Converting Existing Buildings to Factories: Procedures and Precautions

Utilizing existing buildings can be advantageous in terms of time and cost compared to new factory construction. Indeed, in the Gyeongju-Gyeongbuk region, cases of converting empty warehouses, closed factories, and even abandoned schools to factories are increasing. However, thinking 'since there's a building, we can just use it immediately' can lead to major disappointment.

Building Act Article 19 categorizes building use changes into permits, notifications, and building register modifications. Factories correspond to Building Act Enforcement Decree Annex 1 No. 17, and converting existing building uses to factories mostly requires 'permits.' This is because factories belong to relatively higher categories in building use classifications, and changes to higher categories require permits. While National Land Planning Act provides 'changes to lower categories require notifications,' factory conversions rarely qualify.

Three key conditions for obtaining use change permits: First, factory construction must be allowed in the land's zoning district. Even excellent buildings cannot undergo factory use changes if located in green zones or residential areas. Second, building structural safety must be suitable for factory use. Structural reviews considering machinery loads, vibrations, and work environments are necessary. Third, fire protection, environmental, and industrial safety standards must be met.

The point of most frequent failure in practice is environmental standards. Factories are subject to environmental regulations including air emission facilities (Clean Air Conservation Act), noise and vibration (Noise and Vibration Control Act), and wastewater discharge facilities (Water Environment Conservation Act). Existing warehouses or commercial buildings lack such facilities, potentially requiring substantial additional installation costs. Depending on industry, environmental impact assessments or preliminary environmental reviews may be needed.

Roughly comparing costs, use changes typically cost 40-60% of new construction. However, extensive structural reinforcement or environmental facility installation can cost more than new construction. Particularly when seismic reinforcement is needed (seismic design standards were strengthened in Gyeongbuk region after the 2017 Gyeongju earthquake), costs can increase significantly.

Use changes over 100㎡ require use approval procedures. During this process, relevant administrative authorities finally verify compliance with standards in building, fire protection, environmental, and industrial safety areas. Since spaces cannot be used as factories until use approval, construction schedules must be well coordinated with business start timing.

Recently, local government support for utilizing idle buildings has increased as part of urban regeneration projects. Gyeongsangbuk-do also operates renovation support programs for aging industrial facilities, so please check whether your project qualifies. Converting existing building uses requires meticulous preliminary review between 'can be done' and 'must be done.'