Facility Maintenance Business 'Industry Conversion' Surpasses 30%... Apply This Year for Increased Benefits

It has been revealed that the pace of business category conversion in the facility maintenance industry, which has been in effect since July 1, is accelerating.

According to the Ministry of Land, Infrastructure and Transport on the 20th, as of the 17th, 2,185 facility companies have pre-applied for business category conversion out of a total of 7,197 eligible companies (30%).

Until October, an average of 33 companies per week submitted pre-applications, and in November, 160 companies did so. However, this month, 338 companies have pre-applied, showing a rapid increase. The Ministry expects more than 3,000 companies to pre-apply for business category conversion by the end of the year.

The ongoing business category conversion in the facility industry is to guarantee that facility companies can continue their business by converting their category to general construction or specialized construction, as the validity period of the facility industry is stipulated to end on December 31, 2023.

To reduce the burden on businesses during the conversion process, the obligation to meet registration standards such as capital and technical personnel for the converted business category is being deferred for up to 8 years, supporting growth during the grace period.

In particular, companies that pre-apply this year and complete performance conversion will be granted the benefit of participating in bids for the converted business category with up to a 50% performance bonus starting January 1 next year.

If the business category conversion is applied for next year, the bonus rate for previous facility industry performance will be reduced to 30%.

Once the business category conversion and performance conversion are completed, companies can participate in bids under the converted category. Even after conversion, the status of the previous facility industry will be simultaneously guaranteed until 2023, allowing participation in facility industry bids as well.

Park Hyo-cheol, head of the Fair Construction Promotion Team at the Ministry of Land, Infrastructure and Transport, said, "The business category conversion in the facility industry is a measure to support former facility industry operators to continuously operate with expertise in response to the rapidly changing construction industry environment, such as the abolition of business area regulations. We hope that companies will promptly participate in the business category conversion to fully enjoy institutional benefits such as performance bonuses."