(1) Reasons for Amendment
There have been not a few cases where the occupants of newly built multi-family housing face damages due to non-construction or poor construction, sparking a growing demand for strengthened quality control of multi-family housing in general through the strict management of poor-performing service providers. In this regard, Article 54 (1) 2 (a) of the Housing Act was amended to expand the presale restriction system, which was previously applied only to project operators whose business has been suspended under the Housing Act. Accordingly, this Amendment prescribes detailed implementation measures to smoothly implement the system, thereby preventing poor construction and enhancing the quality of multi-family housing.

(2) Major Provisions
A. Restrict presales by any project operator or contractor whose business has been suspended under the Enforcement Decree of the Housing Act or Framework Act on the Construction Industry, or who has received demerit points under the Enforcement Decree of the Construction Technology Promotion Act (Article 15, paragraph 3 amended).

1) As increasing numbers of occupants are facing damages due to non-construction and poor construction of multi-family housing, there is a growing demand for strict management of poor-performing service providers. Accordingly, the Housing Act was amended to expand the presale restriction system, which was previously applied only to project operators whose business has been suspended under the Housing Act (Article 54 (1) 2 (a) of the Housing Act; March 13, 2018).

2) Expand the scope subject to restriction from project operators pursuant to the Housing Act to project operators and contractors. Expand the grounds for presale restriction from business suspension pursuant to the Housing Act to business suspension pursuant to the Framework Act on the Construction Industry, and service providers who have received demerit points under the Construction Technology Promotion Act.

B. Specifically prescribe the level of presale restriction according to the period of business suspension and level of demerit points for project operators and contractors whose business has been suspended or who have received demerit points.

(3) Amendment Details
Partial Amendment to the Rule on Housing Supply

Partially amend the Rule on Housing Supply as follows.
Change Article 15, paragraph 3 as follows.
  ③ Where all requirements specified in the subparagraphs of paragraph 1 have been met but the project operator or contractor has had his or her business suspended in accordance with Attached Table 1 of the Decree or Attached Table 6 of the Enforcement Decree of the Framework Act on the Construction Industry, or has received demerit points in accordance with Attached Table 8 of the Enforcement Decree of the Construction, occupants may be recruited after reaching the construction process specified in the attached Table 4.
Newly insert attached Table 4 as per the attachment.

Addenda

Article 1 (Enforcement Date) This Rule shall enter into force on 9/14/2018.
Article 2 (Special Rules for the Timing of Decisions on Occupant Recruitment Period Restrictions) Where an agreement or contract specified in the attached Table 4, subparagraph 1, item (f) 1) or 2) has been entered into or contractor selection has been completed for a project prior to the enforcement of this Rule, and where, at the time of the agreement or contract or contractor selection, the registered project operator or contractor has a demerit score not less than the cumulative average specified in the attached Table 4, subparagraph 1, item (b) or 2 years have not elapsed since the end of a business suspension specified in item (c) of the same subparagraph, the person authorized to approve project plans may, if necessary with respect to the housing supply schedule of the place of business concerned, change the timing of decisions on occupant recruitment period restrictions to when a report on the commencement of construction works is filed. In this case, notwithstanding the provisions of the attached Table 4, subparagraph 1, item (f) 4), the relevant documents shall be submitted to the head of Si/Gun/Gu when the report on the commencement of construction works is filed.