Ministry of Land, Infrastructure and Transport
Building Act, Framework Act on the Construction Industry
The filing company is a developer of an integrated resort in Jeju. The related approval for construction has been obtained. Considering the possibility of changing development plans of ground floors and other business plans, the company would like to separately order construction works for civil engineering and the building, and first start with civil engineering works.
This means that while there is no construction contract for the building, the company would like to separately proceed with civil engineering works and building construction by first concluding contract for civil engineering works and report on its commencement of construction.
Since there is no precedent of the separate reporting on commencement of construction, the local government has requested the opinion of the Ministry of Land, Infrastructure and Transport (MOLIT) on the matter.
The parent company of the filing company has strongly asked for resolution citing the cases in foreign countries where separate construction orders in phased-development projects and large-sized projects are taken as a norm.
Resoultion and Results
The Office of Foreign Investment Ombudsman (OFIO) has contacted MOLIT to explain on the situation of the filing company and sent necessary information.
MOLIT officially replied that separate reporting on the commencement of construction is allowed and notified that the filing company should report on the modification of constructor under the Article 11-2 of Enforcement Rule of the Building Act when reporting on the construction of building after completing the civil engineering works.
The filing company expressed satisfaction upon receiving the ministry’s reply and notified that it will promptly file the commencement of construction at the local government.