• Korean Journal of Construction Engineering and Management
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• v.14 no.2
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• pp.184-193
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• 2013

Procurement System for Korean construction industry has mainly been controlled by the complicated regulatory system which has been recognized as unflexible and remotely separated from the global standard. This has been identified by many Korean construction experts as one of the main reasons that hamper the Korean construction industry becoming the global leader. One commonly discussed regulatory system is the compulsory multiple contracting system that has been enforced for a long time. According to the Korean governmental contracting law 68-3, all construction projects cannot be divided into separate contracting packages with a few exceptions. Exceptions stated in the law include construction activities related electrical, Information communication, fire-fighting, and cultural assets which all are governed by the separate laws/acts controlled by the different governmental bodies. This research is to closely investigate multiple prime contracting system that has been compulsory in Korean construction industry and to provide policy recommendations to these restrictions. Although, there has been a long history of this compulsory contracting system, this study attempted to provide objective analysis on current status of the system as well as global standard on the issue. This study suggests main considerations when considering different contracting system such as rights of owners, flexibilities of regulatory systems, and efficiencies of conducting a construction project. It is envisioned that recommendations from this study, if accepted by the regulatory bodies, would improve the Korean construction contraction system by making it more compatible with global standard. Moreover, these would help making the Korean industry more effective in terms of regulatory restrictions.