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Factory & facility permits

Permit Order for Building a Factory on Farmland — Farmland Conversion Permit, Development Activity Permit, and Factory Registration Within 2 Months

To build a factory on farmland, you need a farmland conversion permit (Farmland Act, Article 34) and a development activity permit for changing the form and quality of the land (National Land Planning and Utilization Act, Article 56), and if the factory building area is 500 square meters or more, both permits can be processed together as deemed permits when you obtain factory establishment approval (Industrial Cluster Development and Factory Establishment Act, Articles 13 and 13-2). The farmland preservation charge must be paid before the permit is granted (Farmland Act, Article 38, Paragraph 4), and if you file a completion report within 2 months from the date the building use approval is obtained and the installation of machinery and equipment is completed, the factory is entered in the factory registration ledger (Enforcement Decree of the same Act, Article 20; the Act, Article 16).

Written by Hwang Yunsang, Administrative Agent · Published 2026-10-25 · Updated 2026-10-25

Procedure

Procedure type
  • Permit Difficulty High

    A procedure that allows a business, activity or stay that the law generally restricts, after review; licenses fall into this type. The authority reviews facility standards, location and consultation with other agencies, and a permit can be refused if the standards are not met.

  • Registration Difficulty Medium

    The authority checks whether the statutory registration requirements, such as facilities, staff and capital, are met before issuing a registration certificate. Registration can be refused if the requirements are not met.

  1. 1. Check the site before buying the land

    Check the zoning district and whether the land is in an agricultural promotion area using the land use plan confirmation. In an agricultural promotion zone, land use other than the facilities listed in Article 32, Paragraph 1 of the Farmland Act, such as facilities for processing and treating agricultural and fishery products, is not allowed, so a general manufacturing factory is difficult to locate there. The farmland conversion permit review considers the appropriateness of the facility's size and use, conditions such as roads, water supply and sewerage, the degree of farmland consolidation, and damage to nearby farmland (Enforcement Decree of the Farmland Act, Article 33), so check the access road and drainage route at this stage as well.

  2. 2. Decide whether to bundle permits through factory establishment approval

    A factory with a factory building area of 500 square meters or more requires factory establishment approval, and even below 500 square meters you may apply for approval if you want permits such as the farmland conversion permit and development activity permit to be deemed granted (Industrial Cluster Development and Factory Establishment Act, Article 13, Paragraphs 1 and 3). When approval is granted, the farmland conversion permit, development activity permit for change of land form and quality, building permit and other permits on which the mayor, county head or district head has consulted the relevant agencies are deemed granted (same Act, Article 13-2, Paragraph 1). Approval is decided within 20 days from the application (14 days if all matters fall under the authority of the mayor, county head or district head, and 7 days if no deemed permits are involved) (Enforcement Rule of the same Act, Article 6, Paragraph 3).

  3. 3. Farmland conversion documents and payment of the farmland preservation charge

    Attach to the farmland conversion permit application a business plan stating the purpose of conversion, project period, facility layout and funding plan, documents proving the right to use the land, a certified cadastral map copy and topographic map showing the planned conversion area, and a damage prevention plan where damage is expected (Enforcement Rule of the Farmland Act, Article 26). The farmland preservation charge per square meter is the officially assessed individual land price multiplied by 30/100 for farmland in an agricultural promotion area and 20/100 for other farmland, and it may not exceed 50,000 won per square meter (Enforcement Decree of the Farmland Act, Article 53; Enforcement Rule, Article 47-2). The charge must be paid before the permit (including an approval under which the permit is deemed granted) is granted (Farmland Act, Article 38, Paragraph 4).

  4. 4. Manage the construction start deadline after approval

    Factory establishment approval under which a farmland conversion permit is deemed granted may be revoked if construction does not start within 2 years from the approval date (3 years in other cases) (Industrial Cluster Development and Factory Establishment Act, Article 13-5). Failing to file a completion report within 4 years after approval, or suspending construction for 1 year or more after starting, is also a ground for revocation. Even where a farmland conversion permit is obtained separately, the permit may be revoked if the intended project is not started for 2 years or more from the permit date (Farmland Act, Article 39, Paragraph 1, Subparagraph 4).

  5. 5. Completion, completion report and factory registration

    A development activity permit for changing the form and quality of land requires a completion inspection once the work is finished, while for the construction of a building the building use approval replaces the completion inspection (National Land Planning and Utilization Act, Article 62, Paragraph 1). If you file a factory establishment completion report within 2 months from the date the final building use approval is obtained and the installation of machinery and equipment is completed, the factory is entered in the factory registration ledger, and a factory not subject to approval applies for factory registration (Industrial Cluster Development and Factory Establishment Act, Articles 15 and 16; Enforcement Decree, Article 20). If you want to change the facility use or business type within 5 years from the date the conversion purpose was completed, check whether approval for a change of use is required (Farmland Act, Article 40; Enforcement Decree, Article 59).

Required documents

  • Factory establishment approval application (Enforcement Rule of the Industrial Cluster Development and Factory Establishment Act, Form No. 5)
  • Business plan (same Enforcement Rule, Form No. 2-2)
  • Statement of permits deemed processed through factory establishment approval (same Enforcement Rule, Form No. 5-3)
  • Farmland conversion permit application (Enforcement Rule of the Farmland Act, Form No. 14) and farmland conversion business plan
  • Documents proving the right to use the farmland to be converted (consent to use, sales contract stating consent to use, etc.) and a certified cadastral map copy and topographic map showing the planned conversion area
  • Damage prevention plan (where changes to farmland improvement facilities or roads, soil runoff, wastewater discharge or odor are expected)
  • Development activity permit application (Enforcement Rule of the National Land Planning and Utilization Act, Form No. 5) with a layout plan and hazard prevention and environmental pollution prevention plans
  • Factory establishment completion report (Enforcement Rule of the Industrial Cluster Development and Factory Establishment Act, Form No. 7) and building use approval documents

Fees

Administrative service fee
  • from KRW 300,000
All administrative service fees exclude 10% VAT.

The farmland preservation charge is 30/100 (farmland in an agricultural promotion area) or 20/100 (other farmland) of the officially assessed individual land price per square meter, may not exceed 50,000 won per square meter, and is paid before the permit is granted (Enforcement Decree of the Farmland Act, Article 53; Enforcement Rule, Article 47-2). If the charge is 20,000,000 won or more per case for an individual, or 40,000,000 won or more per case in other cases, you may apply for installment payment (Enforcement Rule of the Farmland Act, Article 45, Paragraph 4). Actual costs such as surveying and design documents are separate. Our office fee starts from the amount shown above and may vary depending on the conversion area, the number of permits to be deemed processed, and the volume of consultation with relevant departments and supplementation; we will give you an exact quote after reviewing your documents.

See fees and official charges for this service →

Legal basis and review date

  • Farmland Act, Article 32
  • Farmland Act, Article 34
  • Farmland Act, Article 38
  • Farmland Act, Article 39
  • Farmland Act, Article 40
  • Enforcement Decree of the Farmland Act, Article 32
  • Enforcement Decree of the Farmland Act, Article 33
  • Enforcement Decree of the Farmland Act, Article 53
  • Enforcement Decree of the Farmland Act, Article 59
  • Enforcement Decree of the Farmland Act, Article 71
  • Enforcement Rule of the Farmland Act, Article 26
  • Enforcement Rule of the Farmland Act, Article 45
  • Enforcement Rule of the Farmland Act, Article 47-2
  • National Land Planning and Utilization Act, Article 56
  • National Land Planning and Utilization Act, Article 62
  • Industrial Cluster Development and Factory Establishment Act, Article 13
  • Industrial Cluster Development and Factory Establishment Act, Article 13-2
  • 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
  • Enforcement Decree of the Industrial Cluster Development and Factory Establishment Act, Article 20
  • Enforcement Rule of the Industrial Cluster Development and Factory Establishment Act, Article 6

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

  • Non-payment of the farmland preservation charge is a ground for revoking the farmland conversion permit (Farmland Act, Article 39, Paragraph 1, Subparagraph 5), and if the project is not started within 2 years without paying the charge after the deemed-permit consultation, revocation of the factory establishment approval may be requested (same Article, Paragraph 2), so set the assessed charge amount and payment schedule at the approval application stage.
  • If, within 5 years from the date the conversion purpose was completed, you change the facility use or business type so that the business site size classification under air and water quality laws changes or the facility moves to one with a different charge reduction rate, you must obtain approval for a change of use from the mayor, county head or district head (Farmland Act, Article 40; Enforcement Decree, Article 59), so check whether this applies before leasing the factory or adding a business type.

Frequently asked questions

What permits do I need to build a factory on farmland?
You need a farmland conversion permit, a development activity permit for changing the form and quality of the land, and a building permit, and if the factory building area is 500 square meters or more you must also obtain factory establishment approval. When approval is granted, the farmland conversion permit, development activity permit and building permit on which the relevant agencies have been consulted are deemed granted (Industrial Cluster Development and Factory Establishment Act, Article 13-2), so they can proceed together through a single approval application.
Where do I apply for a farmland conversion permit, and who grants it?
You submit the application to the mayor, county head or district head with jurisdiction over the location of the farmland (Enforcement Decree of the Farmland Act, Article 32, Paragraph 1). The mayor, county head or district head grants permits for farmland of less than 30,000 square meters outside an agricultural promotion area and less than 3,000 square meters inside one, and larger areas are permitted by the Mayor/Do Governor or the Minister of Agriculture, Food and Rural Affairs (same Enforcement Decree, Article 71).
How much is the farmland preservation charge, and when is it paid?
It is calculated at 30% (agricultural promotion area) or 20% (other farmland) of the officially assessed individual land price per square meter, with a cap of 50,000 won per square meter (Enforcement Decree of the Farmland Act, Article 53; Enforcement Rule, Article 47-2). It must be paid before the farmland conversion permit or an approval deeming it granted (Farmland Act, Article 38, Paragraph 4), and non-payment is a ground for revoking the permit (same Act, Article 39, Paragraph 1, Subparagraph 5).
Can I build a factory on farmland in an agricultural promotion zone?
A general manufacturing factory is difficult. In an agricultural promotion zone, land use other than the facilities listed in Article 32, Paragraph 1 of the Farmland Act, such as facilities for processing and treating agricultural and fishery products and agricultural facilities, is not allowed. First check, using the land use plan confirmation, whether the planned business falls within this scope and whether the land is in an agricultural protection zone or an agricultural promotion zone.
By when must construction start after factory establishment approval?
Construction must start within 2 years from the approval date if a farmland conversion permit was deemed granted, and within 3 years in other cases. If construction does not start within this period, or no completion report is filed within 4 years after approval, the approval may be revoked and an order to restore the land to its original state may be issued (Industrial Cluster Development and Factory Establishment Act, Article 13-5).
How do I register the factory after the building is completed?
Submit a factory establishment completion report to the mayor, county head or district head within 2 months from the date the final building use approval is obtained and the installation of machinery and equipment is completed (Enforcement Decree of the same Act, Article 20). Once the completion report is received, the factory is entered in the factory registration ledger (same Act, Article 16, Paragraph 1), and if registered matters change afterwards, you must apply for a change of registration within 2 months.
Can an administrative agent handle the permits for a factory on farmland?
Yes, you can entrust everything from the site review to the preparation and submission of permit applications. Hwang Yunsang Administrative Office reviews the site using the land use plan confirmation, prepares and submits the factory establishment approval application, business plan, statement of deemed permits and farmland conversion permit application, responds to requests for supplementation during consultation with relevant departments, and handles the completion report and factory registration application on your behalf. Survey results and design documents must be prepared separately, and whether permits are granted is decided by the competent administrative agency.

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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.

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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.