Essential Factory Site Purchase Checklist: Must-Verify Items Before Buying

A real estate broker calls saying 'Great factory land just came on the market.' The price seems reasonable, the area is suitable, and the location doesn't look bad. Rushing to sign a contract at this point could lead to major disappointment. Factory site purchases require verification work at a different level from general real estate transactions.

First and most important verification is land use regulations. Getting a land use plan confirmation from the Ministry of Land, Infrastructure and Transport's Land Integration (eum.go.kr) lets you check all regulatory items applying to the land. This shows zoning districts (industrial/management/agricultural), zoning areas (fire protection/scenic/preservation), and zoning zones (development restriction zones). You must first verify whether the zoning district allows factory construction and whether overlapping regulations exist.

Second is land category. When land category is 'factory site' or 'residential land,' procedures are relatively simple, but 'field,' 'rice paddy,' or 'forest' require additional permits. Agricultural land requires agricultural land conversion permits (Agricultural Land Act Article 34), while forest land requires forest land conversion permits (Forest Land Management Act Article 14). From July 2024, agricultural land preservation charges were reduced from 30% to 20% of official land prices for non-agricultural promotion areas, representing significant cost savings.

Third, always verify road access conditions. According to Building Act Article 44, building sites must front roads of 2m or more (practically 4m or more for factories). Even excellent land cannot receive building permits without access roads. Private roads require road use consent forms, and actual roads may differ from cadastral maps, making site verification essential.

Fourth through sixth involve checking overlapping regulations. In the Gyeongju-Gyeongbuk region, particular attention is needed for cultural property protection zones (Cultural Property Protection Act) and military facility protection zones (Military Base Act). Due to Gyeongju's historic city characteristics, cultural property protection zones are extensively designated, creating potential cultural property-related restrictions even slightly outside city centers. Water source protection zones, river areas, and disaster risk zones also require verification.

Seventh is environmental risk assessment. Under the Soil Environment Conservation Act, sites that previously housed gas stations, dry cleaners, or waste treatment facilities should undergo soil contamination surveys. If soil is contaminated, cleanup costs can reach hundreds of millions of won. Eighth is verifying water, sewage, and power connection availability. Rural lands often lack water supply pipes or have insufficient power capacity.

Ninth, evaluate purchase price appropriateness. Compare Korea Real Estate Board official land prices with surrounding actual transaction prices, then calculate total project costs including permit costs, infrastructure development costs, and agricultural land preservation charges. Finally, tenth, always conduct preliminary permit consultations. Taking land information to the building or economic affairs departments of relevant city/county/district offices for preliminary factory establishment consultations provides the most certainty.

Land purchase is the beginning of factory establishment and the largest investment decision. Mistakes at this stage are very difficult to reverse. Please carefully check the above checklist before contracts, and strongly recommend reviewing land with permit specialists if possible.