Food manufacturing & distribution businesses

Business Report for a Distribution-Specialized Food Sales Business — How to Sell Own-Brand Food Through OEM Without a Factory

To have a food manufacturer produce food on consignment and sell it under your own trademark without operating your own factory, you must file a business report for a distribution-specialized food sales business under the Food Sanitation Act. Before reporting, you complete prior sanitation education and attach the certificate of completion to the business report form. The contract manufacturing agreement and a copy of the contract manufacturer's business registration certificate are not statutory attachments, but prepare them in advance in case you are asked to show them. Many people starting a meal kit, sauce or convenience food brand go through this procedure.

Procedure

  1. 1. Choose a contract manufacturer

    First check that the company holds a business registration that allows it to manufacture the type of product you want to make. The product can be manufactured on consignment only if the item is included in the manufacturer's business registration certificate.

  2. 2. Draw up the contract manufacturing agreement

    State the product name, the item, the production method and the scope of quality responsibility in the agreement. The contract manufacturer is responsible in the first instance for negligence in manufacturing, but responsibility for labeling and sales remains with the seller, so it is best to write down the division of roles.

  3. 3. Complete prior sanitation education

    A new operator of a distribution-specialized food sales business must receive sanitation education (4 hours) before filing the business report. The certificate of completion is attached to the report form.

  4. 4. File the business report with the competent district office

    Submit the business report form to the sanitation department of the city, county or district (si/gun/gu) office having jurisdiction over the location of your office. The right to use the office is proven with a lease contract, and when an agent files on your behalf, the authorization documents are submitted with it.

  5. 5. Manage changes after the report

    If the name of the business operator (representative), the trade name, the location or the area of the place of business changes, file a report of change. Making such a change without a report of change is punishable by imprisonment of up to 3 years or a fine of up to 30,000,000 won, and administrative dispositions such as business suspension may also be imposed.

Required documents

  • Business report form for a distribution-specialized food sales business
  • Certificate of completion of sanitation education
  • Office lease contract (proof of the right to use the premises)
  • Contract manufacturing agreement and a copy of the contract manufacturer's business registration certificate (not statutory attachments, but prepared in case you are asked to show them)
  • When an agent files, add: for an individual, a certificate of seal impression and a letter of authorization; for a corporation, a certificate of corporate seal impression and a corporate register certificate

Fees

Government fees for the business report are separate and follow the local government's standards. The office's basic fee for handling permits and reports starts at 300,000 won and varies with the number of consigned items and the scope of contract review. We will review your product plan and advise you on the fee after a consultation.

Legal basis and review date

  • Enforcement Decree of the Food Sanitation Act, Article 21
  • Enforcement Decree of the Food Sanitation Act, Article 25
  • Enforcement Decree of the Food Sanitation Act, Article 26
  • Enforcement Rule of the Food Sanitation Act, Article 42
  • Enforcement Rule of the Food Sanitation Act, Article 52
  • Food Sanitation Act, Article 97

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

  • First check that the product you plan to make is included in the items of the contract manufacturer's business registration.
  • A report of change is required if the name of the business operator (representative), the trade name, the location or the area of the place of business changes.

Frequently asked questions

What report do I need to sell food made by OEM without a factory?
You need a business report for a distribution-specialized food sales business under the Food Sanitation Act. A registered contract manufacturer handles manufacturing, and the seller handles planning and sales under its own trademark.
When do I take the sanitation education for a distribution-specialized food sales business?
A new operator must take prior sanitation education before filing the business report. The education lasts 4 hours, and the certificate of completion is attached to the report form.
Who is responsible if there is a problem with a product made on consignment?
Negligence in the manufacturing process is, in the first instance, the responsibility of the contract manufacturer. However, the seller also remains responsible for labeling and sales, so it is best to state the scope of responsibility in the contract manufacturing agreement.
Do I need to report again if I add more items?
A change in the items handled is not a matter that requires a report of change. You must file a report of change if the name of the business operator (representative), the trade name, the location or the area of the place of business changes. If a different contract manufacturer makes the new item, also update your records with the agreement with that manufacturer and a copy of its registration certificate.

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.