What Korean specialist construction capacity represents
An annual company assessment
Korea construction capacity valuation is a quantitative indicator of a contractor’s relative ability to perform construction work.
It combines recognized performance, management, technology and reputation rather than simply adding sales.
The amount is not cash in the bank, future profit or a universal ceiling for every contract or tender.
Prevent omissions before spending
A small specialist contractor may lose assessment credit through missing certificates, staff records or contribution evidence.
Use the four components to identify the evidence that changes a result and compare the limited effect of capital or staffing changes before committing funds.
The saved worksheet supports an association consultation; it is not an official assessment or filing.
Supported scope and pending results
One existing specialist sector
The calculator checks the regular 2026 assessment for one existing specialist construction sector and one primary field with at least three years of operation.
New registration, acquisition, merger, rehabilitation, workout, shared assessment across sectors or fields, and special founder retirement-contribution weighting are outside scope.
Mechanical/gas and other cases assessed by a different body require that body’s confirmation.
Unknown is different from zero
The total stays pending until recognized performance, capital, official statistics, staff, costs and every reputation item are confirmed.
Enter zero only after confirming no applicable amount; a blank value is unknown.
Overseas SME employment enhancement also stays pending because its special enhancement wording requires association review.
No official industry averages are prefilled; a fictional example must be replaced before real use.
Performance: recognized amounts and year order
Weighted three-year average
Let A1, A2 and A3 be recognized performance for 2025, 2024 and 2023 respectively.
The weighted average is W=(1.2A1+A2+0.8A3)/3, and performance valuation R=0.7W.
Reversing the order changes the result because the most recent year carries more weight.
Use accepted construction performance
Use amounts recognized for the relevant specialist sector, rather than all company revenue.
Direct-execution credits require the applicable statutory conditions and client confirmation.
If an accepted amount already includes such credit, do not add it again.
Management: capital and five financial scores
Real capital rather than registered cash
Real capital C starts with assets minus liabilities, with the applicable other-business adjustment for a mixed business.
Registered paid-in capital or a planned bank deposit is not automatically the same input.
Confirm the sector’s corporation minimum capital from Enforcement Decree Annex 2, including when the business itself is an individual proprietor.
Ratios, reverse direction and limits
For borrowing dependence divide the industry ratio by the company ratio; for interest coverage, equity, pre-tax net profit margin and total capital turnover divide company by industry.
Clamp each score to −3 through 3 and treat negative company interest coverage as zero.
Zero company borrowing with a positive industry average uses the limiting score of 3.
Nonpositive industry averages or an unresolved denominator are not automatically interpreted and keep the result pending.
Capital sign and management cap
Let S be the average of the five scores.
For positive C, management valuation is C×max(S,0)×0.8, limited by ±6×max(corporation minimum capital,R).
A negative average score gives zero ordinary management value; negative real capital gives −0.1R and zero capital gives zero.
Rehabilitation and workout have separate reduction provisions and are excluded from this ordinary calculation.
Verify the annual specialist industry data
Year, units and original source
Obtain all five industry average ratios and productivity per technical person applicable to the 2026 specialist construction assessment.
A data year and its assessment application year can differ; record the original document, publication date and application year.
Company and industry values must use identical units: interest coverage of 4 times is 400%, while capital turnover is entered in times.
Do not substitute general-construction statistics
General-construction industry averages are not interchangeable with specialist industry averages.
The calculator requires positive average values, the source record and an explicit confirmation before producing a total.
Fictional example ratios and productivity demonstrate arithmetic only and are not official 2026 data.
Technology: staff, contributions and eligible development
Weighted recognized staff and production cap
Weighted people N equals junior×1 + intermediate×1.15 + advanced×1.3 + special×1.5 + other eligible qualifications×1.
Confirm the sector registration qualification and holding-period evidence for each recognized person; do not invent a monthly proration.
Technology production is min(productivity×N×0.3,max(2C,0.5R)).
The special founder weighting is outside the supported scope.
Retirement contributions by functional grade
Multiply prior-year contributions by 5 without a functional-grade certificate, 7.5 for junior, 10 for intermediate, 12.5 for advanced and 15 for special.
Use the reporting year-end grade, choosing the highest grade when a person holds multiple occupational grades.
Avoid counting the same contributions twice; a blanket multiplier of ten does not preserve the current grade distinctions.
Construction research and development
Eligible three-year development investment is the amount actually used in construction from R&D statements submitted for the Article 10 Restriction of Special Taxation Act credit.
Training, equipment or ordinary expenditure is not automatically eligible.
Recognized development is min(eligible amount,max(C,0.5R)).
Technology valuation is capped production plus weighted contributions plus capped development.
Reputation additions: history, designations and employment
History and recognized designations
Construction technology, relevant environmental technology and outstanding-constructor designations each add 4% of W; multiple designations in the same field count once.
Operation in the same specialist sector adds 3% for 5 to under 10 years, 5% for 10 to under 20 years and 7% for 20 years or more.
Eligible prior-year technical training adds 0.02% per person, capped at 4%.
Employment, scaffolding and overseas records
Construction-worker employment ratings 1, 2 and 3 add 6%, 5% and 4% respectively.
Certified prior-year integrated scaffolding on private projects adds 2% below a 30% installation ratio, 3% from 30% to under 40%, and 5% at 40% or above.
No certificate is different from a certified ratio of zero.
Eligible reporting rewards add 4% per recognized prior-year payment.
Certified non-SME direct overseas employment adds 3% for 1–49 people, 4% for 50–499 and 5% for 500 or more; verify overseas registration, direct wage payments, at least three months of stay and the employment certificate.
SME overseas enhancement requires association review and produces a pending total here.
Reputation reductions and aggregate limits
Only the relevant sanctions and periods
Relevant suspension or equivalent penalty periods reduce W by 2% per month.
With a Ministry mortality reduction request, a mortality multiple from 1 through 1.5 reduces by 5%, above 1.5 through 2 by 7%, and above 2 by 9%.
Bankruptcy within three years and prior-year persistent wage-arrears disclosure each reduce by 30%; the relevant fair-trade penalty reduces by 7%, and serious-accident punishment by 10%.
Orders, false documents and the final rate
The specified payment correction order reduces by 4%, and the other specified correction orders reduce by 4% per occurrence.
False-document submission reduces by 60% for three assessment years starting with the year after the finding.
Add all applicable rates, cap the result between −50% and 50%, or use a −60% lower limit when the false-document provision applies, then multiply by W.
Item (6) is repealed; review all remaining items (1) through (17) and confirm the entire checklist.
Worked fictional example in KRW
Four components and total
Recognized performance of KRW 1,000,000,000, 800,000,000 and 600,000,000 gives W of approximately KRW 826,666,667 and R of approximately KRW 578,666,667.
Real capital of KRW 200,000,000 and an average score of 1 give management value of KRW 160,000,000.
Fictional productivity of KRW 500,000,000 and two junior people give production of KRW 300,000,000.
KRW 1,000,000 contributions without a certificate become KRW 5,000,000; eligible development of KRW 10,000,000 and zero reputation give a displayed total of KRW 1,053,666,667.
Independent changes, not additive promises
Restoring KRW 100,000,000 of prior-year performance increases this example by KRW 28,000,000.
Adding KRW 50,000,000 real capital increases it by KRW 40,000,000; adding one recognized junior person increases it by KRW 100,000,000 because the production cap applies.
These are separate scenarios with other inputs and financial ratios unchanged, not a combined forecast.
Example statistics, qualifications and confirmations are fictional and do not establish official recognition.
Step-by-step disclosure comparison
Confirm inputs before reviewing differences
First confirm the sector, primary field and years of operation, then enter the three recognized annual performance amounts.
Next match real capital, the corporation minimum, company and industry ratios and productivity to original records.
Review staff, grade-specific contributions, development investment and every reputation item, entering confirmed non-applicable amounts as zero.
Read the sign and the source unit
Enter the four published components and the published total in KRW; convert disclosures in thousands of won by multiplying by 1,000.
Each difference is estimate minus published: a positive difference means the estimate is higher.
The final valuation is max(0,R+management+technology+reputation).
Calculations retain precision and only display rounds to whole KRW; authority truncation or recognition decisions can differ.
Changing inputs hides the previous result until you recalculate; save the worksheet after comparing independent changes.
Evidence and the next filing or correction action
Connect records to assessment components
Prepare performance certificates, contracts or subcontracts and the applicable tax-invoice evidence.
Group financial statements and mixed-business adjustments, qualification and holding-period records, functional-grade certificates, contribution statements and three-year R&D evidence by component.
Keep original designation, training, sanction, request, employment-rating and reward records together with the published four-component assessment.
Confirm actual filing arrangements
Rule Article 22 sets a basic performance filing date of February 15; financial records are due April 15 for corporations, May 31 for individuals, or June 30 for eligible verified-income filers.
Check the actual assessment-year notice, holiday treatment and availability of corrections or reassessment directly with the association.
The calculator neither files documents nor extends deadlines or approves corrections.
Use the TXT evidence list to ask what is recognized and what can still be submitted.
Weight reference
Technical-person and retirement-contribution grade weights| Grade | Technical people | Contributions |
|---|
| Junior | 1 | 7.5 |
| Intermediate | 1.15 | 10 |
| Advanced | 1.3 | 12.5 |
| Special | 1.5 | 15 |
| Other eligible technical qualification / no functional-grade certificate | 1 | 5 |
Technical qualifications and contribution recipients’ functional grades are different records.
Never duplicate people or payments across grade rows.
Frequently asked questions
Does adding capital increase capacity proportionally?
No. Real capital, financial scores and the management and production caps interact. A scenario holds financial ratios unchanged and is only a comparison.
Can I leave zero performance blank?
No. Enter 0 for a verified zero amount. A blank is unknown and keeps the total pending.
What if I cannot find current productivity?
Ask the specialist construction association for the applicable annual source. Do not use general-construction statistics or the fictional example instead.
Are all retirement contributions multiplied by ten?
No. The current certificate/grade multipliers are 5, 7.5, 10, 12.5 and 15.
Should staff be prorated by months?
This calculator does not invent a monthly formula. Enter recognized people after confirming qualifications and holding-period evidence with the association.
Can a new or rehabilitating company use the result?
Those cases are outside scope because separate scoring and reduction provisions may apply. The ordinary total stays pending.
Does a disclosure difference prove an error?
No. Compare units, years, recognized evidence, truncation and special provisions first. A difference does not establish an approved correction.
Can the saved report prove tender eligibility?
No. It is a consultation worksheet. The relevant tender notice, procuring authority and official disclosure determine eligibility.
Official Korean sources and updates
Verified 2026-11-05 for the 2026 assessment year.
Korean Construction Industry Framework Act Article 23, MST273435, is effective 2025-11-27; Rule Articles 22–23 and Annex 2, MST282375, are effective 2026-01-02.
Check sector corporation minimum capital in Enforcement Decree Annex 2, MST287349, effective 2026-06-23.
The specialist association’s 2026-07-30 disclosure applies from 2026-08-01.
Recheck legislation, annexes, annual specialist averages, productivity, filing arrangements and evidence recognition each year.
Match evidence before deciding your next action
Compare the four published components and omissions above, then save your worksheet.
Ask the association about recognition and correction eligibility; consider caps and actual costs before capital injections or hiring.