On September 15, the Ministry of Land, Infrastructure and Transport announced that revisions to the Construction Industry Law and the Saemangeum Project Law were approved during a Cabinet meeting.
The amendment to the Construction Industry Law grants the Minister of Land the authority to take administrative action against serious illegal subcontracting practices on construction sites. It also establishes grounds for reducing penalties for those who voluntarily report such violations. The new provisions are set to take effect four months after the law is promulgated.
Previously, penalties for illegal subcontracting had to be imposed within six months of detection, but the authority to enforce these penalties rested with local governments. Under the new regulations, the Ministry of Land will directly impose administrative actions based on factors such as the detection entity, subcontract amount, type of work, and progress rate.
Additionally, if a violation is voluntarily reported within the period specified by the Minister of Land and corrective actions are completed before the penalties are finalized, the penalties may be reduced by up to half of the business suspension or fine.
The amendment to the Saemangeum Project Law expands the scope of local companies eligible for preferential treatment and improves the method of supplying developed land. This amendment will take effect immediately upon promulgation.
Under the new provisions, contracts for construction engineering services under the Construction Technology Promotion Act will be included in the categories eligible for preferential treatment for local companies participating in the Saemangeum project. This aims to encourage greater participation from construction engineering firms based in North Jeolla Province.
To promote comprehensive development in Saemangeum, the method of supplying developed land will also be improved. The government plans to ensure procedural fairness while considering project proposals, designs, and other factors through a competitive bidding process.
Meanwhile, the Cabinet meeting is a key policy deliberation body composed of the President, Prime Minister, and Cabinet members, where important policies and issues are discussed and decided. The meeting requires a majority of its members to be present and decisions are made with the approval of at least two-thirds of those present.
* This article has been translated by AI.
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