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National Assembly Legislation

  • Construction Machinery Management Act
    • Competent Ministry : Ministry of Land, Infrastructure, and Transport
    • Advance Publication of Legislation : 2019-04-11
    • Opinion Submission Deadline : 2019-04-25
Reasons for Proposal

The current Act requires that a construction machinery lease contract shall be entered into between an owner of construction machinery and a construction business entity and imposes penalties on a party who violates it.
However, since there is no basis for prohibiting or punishing the activities of a construction machinery rental business entity to take a lease of construction machinery other than those owned by the business entity and then lease them again, sales activities without legal basis such as inducing small rental business entities to receive low rents using works as a pawn by entering into illegal multi-level contracts such as a sublease are destroying the order of the construction machinery rental business market.
Therefore, it is inconsistent with the current Act that a construction machinery rental business entity leases construction machinery of another rental business entity, and it is necessary to protect small construction machinery business entities by prohibiting such activities that encourage the illegal reduction of the lending price.
Also, while an owner of the construction machinery shall register with the head of a Si/Gun/Gu the documentary evidence of the ownership of construction machinery and the confirmation of owning a parking ramp and an office to carry out the construction machinery rental business, there are paid transportation and unauthorized rental businesses after registering dump trucks and concrete mixer trucks as for private use. Thus, the amendment aims to protect small rental business entities whose revenues are decreasing due to the oversupply of the machinery by clearly stipulating the provisions to restrict the paid transportation and lending business of private construction machinery and allowing punishment for such activities.

 

Details

A. When leasing construction machinery, prohibit a construction machinery rental business entity to rent construction machinery of other rental business entities other than its own construction machinery (Article 25-3 newly inserted)
B. Prohibit owners or users of private construction machinery to provide or lease the private construction machinery for paid transportation and construction works (Article 33-4 newly inserted)
C. Punish a construction machinery rental business entity if it leases construction machinery of other rental business entities, namely other owners (Article 35-2 (1) 6)
D. Punish a person if he/she provides or leases private construction machinery for paid transportation or construction works (Article 40, subparagraph 4-2)

Major Provisions

Obligations of Construction Machinery Business Entities (Article 25-3), Prohibition of Paid Transportation and Lease of Private Construction Machinery (Article 33-4), and Administrative Dispositions Against Construction Machinery Business Entities (Article 35-2)

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