building Act.
(2) The parties to a contract for construction works under the provisions of section (1) shall
calculate
the amount required for the subscription of the retirement mutual-aid program for
construction workers, and specify thereof in a
detailed statement for the calculation of a
contract amount of construction works.