Individual Site Factory Approval Strategy: Focusing on Planned Management Areas

When suitable sites aren't available in industrial complexes or special location conditions are needed, factories are built on individual sites. Individual sites refer to general land outside industrial complexes, which from a permit perspective involves complexity at a different level compared to industrial complex entry.

Planned management areas are most commonly utilized for individual site factory establishment. According to National Land Planning Act Enforcement Decree Annex 20, planned management areas allow construction of factories below certain scales (industries with low environmental pollution) subject to urban planning committee review. While there are limitations of 40% building coverage ratio and 100% floor area ratio, these are often sufficient for small to medium-scale manufacturing.

The permit pathway for individual site factory establishment works as follows: First, apply for factory establishment approval under Industrial Cluster Development Act Article 13. Simultaneously, a development activity permit under National Land Planning Act Article 56 is required. Development activity permits are comprehensive permits covering land form changes and building construction, with legal processing periods of 15 days (30 days outside urban areas), but practically take 2-4 months including revision requests.

Development activity permit reviews focus most on harmony with surrounding environment, infrastructure capacity, and environmental pollution prevention measures. Gyeongju in particular, as a historic city, may have strict landscape reviews. Since Supreme Court precedent (2021Du33883) recognized the public interest of environmental standards in factory permits, thorough preparation of environmental documentation is crucial.

From a cost perspective, individual sites have greater infrastructure burdens compared to industrial complexes. Businesses often must bear costs for road access development, power connections, and water/sewage installations. However, incentives may be available under local government business attraction ordinances. Gyeongsangbuk-do has subsidy systems based on investment scale or employment numbers, so be sure to check these.

Additional impact assessments may be required based on scale. These include traffic impact assessments (for cases with significant traffic generation effects), disaster impact assessments (for disaster-vulnerable areas), and environmental impact assessments (for large-scale development). Confirming in advance whether such additional assessments are needed can prevent schedule delays.

Individual site factory establishment is about the process of 'realizing' what is 'possible.' Unlike industrial complexes where you operate within predetermined frameworks, you must create your own pathway from start to finish. In this process, the accompaniment of experienced permit specialists is particularly important.