Construction Business Operators Face Up to 200 Million KRW in Penalties... Ministry of Land, Infrastructure and Transport Announces Draft Amendment for Public Comment

[Asia Economy Reporter Moon Jiwon] The Ministry of Land, Infrastructure and Transport announced on the 18th that it will publicly announce the amendment bill of the 'Framework Act on the Construction Industry' and subordinate statutes from the 19th, which includes easing unnecessary construction regulations and strengthening penalties for illegal activities at construction sites.

First, the Ministry of Land has established grounds to defer mandatory construction industry training by setting a grace period in cases where it is impossible to complete the training due to force majeure such as infectious diseases like COVID-19 or natural disasters.

The scope of gas facility construction work has also been updated. Considering the safety of specific gas usage facilities among city gas facilities, installation of hot water boilers and water heaters with a capacity of 50,000 kcal/h or less, which is the scale used in general households, will be carried out by gas facility construction businesses to enhance user convenience.

Outstanding small and medium-sized construction companies will be given preferential treatment in the employment evaluation of construction workers. Excellent small and medium enterprises selected as leading companies in construction innovation through active employment of regular and young workers will be awarded additional points (0.5 points) in the construction worker employment evaluation.

Additionally, the upper limit of fines imposed as a substitute for business suspension when construction operators violate their obligations will be increased (from 100 million KRW to 200 million KRW) in accordance with the increase in contract scale, thereby making the substitute fines for business suspension more realistic.

Subcontracting to unregistered businesses will be added to the 'three strikes out' system. Currently, construction businesses that receive penalties for illegal subcontracting and violate the rules two or more times within five years are deregistered under the 'three strikes out' system. However, subcontracting to unregistered businesses, which hinder proper construction, has been excluded, and this will now be included in the 'three strikes out' system.

The public announcement period is from the 19th to the 28th of next month. After consultations with related agencies, regulatory reviews, and legal inspections, the Framework Act on the Construction Industry will be submitted to the National Assembly, and the subordinate statutes are scheduled to be finalized and promulgated by June.

Kim Geun-oh, Director of the Construction Policy Division at the Ministry of Land, said, "We will continue to promote regulatory innovation to enhance construction economic vitality by resolving corporate difficulties caused by the prolonged COVID-19 pandemic and presenting proactive regulatory reform measures for the leap of the 4th Industrial Revolution."

This content was produced with the assistance of AI translation services.