Construction machinery administration

Requirements for Registering a Construction Machinery Rental Business — Storage Yard Area, Location and Access Road, and Required Documents

To run a business renting out construction machinery such as excavators, forklifts, dump trucks and cranes, register a construction machinery rental business with the city, county or district (si/gun/gu) office for the location of the office. A business with 4 or fewer units is an individual construction machinery rental business and one with 5 or more units is a general construction machinery rental business. In either case you must own, or secure the right to use, a storage yard (jugijang) with an area matching the number of units held. Whether registration is possible is mostly decided by the storage yard land, so check the lot number before signing a land contract.

Procedure

  1. 1. Decide between the individual and general types

    If a single individual or corporation operates 4 or fewer units, it is an individual construction machinery rental business. With 5 or more units, it is a general construction machinery rental business. Where two or more individuals or corporations run a general rental business jointly, each member must own construction machinery, the application is made in the representative's name, and a contract setting out the rights and obligations among the members is attached.

  2. 2. Check the storage yard land

    The storage yard must be on land that does not conflict with other statutes, such as the Farmland Act and the National Land Planning and Utilization Act, and on which a storage yard is allowed. The ground must be level and suitable for parking construction machinery, and the access road must allow construction machinery and transport trailers to enter and leave without hindrance. Before signing a lease, first check the use zone and the access road by lot number.

  3. 3. Match the storage yard area and location

    The required area is calculated as 24 m² × (number of construction machinery units other than tower cranes)^0.815, and 1 crawler-type unit is counted as 0.5 units. For example, 5 wheeled units require about 89 m². In principle the office and the storage yard are located in the same city or county (si/gun), where the office is in a metropolitan city, city or county, the storage yard may be located in a metropolitan city, city or county adjoining it, and where the office is in a special city, it may be located in Incheon Metropolitan City or Gyeonggi-do.

  4. 4. Obtain the confirmation certificate of possession of storage yard facilities

    Have the confirmation certificate of possession of storage yard facilities issued by the city, county or district (si/gun/gu) office where the storage yard is located. If the office and the storage yard are in the same city, county or district, an application for confirmation submitted with the registration application can take its place. Install a storage yard sign at the yard in a place easily seen by the public.

  5. 5. Apply for registration and receive the registration certificate

    Attach the documents to the application for registration of a construction machinery rental business and submit it to the city, county or district (si/gun/gu) office for the location of the office. The processing period is 10 days, and the registration certificate is issued after compliance with the registration standards is confirmed. If there are two or more offices, register separately with the competent city, county or district office for each office.

Required documents

  • Application for registration of a construction machinery rental business
  • Documents proving ownership of the construction machinery (construction machinery registration certificate, etc.)
  • Documents proving ownership of or the right to use the office (lease contract, etc.)
  • Confirmation certificate of possession of storage yard facilities (issued by the city, county or district (si/gun/gu) office where the storage yard is located)
  • Copy of the contract among the members, in the case of joint operation

Fees

Agency fees for a preliminary review of the storage yard and the registration application are generally around several hundred thousand won in the industry, and vary with the number of units and how the storage yard is secured. We will advise after a consultation, based on the lot number of the land and the list of equipment.

Legal basis and review date

  • Construction Machinery Management Act, Article 21
  • Enforcement Decree of the Construction Machinery Management Act, Article 13
  • Enforcement Rule of the Construction Machinery Management Act, Article 57
  • Enforcement Rule of the Construction Machinery Management Act, Article 58
  • Enforcement Rule of the Construction Machinery Management Act, Article 59 and attached Table 14

Checked against the statutes on

Statutes and public notices change, so each case needs to be checked individually. Statute titles are given in English for reference. The Korean statutes are the authoritative text.

Check these first

  • Before paying the deposit on a land contract for the storage yard, check by lot number whether a storage yard can be established there and check the access road. If the requirements turn out not to be met after the contract, the contract is hard to undo.

Frequently asked questions

Do I have to register a construction machinery rental business even with just 1 excavator?
Yes. Anyone running a business of renting out construction machinery registers regardless of the number of units. With 4 or fewer units, register as an individual construction machinery rental business. Renting out machinery together with an operator is also included in rental business.
Can a construction machinery rental business be registered without a storage yard?
No. Both the individual and general types must own, or secure the right to use, a storage yard with an area matching the number of units held. A storage yard may be shared with another rental business operator, and in that case the area is calculated on the total number of units of the businesses sharing it.
My office is in Incheon. Can the storage yard be in another region?
Yes, subject to conditions. In principle the office and the storage yard are located in the same city or county (si/gun), and where the office is in a metropolitan city, city or county, the storage yard may be located in an adjoining metropolitan city, city or county. A region that does not adjoin does not meet the registration standards.
Can land with a bare earth surface be used as a storage yard?
It depends on the condition of the ground. A storage yard must have level ground suitable for parking construction machinery, so land that sinks or collects water must be repaired first. The access road must also allow transport trailers to enter and leave.
How long does construction machinery rental business registration take?
The processing period for the application is 10 days. However, the confirmation certificate of possession of storage yard facilities must be obtained first, so include the time for the storage yard confirmation when setting the schedule.
Does an administrative agent handle construction machinery rental business registration?
Yes. Hwang Yunsang Administrative Office reviews the use zone and access road of candidate storage yard sites, calculates the storage yard area, applies for the confirmation certificate of possession of storage yard facilities, and prepares and files the application for rental business registration on your behalf.

Contact us

Hwang Yunsang Administrative Office in Songdo, Incheon prepares and submits administrative documents and explains the procedure. If your situation is similar, send us a message.

📍 2697, 26F POSCO Tower-Songdo, 165 Convensia-daero, Yeonsu-gu, Incheon, Republic of Korea · 📞 010-3374-2687 · 🌐 hwangadmin.com

This guide is general information based on public sources. Requirements, documents and deadlines differ by case and by the competent agency, so please confirm them before you proceed.