On the 12th, the 'Partial Amendment Bill of the Information and Communications Construction Business Act' was Introduced as a Representative Proposal
[Asia Economy Reporter Minyoung Cha] A law has been established to restrict the participation of large companies with annual contract amounts exceeding 100 billion KRW in small-scale public sector information and communication construction projects.
On the 12th, Jo Seung-rae, a member of the Democratic Party of Korea, introduced the "Partial Amendment to the Information and Communication Construction Business Act" as the main proposer. The bill allows the President to set the criteria for large construction companies and the minimum contract amount that large construction companies can undertake. This means restricting the participation of large companies in construction projects ordered by the state, local governments, public institutions, and local public enterprises.
As of 2019, there were about 10,000 information and communication construction companies in the industry, with annual contract performance totaling approximately 15.3 trillion KRW. However, among them, 354 large companies with contract performance exceeding 100 billion KRW accounted for about 2.4 trillion KRW (15.8%). In similar fields such as construction and electrical construction, participation of large companies is restricted for projects below a certain scale based on the "Framework Act on the Construction Industry" and the "Electrical Construction Business Act."
Jo Seung-rae stated, "Until now, small-scale information and communication construction projects under 1 billion KRW were a competitive market among small and medium-sized construction companies, but due to changes in the industrial environment such as reduced facility investment and economic recession, large construction companies have expanded their activities even to small-scale information and communication construction projects," adding, "The survival rights of small and medium-sized construction companies are increasingly threatened."
He added, "If large companies win contracts even for small-scale projects, small and medium-sized information and communication construction companies will face more severe conditions as their survival rights are threatened," and "If the bill passes, the participation of large companies in small-scale public sector projects will be restricted, providing at least a minimum institutional protection for small and medium-sized information and communication construction companies."
Meanwhile, on April 5th, Jo Seung-rae attended the "Information and Communication Construction Business Policy Meeting" held by the Korea Information and Communication Construction Association at the Busan, Ulsan, and Gyeongnam branch offices, where he discussed current issues in the information and communication construction industry, including revitalization of the construction business and strengthening competitiveness.
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