Ministry of Land, Infrastructure and Transport: "Over 50% Transition Rate in Facility Maintenance Business... Unexpected Speed"

The rate of business type conversion among facility maintenance companies has exceeded 50%.

The Ministry of Land, Infrastructure and Transport announced on the 3rd that, as of the end of last year, out of a total of 7,197 facility companies subject to conversion, 3,905 (54%) have changed their business type.

From July to November last year, when applications for business type conversion began, a total of 1,282 companies applied for conversion over five months. However, in December alone, 2,623 companies applied, showing a sharp increase in applications at the end of the year.

The Ministry explained, "This figure far exceeds the industry's initial expectations," adding, "It appears to be the result of recognizing that the earlier the business type is converted, the more advantageous the structure is for the operators."

The business type conversion for facility companies will continue this year as well. Facility companies qualified for conversion can apply to the construction business registration authority. Those wishing to convert to general construction must submit their application to the Korea Construction Association's provincial branch, while those converting to specialized construction should submit their application to the city, county, or district office where their business is located.

The facility business type conversion is scheduled to continue until December 31, 2023. However, if applying this year, up to 30% of the previous facility business performance will be added, whereas if applying in 2023, the added rate will be reduced to 10%.

Once the registration authority completes the business type conversion process and the performance conversion is finalized through the Construction Industry Knowledge Information System, companies can participate in bids for the converted business type.

Even if the business type is converted, if the previous facility business registration standards are maintained, the status as a previous facility business operator (bid participation qualification) will be recognized until December 31, 2023.

Park Hyo-cheol, head of the Fair Construction Promotion Team at the Ministry of Land, Infrastructure and Transport, said, "We will also focus on listening to difficulties to ensure that facility companies that have converted their business type can settle early in their new business and operate smoothly.

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