When to File Factory Registration after Buying a Factory Building in Korea — Right of Use at the Down Payment Stage and the 7-Day Processing Period

Procedure

1. 1. Check first whether factory establishment approval is required

   To newly build, expand, or change the business type of a factory with a factory building area of 500 square meters or more, you must obtain factory establishment approval, and the factory is entered in the factory registration ledger after a completion report (Industrial Cluster Development and Factory Establishment Act, Article 13(1) and Article 16(1)). A factory not subject to approval follows the procedure in which the owner or occupant applies for factory registration, so first check the factory building area you will use in the building you are buying (same Act, Article 16(2)).

2. 2. Check the building use and location before paying the down payment

   The registration authority registers a factory when it meets the standards of related laws such as the Building Act, the National Land Planning and Utilization Act, the Clean Air Conservation Act, the Water Environment Conservation Act, and the Noise and Vibration Control Act, as well as the standard factory area ratio (Enforcement Rule of the same Act, Article 12(2)). Checking the use stated in the building register, the zoning district, and whether emission facilities can be installed before signing the sale contract reduces the risk of registration being refused after the balance is paid.

3. 3. Prepare the business plan and manufacturing facility details before the balance

   The factory registration application is accompanied by the business plan in Form 2-2 or the business plan for a factory not subject to approval in Form 2-3 (Enforcement Rule of the same Act, Article 12(1)). The business plan for a factory not subject to approval states the type of premises (purchase from a developer, acquisition, lease, or other), factory size, facilities and equipment, and production process chart, and the application states the manufacturing facility details and the plan for pollutant emissions and prevention facilities, so these can be prepared before the balance date (same Rule, Form 2-3 and Form 9).

4. 4. Apply for factory registration after the ownership transfer

   Once you pay the balance and ownership is transferred, the buyer can apply for factory registration as the owner of the factory (same Act, Article 16(2)). The registration authority checks the building register of the factory building through shared administrative information, so before filing, compare the use and area in the register with the business plan (Enforcement Rule of the same Act, Article 12(1)). Whether an application can be accepted before the balance based on the seller's consent to use should be confirmed in advance with the competent city, county, or district office or the management agency.

5. 5. Processing period and closing out the existing factory

   The registration authority must notify the applicant of registration within 7 days of receiving the application, or within 20 days where other permits are processed as deemed granted, and there is no application fee for factory registration (Enforcement Rule of the same Act, Article 12(2) and Form 9). If you are moving the location of an already registered factory, check with the competent authority whether it is handled as a registration change using the same form, and also close out the registration details and emission facility reports of the existing factory (same Rule, Article 12(4)).

Required documents

• Factory registration application (Enforcement Rule of the Industrial Cluster Development and Factory Establishment Act, Form 9)
• Business plan for a factory not subject to approval (same Rule, Form 2-3) or business plan (same Rule, Form 2-2)
• Building sale contract and proof of balance payment
• Certificate of registered matters for the building (to confirm the ownership transfer)
• Manufacturing facility details and production process chart
• Factory layout drawing (if required by the competent authority)
• Applications and attachments required by the relevant laws if you seek deemed permits
• Documents proving the acquisition (only when acquiring a registered factory)

Fees

There is no application fee for factory registration (Enforcement Rule of the Industrial Cluster Development and Factory Establishment Act, Form 9). Our office fee starts from the amount shown above and may vary depending on the factory size, whether deemed permits are involved, and the scope of closing out the existing factory; we will give you an exact quote after reviewing your documents.

See fees and official charges for this service →

Legal basis and review date

• Industrial Cluster Development and Factory Establishment Act, Article 13
• Industrial Cluster Development and Factory Establishment Act, Article 16
• Industrial Cluster Development and Factory Establishment Act, Article 20
• Enforcement Rule of the Industrial Cluster Development and Factory Establishment Act, Article 12
• Enforcement Rule of the Industrial Cluster Development and Factory Establishment Act, Form 2-3
• Enforcement Rule of the Industrial Cluster Development and Factory Establishment Act, Form 9

Checked against the statutes on 2026-10-26

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 the balance is paid, the buyer is not the owner or occupant of the factory and the factory registration application may not be accepted, so set the schedule by considering both the date you need the factory registration certificate and the balance date (Industrial Cluster Development and Factory Establishment Act, Article 16(2)).

Frequently asked questions