Ministry of Land, Infrastructure and Transport Establishes Detailed Criteria for Facility Maintenance Business Type Conversion... Administrative Notice

Facility Maintenance Service Providers to Transition to General or Specialized Construction Business
Registration Standards Deferred Upon Transition, Previous Performance Added to Support Business Type Change
Administrative Notice Completed, Final Announcement Scheduled for June

[Asia Economy Reporter Kangwook Cho] The Ministry of Land, Infrastructure and Transport announced on the 9th that it will conduct an administrative notice from the 10th to the 31st regarding the establishment of the "Detailed Standards for Business Type Conversion of Facility Maintenance Industry" to support smooth business type conversion for facility maintenance companies in connection with the restructuring of the facility maintenance industry.

This establishment plan guarantees that facility maintenance companies can continue their business by converting their business type to general construction or specialized construction, following the amendment of the "Enforcement Decree of the Framework Act on the Construction Industry" on December 29 last year, which stipulates that the validity period of the facility maintenance industry is until December 31, 2023.

It also supports companies in meeting registration requirements during the grace period by deferring the obligation to meet registration standards due to business type conversion, and aims to add previous construction performance for early conversion to facilitate smooth business type conversion.

According to the detailed standards for business type conversion of the facility maintenance industry, which will be implemented immediately upon establishment, businesses that registered for the facility maintenance industry by September 15 last year or those who have met the registration standards and applied for registration can convert their business type to general construction (architecture or civil engineering) or specialized construction (three major maintenance-related categories).

Facility maintenance businesses that applied for preliminary business type conversion this year will have their business type converted starting January 1 next year, and those who apply after January next year will be considered converted from the date the construction industry registration authority completes the business type conversion process.

Construction businesses that have completed business type conversion and continue to maintain the previous registration standards of the facility maintenance industry can be recognized as previous facility maintenance businesses (eligible to participate in bids) until December 31, 2023.

To ease the burden, the obligation to meet additional registration standards such as capital and technical personnel due to business type conversion is deferred until December 31, 2026.

Among previous facility maintenance businesses, those whose 2025 construction capacity evaluation amount is below the average of the held business types in the third quarter of 2026 and whose average performance from 2023 to 2025 is less than 300 million KRW will have the obligation to meet registration standards further deferred by three years until December 31, 2029.

To maintain construction expertise, the construction performance of facility maintenance businesses is divided into civil engineering and architecture fields based on previous performance, and only the construction field of the converted business type is recognized as performance of the converted business type.

To encourage early business type conversion, the performance converted at the time of application for business type conversion can be added up to a maximum of 50%.

Facility maintenance businesses qualified for business type conversion can apply for business type conversion at the construction industry registration authority from the date of announcement of the notice (scheduled to be finalized in June after collecting opinions during the administrative notice period) until December 31, 2023.

Once the business type conversion process is completed, facility maintenance businesses can access the "Construction Industry Knowledge Information System" from August 1 to check previous performance and allocate and add performance to the converted business type.

However, if the business type conversion is not applied for by December 31, 2023, the facility maintenance industry registration will be automatically canceled according to Article 2 of the Supplementary Provisions of the amended Enforcement Decree of the Framework Act on the Construction Industry.

Park Jinhong, head of the Fair Construction Promotion Team at the Ministry of Land, Infrastructure and Transport, said, "We will provide policy guidance and consultations on difficulties to support smooth business type conversion for facility maintenance businesses and continuously listen to suggestions."

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