Hello, Iโm an administrative agent working in Songdo, Yeonsu-gu, Incheon. Let me introduce you to an anecdote I encountered while working. ๐
It was three weeks before Chuseok (Korean Thanksgiving). Shop owners of Korean grocery stores say that the two weeks before Chuseok are a different period than any other time of the year. This is the time when families who find it difficult to make all the holiday dishes at home โ such as jeon (Korean pancakes), seasoned vegetables, galbijjim (braised short ribs), and japchae (glass noodles) โ place their orders in advance.
He planned to open his store to meet that two-week demand. The interior was almost complete, the refrigerated display case was in place, and even the flyer design was ready. All that remained was to file the business registration with the district office. He said he had all the documents prepared.
However, the registration was halted at the acceptance stage. It wasnโt due to the documents. It was because of the kitchen where he planned to fry the jeon, located at the back of the store.
## Twelve Years of Cafeteria Experience, and My First Shop
The owner was a woman in her early thirties. She worked in university cafeterias and nursing home kitchens for twelve years. She was familiar with mass cooking and, above all, very quick. Colleagues who worked with her in the nursing home kitchen often said, "This needs to be sold," about the owner's seasoned vegetable dishes.
The shop was on the first floor of an old shopping complex in Yeonsu-gu, Incheon. It was located between two apartment complexes and on the way to elementary school. The previous tenant ran a snack shop and left. A kitchen space that had been used since the snack shop days was attached to the back of the store. The spacious kitchen was the biggest reason for choosing that store. When making large quantities of Korean pancakes and fried snacks, you need plenty of space for burners and worktables.
Startup capital was raised with retirement pay and a small business startup loan. The deposit, key money, and interior design costs almost depleted her savings. The loan grace period was six months. The shop had to settle in within that time for the repayment plan to work. The after-school care costs for her elementary school daughter were also included in that plan. The Chuseok (Korean Thanksgiving) season was the first button on that six-month plan.
There was a reason for choosing a side dish shop over a restaurant. Restaurants are crowded during lunchtime and dinner, and you need someone to manage the dining area. This didn't suit the owner, who had to send her child to school and pick them up. Side dish shops focus on concentrated cooking in the early morning and late morning, with sales and order management in the afternoon. The owner's daily schedule and the early morning cooking habits she developed in the nursing home kitchen were a good fit. Also, without seating, she was able to reduce interior design costs.
## What if the shop in front did it, can I too?
The store owner's initial thought was this: Since the previous tenant ran a snack bar (๋ถ์์ง), this shop is a place where food sales will work. The business registration would be a purely formal procedure.
This is half right and half wrong. ๐
Snack bars are typically registered as rest areas or general restaurants. Grocery stores are usually registered as ready-to-sell manufacturing/processing businesses. This is because the food is made directly in the store and sold on the spot. Both are businesses under the ใFood Sanitation Actใ, but the types of businesses are different, and the required facility standards are also different. The method of inheriting the previous store's business registration is only possible when the types of businesses are the same; if the type of business changes, a new registration is required.
Even if the types of businesses are the same, there are things to be careful about. When taking over the store and inheriting the status of the business owner, a succession report must be filed within a specified period, and administrative penalties imposed on the previous business owner may also be passed on. This is why it's said to check the disposal history of the previous store when paying key money. This store owner was registering a new business with a different type of business, so there was no succession issue, but instead, a problem arose elsewhere.
Article 37 of the ใFood Sanitation Actใ stipulates that those who wish to operate a food-related business must obtain a permit or register/register depending on the type of business. Ready-to-sell manufacturing/processing businesses are subject to registration, and the jurisdiction is usually the city/county/district public health department. Simply put, it's a system where you have to have the facilities specified for each type of business, submit the specified documents, and have a public official confirm them before a registration certificate is issued.
The store owner knew that the types of businesses were different. They found a list of documents required for registration as a ready-to-sell manufacturing/processing business online and checked them one by one. They also took the hygiene education online in advance and obtained a health check-up certificate, commonly known as a health certificate, from the public health center. A copy of the lease agreement, a facility overview, too. The list was perfect.
There was one thing that wasn't on the list. It was the building's record (๊ฑด์ถ๋ฌผ๋์ฅ).
## Reasons for Stopping at the Submission Point
The business owner went to the district officeโs hygiene department with the documents, and the official checked the documents and looked up the building information. They pointed out two things.
First, the building registry showed that this building was listed as a violation of building codes. Second, the area of the kitchen in the facility outline submitted by the business owner was larger than the area of that room according to the building registry.
The officialโs explanation was simple: It will be difficult to receive an operating permit for a building listed as a violation of building codes. Please resolve the building issue first.
The business owner initially didnโt understand what they were saying. They asked, โWeโve been running this food stall here for years,โ and the official replied that they would need to separately verify when and in what condition the previous business was registered. It was a standard answer. It wasnโt wrong, but the business owner didnโt know what to do next at that moment.
That evening, the business owner called the building owner. The building owner said that the kitchen area was made by a previous tenant a long time ago, and that they didnโt know the details. The business owner searched the internet for two days, and then contacted our office through a referral from a neighboring business owner who runs a nail salon in the same commercial building.
## What One Building Record Revealed
When scheduling the consultation, I requested that you send me the building record, lease agreement, facility overview diagram, and photos of the store's interior. You sent the files that night, and when you came to the office on the day of the appointment, I had already reviewed the building record several times.
The record indicated that the purpose of this space was designated as a Type 2 Neighborhood Living Facility. In other words, the purpose itself was not a problem for conducting instant sales manufacturing and processing businesses. The problem was the notation in the upper right corner of the first page of the record and a single line in the changes section. It was a record that the district office had identified several years ago an unauthorized extension at the back of the building as an illegal construction, and a corrective order had been issued but not yet resolved.
When I overlaid the store's interior photos and diagrams, the picture became clear. Originally, this space consisted of a sales area in the front and a small kitchen in the back. However, someone built a wall and roof towards the backyard, expanding the cooking area, and that area was a space not included in the record's area. Nearly half of the spacious kitchen, which was the reason you chose the store, was a space that didn't exist on paper.
There's an important precedent here. The Supreme Court has ruled that even if all other requirements for a restaurant business registration are met, a business cannot be properly registered if the building used for the business was not permitted under the Building Act (Supreme Court Decision 2008do6829). Operating without a proper registration constitutes an unregistered business, which is subject to criminal penalties, not just a fine. ๐จ
Many of my followers often confuse this point. The 'purpose' and the 'illegal construction notation' on the building record are different things. The purpose tells you what type of business can be conducted in that space. For a Korean food store, a Neighborhood Living Facility is usually sufficient. The illegal construction notation means that part of the building was built or changed without a permit or notification. Even if the purpose is correct, if an illegal construction notation is attached, the situation changes if that area is used for business operations. The checklist you found online only mentioned 'purpose verification,' not 'illegal construction notation verification.'
Anyone can freely obtain a building record from Government 24. The illegal construction status is indicated at the top of the first page, and detection and corrective records are listed in the changes section on the back. If you need a diagram, you can view it from the district office's building department with the building owner's consent. Five minutes before the contract, and if necessary, a day. That's enough time to verify the information.
So, the agent's suspension of acceptance wasn't being difficult, but rather preventing you from getting into a bigger problem. When I told the owner this, he was silent for a while. And then he asked, "What about the previous snack shop?"
## How Did the Front Store Manage to Stay in Business?
Itโs natural to be curious. I checked, and hereโs how it unfolded.
The front snack bar initially filed its business registration before the illegal extension was discovered. The facility overview at the time of registration only listed the original kitchen area. The extension was carried out later and was discovered several years afterward. After being discovered, the snack bar continued operating until it closed down this time. The reason the front store seemed to be doing business without problems was because the business registration was based on the conditions before the extension.
Newly registered business owners face a different situation. New filings are based on the current condition of the building. And the current building had a record of illegal construction.
Confirming this fact required the date of the previous restaurant's business closure, the building record modification history, and the records of violations remaining in the district officeโs building department. We requested the violation records from the building department with the building ownerโs consent. The building owner was initially hesitant, but agreed to cooperate after being told that if this issue isn't resolved, it would be difficult for any future tenant to operate a food business in this store.
## Three Paths
I divided the options into three choices in the consultation. โ๏ธ
First, the path of resolving the building issue first. This involves having an architect review whether the unauthorized extension can be made legal. If possible, this is the cleanest solution, but it takes several months for design and permit procedures, and the costs must be shared with the building owner. It was uncertain whether it would be completed within the Chuseok (Korean Thanksgiving) holiday or the loan commitment period.
Second, the path of giving up the store. This involves terminating the lease agreement and finding another location. Considering the key money and interior costs, this was an option the owner couldn't afford.
Third, the path of reducing the business premises to a legal space. This involves excluding the unauthorized extension from the business premises and meeting the facility standards for instant manufacturing and processing businesses within the area registered in the land register. While the cooking space would be reduced, it allows separating the building issue from the business registration.
I didn't immediately abandon the first path. With the building owner's consent, I sent the blueprints and photos to an architect the building owner knew and simply asked for an opinion. The architect's response was that the extension was too close to the property boundary of the yard and there was little margin for the building's overall floor area ratio, making it difficult to make it legal. Even if possible, it would take at least a few months for structural review, design, and permit. It was practically an unrealistic path to expect within this Chuseok holiday or the owner's commitment period.
I also calculated the second path with numbers. If the contract is terminated, the deposit can be returned, but almost no key money or interior costs will be recovered. While looking for a new store and renovating again, the loan commitment period continues to pass. The owner stared at the spreadsheet for a while and then shook their head.
The third path was realistic. However, there were two conditions. One, the reduced space must still meet the facility standards. Instant manufacturing and processing businesses must separate the cooking area from the sales area and have hand-washing facilities, refrigeration and freezing facilities, etc. Two, the unauthorized extension must be physically separated from the business premises. It would be meaningless if it were only excluded from the documents and actually used to fry jeon (Korean pancakes).
## Moving Two Burners
From this point on, it was about redesigning the owner's cooking workflow. This part was something the owner was an expert in. After all, theyโve been doing mass cooking for twelve years.
The original kitchen within the large area wasnโt as small as we thought. The problem was that four out of the six burners the owner had planned were to be placed in the expanded space. The owner looked at the blueprints for a while and said, โMaking a lot of jeon (Korean pancakes) is only for the two weeks before Chuseok (Korean Thanksgiving), and normally three burners are enough.โ Instead, the Chuseok quantity can be fried in two batches, one the night before and one in the early morning.
We reduced the number of burners to three, changed the position of the worktables, and moved the handwashing facilities to the entrance of the cooking area. The interior company worked for two days. The door leading to the expanded space was removed and walled off. The building owner will use that space as a storage room for the time being.
Something else came up during the construction. The exhaust duct for the kitchen ventilation hood was running through the ceiling of the expanded space and out. When the expanded space was separated from the business area and walled off, if the duct still passed through that space, some of the business areaโs facilities would still be in a part of the building that violates building codes. This was something the inspector could easily point out when they visited the site. We discussed it with the interior company and changed it to route the duct back to the original kitchen wall and directly outside. The construction was delayed by a day, but it was better than having to go back and forth with a supplementary request later.
The owner also did a test cooking session, actually frying jeon in the reduced kitchen. How many pans could be fried per hour with three burners, where to put the cooled jeon for packaging. The workflow calculations ingrained from the hospital kitchen really shone here. Administration was about reducing the space to fit the documents, and it was up to the owner to make the business work in that smaller space.
During this process, I confirmed one more thing: whether it qualified as a multi-use business based on the store's area and structure. If it did, a certificate of completion of safety facilities from the fire station would be required, and that on-site inspection would be the biggest bottleneck in the schedule. This store has a structure that only offers takeout sales without seating, and as a result of inquiring with the relevant fire station, I received a response that it was not subject to the requirement. Weโve overcome one hurdle. ๐
## Redrawing the Facility Overview Diagram
After the construction was completed, we redrew the facility overview diagram. This time, it was drawn exactly to match the area on the building record. We marked the kitchen, sales space, handwashing facilities, the location of refrigerators and freezers, and the waste storage location.
And we attached an explanatory document along with the application form. This document stated that the business area of this room was configured only within the area on the building record, that unauthorized extensions were excluded from the business area and separated by walls, and included photos before and after separation. It was a document that answered the very first question the inspector asked. By putting the answer in before the question arises, we can reduce the number of back-and-forths.
We already had the hygiene education completion certificate and health check certificate. These two documents were helpful because they are required for business registration and were prepared in advance. Not only the owner but also the cousin who was going to help with the cooking needed a health check certificate, so we noted it separately on the schedule as it takes several days for the health center results to be released.
We also calculated the re-submission date backward. To open the doors two weeks before Chuseok (Korean Thanksgiving), the business license had to be issued before that, and after the registration, there could be an on-site inspection by the inspector. Construction completion, cousin's health check results, re-submission, and on-site inspection. When we wrote these four dates backward on the calendar, the re-submission had to be no later than the day after construction was completed. I suggested postponing the distribution of flyers and the acceptance of reservation orders until after the business license was issued. If we start taking orders before the registration is complete, it could become a problem itself.
## License Issued Day, and Business Card Mix-Up
The resubmitted application was processed after the officer inspected the site. The officer knocked on the kitchen wall, checked the blocked door location, and turned on the hot water in the handwashing facility. The license was issued ten days before Chuseok [Korean Thanksgiving].
On the day the license was issued, there was a small commotion. ๐ The owner, excited, received the five hundred business cards they had ordered in advance, but the last digit of the phone number next to the store name was the printing company owner's number, not the owner's. The printing company owner had temporarily entered his number during the proofing process and had it printed as is. The printing company owner apologized and reprinted the business cards for free the next day, and the misprinted cards were decided to be used as store memos. The owner wrote down the first order on that memo.
For the two weeks before Chuseok, the store was full of pre-ordered items. The plan to deliver them in the evening and early morning was executed as planned. With only three burners, it was physically demanding, but all the prepared quantities were sold out.
Even after the license was issued, there were a few things to do. First, business registration was required at the tax office, which the owner did directly after receiving the license. We also took care of the required labeling for packaged side dishes. Instant-processed foods must comply with labeling standards such as product name, manufacturing date, and expiration date when packaged for sale. We also reviewed the wording for the flyers together. Expressions like 'no additives' and '100% domestically produced' can be problematic if there is no supporting evidence, so we decided to only keep the content the owner could actually verify.
## Remaining Tasks and Lingering Feelings
There are still remaining tasks. The unauthorized extension remains the building ownerโs responsibility. The building owner said they would consult with an architect to consider whether to restore it to its original state or find a way to make it compliant. The president may later file a change report to increase the business area based on the results. I also noted at the bottom of the schedule that a change report must be filed within the specified timeframe if the business registration details change.
Looking back, the root of this issue was simple. If a building record had been checked before signing the contract, the indication of a violation of building regulations would have been immediately visible on the first page. It was a single sheet that could be confirmed in five minutes. If that had been done, the goodwill negotiation and interior design could have been done from the beginning based on the area shown in the record.
Itโs not that the president was careless. The fact that the neighboring store had been running a food business for several years was interpreted by everyone as a signal that this store was doing well. The documents were simply telling a different story.
About a month after Chuseok, I received a photo from the president. It was a picture of his elementary school-aged daughter standing in front of the store. She said she stopped by the store after school to do her homework. He said the loan repayment plan was back on track. ๐ฟ
## Checklist Before Starting a Side Dish Store Business
Whether you're planning a side dish store or a small food shop in Incheon Yeongsu-gu or anywhere else, check the following first.
โ Before signing a contract, obtain the building registry. Verify that the purpose aligns with your business type, whether there are any indications of illegal construction, and whether the area on the registry matches the actual space.
โก Don't assume that the previous store was operating a food business. If the business type is different, you need to report it anew, and a new report is based on the current condition of the building.
โข Determine your business type precisely. Side dish stores that sell homemade food are typically classified as instant sales manufacturing/processing businesses. Facility standards vary depending on the business type.
โฃ Obtain hygiene education and a health certificate in advance. Health certificates for family members and employees who cook together may also be required. It takes several days for the results to come out.
โค Check whether the business falls under the category of a multi-use facility. If so, a fire safety facilities completion certificate is required, and this is the stage where the schedule is most likely to be delayed due to on-site inspections.
The requirements for business registration and facility standards vary depending on the business type, region, and building condition, so confirmation with the relevant authority is necessary.
This article is reconstructed based on actual consultation cases, and the characters, names, place names, and figures appearing in it are unrelated to any specific individuals or events.
We are an administrative agent office located in Songdo, Incheon (Posco Tower Songdo). We handle administrative litigation, license/permit and registration proxy, foreign entry/exit (visa/residence), and regular administrative management. We work together with those preparing food business registrations, such as side dish stores and restaurants, in Incheon Yeongsu-gu, from building registry verification to application documents and supplementary responses.
๐ 165, Convencia-daero, Yeongsu-gu, Incheon, Posco Tower Songdo 2697
๐ 010-3374-2687
๐ www.hwangadmin.com
Feel free to leave an inquiry if you are in a similar situation.
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