Seoul Administrative Court Dismisses Administrative Lawsuit Opposing Abolition of Facility Maintenance Business
Ministry of Land, Infrastructure and Transport: "Facility Management Industry Transition Scheduled by 2023 to Proceed Smoothly"
[Asia Economy Reporter Minyoung Kim] The Ministry of Land, Infrastructure and Transport announced on the 17th that the Seoul Administrative Court dismissed the administrative lawsuit filed by the facility maintenance industry regarding the industry conversion of facility maintenance business on the 13th.
Last October, the facility maintenance industry filed a cancellation lawsuit, arguing that the Ministry of Land, Infrastructure and Transport's notice, the "Detailed Standards for Industry Conversion of Facility Business," stipulates the cancellation of facility business registration after January 1, 2024, directly affecting the rights and obligations of companies.
In response, the court ruled that the Detailed Standards for Industry Conversion of Facility Business only regulate the procedures for industry conversion delegated by law, and do not themselves govern specific rights, obligations, or legal relationships, and therefore are not subject to cancellation lawsuits.
Currently, according to the Basic Construction Industry Act and related regulations such as the Detailed Standards for Industry Conversion of Facility Business, the industry conversion of facility business has been progressing smoothly since July last year, and companies that have converted to general or specialized construction industries are actively continuing their contract activities in new areas.
According to the Ministry of Land, Infrastructure and Transport, as of the 7th, out of a total of 7,093 facility companies subject to conversion, 5,011 companies (approximately 71%) have completed the industry conversion.
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The Ministry of Land, Infrastructure and Transport plans to continue to steadily implement the facility business industry conversion policy scheduled until next year and to continuously monitor to ensure that a new market order is established within the construction market.
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