First of all, an application for business plan approval must be submitted to the tourism division of Seoul Metropolitan City, metropolitan cities or provinces. When approval is obtained, a construction permit according to individual laws has to be acquired. Next, after completing the construction of the facilities, registration as a tourism business must be submitted to the competent authorities where the initial approval for the business plan was obtained.

If any disputes arise during the construction of buildings, it is possible to apply for the settlement of a dispute at the Construction Dispute Settlement Committee at any city or provincial office.
The duties of the Committee include the following:

– Disputes between builders and residents of construction sites claiming damage of any
kind;
– Disputes between professional engineers and residents;
– Disputes between builders and professional engineers;
– Disputes between builders;
– Disputes between residents;
– Disputes between engineers.

It is possible to construct or remodel a building after obtaining permission from the city governor, the magistrate of a county or the chief of a ward. But if the building is to be constructed in the capital city or a metropolitan city, permission needs to be obtained from the mayor of the capital or the metropolitan city. And if the governor of a city or the magistrate of a county wants to give permission for the construction of a building, approval needs to be obtained prior from the provincial governor.

The areas where the construction of factories is possible or selectively possible are residential areas, semi-residential areas, commercial areas, industrial areas, and green belt areas. The details are as follows:

Residential areas

– Businesses in the following sectors: printing, copying of printed media, sewing,
manufacturing of computers and appliances, assembly of computer-related
electronic products, factories for the manufacturing of tofu, apartment-style factories
(excluding factories, which discharge hazardous elements pursuant to the Clean Air
Conservation Act).

Central commercial areas

– Publishing and printing, reprinting of printed media (excluding factories, which discharge
hazardous elements pursuant to the Clean Air Conservation Act).

General and neighborhood industrial area

– Only factories, which discharge hazardous elements pursuant to the Clean Air Conservation Act are excluded.

Exclusive and general industrial areas

– Factories of less than 5,000 square meters ground area total.

Green belt and rural production areas

– Apartment-style factories, rice mill, food factories, factories for pharmaceutical
preparation in the rural areas, and factories in the high-technology sector.

Planned administrative areas

– Factories of more than 10,000 square meters area size and factories in areas of more
than 15,000 square meters, which were determined by the city governor or the
magistrate of the county and are available for factory construction (excluding the
construction of facilities for the production of chemical products).

The floor-area ratio must not exceed the standards as described below (Art. 78 of the Act on the Utilization and Management of the National Territory):

– Exclusive residential area: type 1 (100%), type 2 (150%)
– General residential area: type 1 (200%), type 2 (250%), type 3 (300%)
– Commercial area: center (1,500%), general (1,300%), neighborhood (900%),
distribution (1,100%)
– Industrial area: private use (300%), general (350%), semi (400%)
– Green belt area: maintenance (80%), production (100%), nature (100%)
– Administrative area: maintenance (80%), production (80%), planning (100%)
– Natural environment area: 80%
– Development promotion area, natural park and park conservation area: 100%
– Marine conservation area: 80%
– Agriculture & industry complex: 150%

The building-to-land ratio is called the building coverage. Depending on the use of the area, the building coverage may differ. However, construction must not exceed the determined building coverage as described below (Art. 77 of the Act on the Utilization and Management of the National Territory):

– Residential area: private use (50%), general type 1 and 2 (60%), general type 3 (50%)
– Commercial area: center (90%), general (80%), neighborhood (70%), distribution
(80%)
– Industrial area: 70%
– Green belt area: 20%
– Administrative area: maintenance and production (20%), planning (40%)
– Agriculture & forestry area: 20%
– Natural environment area: 20%
– Village, natural park and park conservation area, agriculture & industry complex: 60%
– Development promotion site, marine conservation area: 40%
– National industrial complex & local industrial complex: 80%

The Ministry of Justice has established an exclusive immigration channel for foreign investors and holders of an APEC card for quick and convenient processing, which is in operation since Feb.1, 2004.
Foreign individual investors, foreign employees of foreign-invested companies, investment task forces, and other foreigners contributing to attracting FDI and their families as well as APEC card holders may use the orange color “investors and APEC card holders’ immigration counter.”
The exclusive immigration desk is expected to contribute and promote foreign investment. The test project at the Incheon International Airport will later be expanded to other airports nationwide.

According to Art. 7 of the Immigration Act, it is prohibited to do the following in order to bring a foreigner into the country:

– Invite foreigners by means of illegal measures such as false information or documents
or act as a broker conducting such activities;
– Apply for visa or approval of the certificate for recognition of visa issuance under
pretense or act as a broker for such activities.

For committing violations as described above, penalties are levied such as imprisonment of up to three years or fine of up to KRW 20 million.

Foreigners are eligible for the C-2 visa if they meet the following conditions:

– Help to set up the establishment of a foreign-invested company or domestic branch of a
foreign company;
– Enter Korea on invitation by a Korean public or private company and conduct market
research, conclude a contract, or consult with a domestic company;
– Short-term stay in Korea with the purpose to study the set up, repairs, inspection and
management skills of machinery (import and export);
– Other similar purposes of stay.

Documents to be submitted:

– Invitation (certified by a public law office with the purpose of invitation, trade
relationship between inviting and invited party, expected length of stay of the invited
party etc.
– Original certificate of business registration of inviting party, original certificate of tax
payments;
– Letter of intent (if it is the initial business transaction) and contract of purchase, copy of
L/C and certificate of declaration of foreign exchange (if already established trade
relationship);
– Certificate of employment or dispatch order of the invited party, resume and
identification (if Chinese national.)

If the foreigner has entered Korea at least three times with a C-2 visa within the last two years, it is possible to apply for the C-2 visa without an invitation but only with the certificate of employment and the application for the visa.

If a foreign investor with more than US$50 million investment and a D-8 visa has resided continuously in Korea for more than three years and has created employment, the investor is eligible to apply for the F-5 permanent residence visa under the following conditions:

– Over 30 years of age with ability to conduct economic activities;
– Not involved in business activities related to speculation, pleasure resorts, or other
sectors that go against moral social values;
– Continuously employing at least five Korean nationals as regular employees.
In case of citizens of the United States, a permanent residence permit is issued under the following conditions:
– An investment amount of at least US$1 million (in rural areas or suburban areas an
investment of US$500,000);
– Full-time employment of at least 10 U.S. citizens or those with permanent residence
– If the above two conditions are met, then a temporary residence permit with a validity
of two years is issued in order to avoid bogus investment and illegal immigration.
After two years, a regular residence permit is issued, if investment of the last two
years and employment of at least 10 people can be proven.