8,566 construction firms may be shut

Starting in mid-October, domestic construction companies that fail to meet the registration standard will be kicked out of the market.

The Ministry of Construction and Transportation, which has conducted a survey of insolvent contractors through local autonomous bodies and industry associations, reported that a total of 8,566 companies were found to have failed to meet the registration standard in terms of capital and technical manpower. The group includes 1,598 general contractors, and the ministry will take procedures to suspend their businesses.

A total of 37,948 construction companies -- 6,430 general contractors and 31,518 specialized construction firms -- are registered with the ministry. Among the general contractors, 472 firms are lacking in capital, and 816 companies have insufficient numbers of technical manpower. As for specialized contractors, 4,149 companies failed to meet the capital requirement, 4,996 firms are lacking in technical manpower, and 17 companies do not have required facilities.

Sin Yeon-Su ysshin@donga.com