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Factory Establishment

A factory is established by selecting the factory site, obtaining approval (authorization and permission) of factory establishment, building the factory and notifying the completion of the factory.

Definition of factory & factory establishment process

Factories as defined in the Industrial Cluster Development and Factory Establishment Act

Factories are places of business prescribed by Presidential Decree for conducting manufacturing business prescribed by Presidential Decree, equipped with buildings or structures, manufacturing facilities, such as machinery or equipment which constitutes manufacturing processes, and their ancillary facilities.

Factory establishment

Factory establishment is a concept that covers all of the following processes: approval of factory establishment, expansion, relocation, change of business category, and installation of manufacturing facilities; registration of a new factory (smaller than 500m2); and revision of registration.

Factory establishment process
Factory Establishment
Classification Process Reference
Factory site selection
  1. Decide type of factory site
  2. Site inspection and analysis
    (regional, individual)
  3. Select site
  4. Draw up factory establishment plan
  5. Prepare required documents
  6. Civil engineering and design (individual)
  7. Application for factory establishment approval (incl. agenda processing)
  8. Approval of factory establishment or movie-in agreement (individual sites)
  9. Completion of civil engineering work
    (individual sites)
  10. Construction design
  11. Application for permission
    of construction
  12. Usage test and notification of
    completion of factory establishment
  13. Issuance of factory registration
    certification (notification)
  • Land use and industrial complexes
  • Required documents

    - Land use plan confirmation

    - Cadastral (forest) map

    - Certified copy of land and
    building register

  • Feasibility of the site
  • Environment-related
  • Feasibility of
    construction permission
  • Feasibility of logistics and
    labor supply and demand
Approval, authorization,
permission of factory
  • Required documents

    (Individual sites)
  • Documents for application for
    legal fiction
  • Local governments:
    deliberation of civil petitions
  • Industrial complex management
  • Departments responsible for
    authorization and permission of
    factory establishment
Factory construction and
notification of completion
of construction
  • Installation of manufacturing
    facilities for factory operation
  • Land merger and change in
    land category
  • Within 2 months from the
    installation of machinery
  • Notification of completion of
    factory establishment and
    confirmation on whether
    the notification matches the
    approved matters
  • Notification within 3 days
    from acceptance of factory
    establishment completion


KIM Ki Yong Manager

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