Amid the recent deterioration of the internal and external environments of the construction industry, there have been increasing cases of bankruptcy and insolvency among constructors.

The “temporary construction equipment (e.g., pipe supports) rental business” is a particularly vulnerable sector of the construction industry. It has been affected by ongoing incidents involving unpaid rent due to low winning bids by constructors resulting in business deterioration, bankruptcy, or insolvency, etc. However, the current Act does not prescribe protective mechanisms, such as a payment guarantee system, for temporary construction equipment rental operators.

Accordingly, the Amendment requires any contractor or subcontractor who has entered into a rental agreement with a temporary construction equipment rental operator to guarantee rent payments and prescribes that non-compliance may be addressed by a correction order or business suspension, thereby protecting the interests of the temporary construction equipment rental business and promoting sound development of the construction industry (Article 68-4; Article 81, subparagraph 4; and Article 82, paragraph 1, subparagraph 8).

Require any contractor or subcontractor who has entered into a rental agreement with a temporary construction equipment rental operator to guarantee rent payments; and allow non-compliance to be addressed by a correction order or business suspension (Article 81, subparagraph 4 and Article 82, paragraph 1, subparagraph 8)