Setting Up a Welfare Equipment Provider — Long-Term Care Institution Designation Procedure and Preparation

Procedure

1. 1. Report the medical device sales (rental) business

   Many welfare equipment items are classified as medical devices, so the medical device sales (rental) business report must be filed with the competent public health center before applying for long-term care institution designation. The report certificate is included in the designation application documents.

2. 2. Prepare the office and disinfection space

   You need a dedicated office and a welfare equipment display and trial space (23.1 m² or more), and you must secure a cleaning, disinfection and repair space (56.2 m² or more) and a storage and rental space. The cleaning and disinfection space and the storage space may be shared with another business operator, so decide whether to share before signing the office lease. The facility status is later written into the business plan as it is, so take actual measurements in advance.

3. 3. Prepare the establishment report and designation application documents

   Prepare the report of establishment of an in-home welfare facility for senior citizens, the application for designation as a long-term care institution, the business plan, the budget and the operating rules. If the figures in the business plan, the budget and the facility status do not match each other, a request for supplementation is issued, so cross-checking is important.

4. 4. Designation review and designation

   The long-term care institution designation review committee of the city, county or district (si/gun/gu) conducts the review, and the average score of the attending members must be at least 80 points out of 100 for designation (70 points for a designation renewal review). Each local government focuses on different items, so the business plan and operating rules are written to the local criteria. After designation, you can begin providing benefits and submitting claims.

Required documents

• Medical device sales (rental) business report certificate
• Report of establishment of an in-home welfare facility for senior citizens
• Application for designation as a long-term care institution
• Business plan, budget and operating rules
• Office lease contract and facility floor plan
• Documents on the facility head and staff

Fees

In the industry, fees for preparing welfare equipment provider designation documents generally run from several hundred thousand won to the 1,000,000 won range and vary depending on how much of the business plan and operating rules has to be newly written. We will advise after reviewing the local criteria and your state of preparation in a consultation.

See fees and official charges for this service →

Legal basis and review date

• Long-Term Care Insurance Act, Article 23
• Long-Term Care Insurance Act, Article 31
• Enforcement Rule of the Long-Term Care Insurance Act, Article 23
• Welfare of Senior Citizens Act, Article 39
• Enforcement Rule of the Welfare of Senior Citizens Act, attached Table 9
• Medical Devices Act, Article 17
• Incheon Yeonsu-gu Rule on the Long-Term Care Institution Designation Review Committee, Article 9

Checked against the statutes on 2026-10-05

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

• Without the medical device sales (rental) business report, the designation application documents are not complete.
• Benefits provided to beneficiaries before designation cannot be claimed as long-term care benefits.

Frequently asked questions