What reporting is required to transfer a construction business?

A construction business is not merely business property but a business that must meet statutory registration requirements, so a transfer is not recognized on the basis of a mere contract alone.

Under Article 17 of the Framework Act on the Construction Industry, a person who intends to transfer a construction business must report to the Minister of Land, Infrastructure and Transport, and the actual procedure is carried out through the competent Mayor/Do Governor or an entrusted institution (such as the Construction Association of Korea).

The transferor and the transferee must jointly submit a report of the transfer of the construction business, and when reporting, they must attach ▲a copy of the transfer contract, ▲documents related to the transferee's registration, ▲the public notice of the transfer of the construction business and the results of opinion adjustment, ▲a written opinion of the mutual-aid association (if applicable), ▲the client's letter of consent (where there is construction work in progress), and the like.

In addition, the transferor must post a public notice in a daily newspaper or on the association's website based on the location of its principal place of business, and the notice must include the scheduled transfer date, the type of business, the deadline for interested parties to submit opinions, and the like.

Thereafter, once the Mayor/Do Governor confirms whether the transferee meets the registration requirements and the report is accepted, the transferee succeeds to the transferor's status in the construction business from that point.

Therefore, the transfer of a construction business is valid only after going through the administrative procedures of reporting, public notice, and acceptance, rather than a mere contract, and whether it is approved may vary depending on whether the transferee meets the registration requirements.

In practice, there are many cases of rejection due to missing documents or a missing public notice, so, before transferring the construction business, it is safe to have it reviewed by an attorney experienced in M&A matters or by an M&A advisory institution.

Daeryun, the ninth-ranked law firm in Korea (based on 2025 value-added tax filings with the National Tax Service), provides one-team legal services led by corporate legal affairs attorneys, so you are welcome to request advice at any time.