Factory & facility permits
Approval for Installation of Manufacturing Facilities: Scope and Procedure — Approval Before Installing Machinery in an Existing Factory Building
To install manufacturing facilities and run a manufacturing business in a factory building with a factory building area of 500 m² or more that was built under approval for factory establishment without specifying the type of business, or whose factory registration was cancelled, you must obtain approval for installation of manufacturing facilities from the head of the city, county or district (si/gun/gu). Installing without approval is punishable by imprisonment for up to 3 years or a fine of up to 30,000,000 won. After installation is finished, a report of completion is filed, which leads to factory registration.
Procedure
1. Check whether the building is subject to approval
Look at the building register and the factory establishment history to check whether it is a factory built under approval without specifying the type of business, or a factory whose registration was cancelled. If the factory building area is less than 500 m², it is not subject to this approval and you proceed by applying for factory registration.
2. Review the location and whether the type of business is allowed
Check from the land use plan and the use zone whether the type of business you intend to run can be located there. It is safer to sign the lease contract and order equipment only after this review is finished.
3. Prepare the approval application form and the business plan
State the products, raw materials, processes, and the list and layout of machinery and equipment in the business plan and apply to the competent city, county or district (si/gun/gu) office. Processes that need other permits, such as air, wastewater or noise emission facilities, can be handled together through consultation.
4. Install the manufacturing facilities and file the report of completion
After installing the machinery as approved, file a report of completion within the prescribed period. Operating without a report of completion is subject to an administrative fine.
5. Factory registration and management of changes
Once the report of completion is accepted, the factory is entered in the factory register. To change approved matters, obtain approval of change; for minor matters, file a report of change.
Required documents
- Application form for approval for installation of manufacturing facilities
- Business plan (products, raw materials, manufacturing process)
- List and layout drawing of machinery and equipment
- Building register, land use plan confirmation certificate
- Lease contract (for a leased building)
- Documents needed for consultation on other permits, such as emission facilities (where applicable)
Fees
Service fees in the industry for handling approval for installation of manufacturing facilities, the report of completion and factory registration range from several hundred thousand won to several million won and vary with whether emission facility permits are handled together. We will advise you after a consultation based on the building and process materials.
Legal basis and review date
- Industrial Cluster Development and Factory Establishment Act, Article 14-3
- Industrial Cluster Development and Factory Establishment Act, Article 13-5
- Industrial Cluster Development and Factory Establishment Act, Article 15
- Industrial Cluster Development and Factory Establishment Act, Article 16
- Industrial Cluster Development and Factory Establishment Act, Article 52
- Industrial Cluster Development and Factory Establishment Act, Article 55
Check these first
- Before a lease contract or an equipment order, first check the building's factory establishment history and whether the type of business is allowed.
- For processes that discharge wastewater, air pollutants or noise, check whether emission facility permits are also required.
Frequently asked questions
Do I need approval even if I lease a factory and only bring in machinery?
What happens if machinery is installed without approval?
Is approval for installation of manufacturing facilities obtained separately for a factory inside an industrial complex?
What if I change the type of business or the machinery after approval?
Is approval cancelled if I do not install the facilities for a long time after approval?
Does an administrative agent apply for approval for installation of manufacturing facilities on my 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.
