How does the procedure for the transfer and acquisition of a construction business proceed?

A transfer and acquisition of a construction business is not completed merely by concluding a contract; its effect is recognized only after carrying out a public notice, association procedures, and a report to the administrative agency.

To proceed with a transfer and acquisition of a construction business under the Framework Act on the Construction Industry, you must go through the following procedures.

1. Resolution to transfer the construction business and conclusion of the contract

The transferring corporation resolves to transfer the construction business through a resolution of the shareholders' meeting, and the transferor and the transferee prepare a construction business transfer contract.

2. Public notice of the transfer

The transfer of the business is announced in a daily newspaper or disclosed on the Korea Specialty Contractors Association website for 30 days or more, to notify interested parties such as creditors.

3. Confirmation regarding construction works and the mutual aid association

If you are a member of a mutual aid association, you must obtain a written opinion from the association, and if there is construction work in progress, you must proceed with the succession of rights and obligations with the consent of the ordering party.

4. Report of the transfer and acquisition of the construction business

Once the preparatory procedures are completed, you file a report of the transfer and acquisition of the construction business with the competent local government and notify the Korea Specialty Contractors Association of the transfer.

5. Carrying out association-related procedures

The transferee carries out association procedures for operating the construction business, such as applying for a construction capability evaluation and a management status evaluation.

In addition, both the transferor and the transferee must meet the construction business registration criteria, such as capital, technical personnel, the guaranteeable amount, and an office, and if the requirements are not met during the course of the procedure, the report may be rejected.

Daeryun Law LLC's Corporate Legal Affairs Group comprehensively reviews the entire process in the transfer and acquisition of a construction business, from reviewing the contract structure to the public notice procedure and reports to the association and administrative agencies, to support the transfer and acquisition of the construction business proceeding in accordance with the statutes.

In addition, legal experts such as corporate legal affairs attorneys, accountants, and tax accountants collaborate to review together whether the construction business registration criteria are met and issues of succession of rights and obligations, thereby assisting with the management of legal risks.