Complete Guide to Factory Construction by Zoning District

When searching for factory sites, the first obstacle encountered is the question 'Can factories actually be built on this land?' Korea has zoning districts designated for all land under National Land Planning and Utilization Act Article 36, and these zoning districts strictly regulate the types and scales of buildings that can be constructed.

Let's organize zoning districts where factory construction is principally possible. The most representative is industrial zones. Industrial zones are divided into three types: exclusive industrial zones, general industrial zones, and semi-industrial zones. Exclusive industrial zones are for heavy chemical industry and polluting factories, general industrial zones for factories with minimal environmental pollution, and semi-industrial zones where light industry and residential uses coexist. Industrial zones have relatively generous building coverage ratios of 60-70% and floor area ratios of 200-400%.

Among management areas outside urban areas, planned management areas allow factory construction. According to National Land Planning Act Enforcement Decree Annex 20, planned management areas allow construction of factories below certain scales (industries with minimal pollutant emissions). However, limitations of 40% building coverage ratio and 100% floor area ratio make large-scale factories difficult, suiting small to medium-scale manufacturing. Indeed, many small food processing and machinery parts factories in Gyeongju-Gyeongbuk region are located in planned management areas.

Conversely, conservation management areas, agricultural/forestry areas, and natural environment conservation areas generally prohibit factory construction. Agricultural promotion areas particularly have very restrictive non-agricultural land use under Agricultural Land Act Article 32. However, non-agricultural promotion areas (agricultural lands outside agricultural promotion areas) may allow factories with agricultural land conversion permits. July 2024's reduction of agricultural land preservation charges from 30% to 20% of official land prices for non-agricultural promotion areas reduced cost burdens.

A frequent practical problem involves attempting factory construction in 'production green zones' or 'natural green zones.' Production green zones may allow limited factory construction within 20% building coverage ratio, but natural green zones are nearly impossible. Supreme Court precedent (2021Du33883) ruled that rejecting factory permits for environmental conservation public interest is legal, making preliminary verification essential when purchasing land in such areas.

The most reliable method for verifying zoning districts is using the Ministry of Land, Infrastructure and Transport's Land Integration (eum.go.kr) system. Entering addresses or lot numbers provides zoning district, zoning area, and zoning zone information along with constructible building types. It's free.

The 2025 Building Act revision's simplification of some use change procedures is also noteworthy. Particularly, use changes from accommodation facilities to residential use were eased, and such regulatory improvement trends may expand to industrial building use changes in the future. However, factory-related use changes currently still apply strict standards, making selection of sites in appropriate zoning districts from the beginning the safest strategy.