Vehicle registration, repair & dealing

Registration Requirements for a Motor Vehicle Trading Business (Used Car Dealership) — 660㎡ Display Facility and Building Use

To open a dealership that buys and sells used cars, you must register a motor vehicle trading business, one of the motor vehicle management businesses under the Motor Vehicle Management Act, with the competent city, county or district (si/gun/gu) office. Most requirements, such as the display facility area, building use and road frontage, are determined by the site, so the most important thing is to check whether registration is possible before signing a lease.

Procedure

  1. 1. Preliminary review of the site

    Check the zoning with the land use plan confirmation certificate and the building use with the building register. Also check whether the use allows a trading business and, for a knowledge industry center or a sectional-ownership commercial building, whether the management bylaws allow that type of business.

  2. 2. Checking the display facility area

    The basic standard for a motor vehicle display facility is a total floor area of 660㎡ or more. Where several trading business operators share one display site, the area standard may apply differently, so decide first whether the site will be shared.

  3. 3. Checking additional requirements under municipal ordinance

    Some local governments add requirements by ordinance, such as the width of the road that the display site must adjoin. Sites with the same conditions can have different outcomes in different cities, counties or districts, so check the ordinance for the location of the place of business.

  4. 4. Lease contract and document preparation

    Once it is confirmed that registration is possible, sign the lease. Including a special clause in the contract stating that 'the contract is cancelled without penalty if registration of the trading business is not possible' can reduce losses. Then prepare the registration documents, such as the facility layout plan and office materials.

  5. 5. Applying for registration

    Apply for registration of the motor vehicle trading business with the city, county or district (si/gun/gu) office having jurisdiction over the place of business. Start business once the registration certificate is issued after an on-site check. If you employ sales staff, have them obtain and wear a salesperson identification card issued by the federation of motor vehicle trading business associations, and have them receive the prescribed training.

Required documents

  • Application for registration of motor vehicle management business
  • Business plan
  • Layout plan of the display facility and office, and area data
  • Building register and land use plan confirmation certificate
  • Proof of the right to use the facilities, such as a lease contract
  • Identification documents of the representative; for a corporation, the certificate of registered matters of the corporation

Fees

The government fee for the registration application itself follows the local government's standards. In the industry, fees for handling registration range from several hundred thousand won to several million won and vary with the preliminary site review, preparation of drawings and whether the display site is shared. We will advise you after a consultation based on the materials for the candidate site.

Legal basis and review date

  • Motor Vehicle Management Act, Article 53
  • Enforcement Rule of the Motor Vehicle Management Act, attached Table 21-5
  • Enforcement Rule of the Motor Vehicle Management Act, Article 111
  • Motor Vehicle Management Act, Article 59
  • Enforcement Rule of the Motor Vehicle Management Act, Article 123

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

  • Whether registration is possible depends on the site conditions, so check the building use, area and ordinance requirements before signing a lease.

Frequently asked questions

What is the minimum area (㎡) of the display facility for a motor vehicle trading business?
The basic standard is a total floor area of 660㎡ or more. Where several trading business operators share a display site, the standard may apply differently, so decide the form of operation first.
Can a used car dealership be run in any building?
No. The building use and zoning must be suitable, and local ordinances sometimes add road frontage requirements. For commercial units in a knowledge industry center, whether it is possible depends on the management bylaws and the zoning.
Is it acceptable to sign the lease first and look into registration afterward?
We do not recommend it. If the site turns out not to be registrable, the deposit and interior costs are tied up. Get a preliminary review before the contract and include a clause in the contract allowing cancellation if registration is not possible.
Where is a motor vehicle trading business registered?
At the transportation or motor vehicle department of the city, county or district (si/gun/gu) office having jurisdiction over the place of business. The name of the department in charge may differ by local government.
Can an administrative agent handle the trading business registration on my behalf?
Yes. Hwang Yunsang Administrative Office conducts the preliminary site review, prepares the business plan and facility layout plan, and files the registration application 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.