Construction Business Registration in Korea

What is construction business registration and what trades exist?

Construction businesses are divided into trades for general works and trades for specialty works. Anyone starting a construction business must register by the prescribed trade with the Minister of Land, Infrastructure and Transport. Minor works may be done without registration — for general works, a single work with an estimated price under KRW 50 million, and for specialty works under KRW 15 million. Corporations in which the state or a local government holds 50% or more of the capital, and non-profit corporations, cannot apply.

What are the requirements?

(1) Registration standards: technical staff, capital (asset valuation for individuals), and facilities and equipment, as set in Appendix 2 of the Decree. Examples: civil engineering works — corporate capital of KRW 500 million or more; building works — KRW 350 million or more and at least 5 construction engineers in the building field (including 2 building engineers or intermediate-level or higher engineers), with asset valuation of KRW 700 million or more for individuals. Specialty trades have separate standards by trade and field.

(2) Guarantee-capacity certificate: a certificate confirming that guarantees can be provided for at least the standard capital amount, and the financial institution takes collateral or a cash deposit of 25% to 60% of the trade's capital.

(3) Office: must be in a building with a use approval under the Building Act and meet the location standards notified by the Minister.

(4) Other: any debarment from bidding or business suspension period must have elapsed.

(5) Disqualification: undischarged bankrupts, persons under guardianship, persons less than 3 years past completing a prison sentence for violating this Act or the Housing Act, and persons within a set period after registration was struck off (e.g. 10 years) cannot register; the same applies if an officer of a corporation falls under these grounds.

(6) Foreign individuals/corporations: those with a main office abroad must satisfy some of the registration standards, and cannot register if they fall under the same or similar disqualification grounds in their home country.

Which documents are needed?

The application form is submitted to the city/province governor or the registration agency (electronic submission allowed), with: (1) financial statements for a corporation, or an asset statement with proof for an individual; (2) the guarantee-capacity certificate; (3) a copy of the office lease if leased; (4) a statement of construction facilities; (5) a statement of technical staff. The receiving office checks the corporate registry, resident register extract or passport (overseas Koreans) through shared administrative information. Foreign persons and corporations have separate document rules.

What is the procedure?

(1) Choose the trade and check the standards (staff, capital, facilities, equipment, office) → (2) obtain the guarantee-capacity certificate → (3) submit the application and documents → (4) review (with an on-site check of capital, facilities and equipment or a financial-management diagnosis where needed) → (5) the registration certificate and registration booklet are issued → (6) within 6 months, take the ethics and practice training (at least one registered officer for a corporation).

How long does it take?

This review did not confirm a statutory processing period, so no number of days is given. The Decree says registration must be granted unless the standards are not met, a disqualification applies or another restriction is violated, and the reason is notified if registration is refused.

Which authority receives the registration?

The registration authority is the Minister of Land, Infrastructure and Transport, but the application is submitted to the city/province governor or the registration agency.

What is the statutory fee?

The registration fee is KRW 60,000 for civil engineering, building and landscape works, KRW 90,000 for civil-and-building works and industrial/environmental plant works, and KRW 20,000 for specialty works (excluding gas heating works). Reissuing the certificate costs KRW 2,000. The basis is Article 38 and Appendix 5 of the Enforcement Rule, payable by revenue stamp or electronic payment. (Enforcement Rule effective 2026-01-02. Financial-institution costs such as guarantee certificates and private service fees are not statutory fees and are excluded.)

Why is a registration rejected or supplementation requested?

Reasons confirmed in the law: staff, capital, facilities, equipment or office standards not met, a missing guarantee-capacity certificate, a disqualification ground (including officers), or a debarment/suspension period not yet elapsed. A disqualification ground can lead to refusal without an on-site check. After registration, not starting business within 1 year or suspending for 1 year or more while below the standards is a ground for striking off the registration. Operating without registration can lead to up to 5 years' imprisonment or a fine of up to KRW 50 million.

What can an administrative attorney help with?

YouSun Administrative Attorney prepares and submits application or report documents on your authorization. Work restricted by other laws cannot be handled, and litigation or court representation is lawyer work and is not offered. Approval, registration or acceptance, and the outcome, are decided by the competent authority.