A person who takes over a business from another person must file a report on the succession of position of the operator.
Ground for business succession- When a business operator transfers his/her business or dies, or the merger of corporations is carried out, the transferee, successor, a corporation surviving such merger or a corporation established after such merger will be succeeded to the status of the relevant business operator (Article 39(1) of the Food Sanitation Act).
- A person who has acquired all of the business facilities in accordance with the procedures that fall under any of the following will succeed the status of the relevant business operator. In such a case, the notification of commencement of business filed by the previous operator loses its effect (Article 39(2) and Article 29(2) of the 「Food Sanitation Act」).
· An auction in accordance with the Civil Execution Act
· Realization under the Debtor Rehabilitation and Bankruptcy Act
· Sale of seized property under the National Tax Collection Act, the Customs Act, or the Local Tax Collection Act
· Other procedures corresponding to the procedures provided above
Reporting on the transfer of position of the operator- A person who has succeeded the status of the relevant business operator must notify the Governor of a Special Self-Governing Province or the head of a Si/Gun/Gu of the fact within 1 month (Article 39(3) of the Food Sanitation Act).
※ Any person who violates this provision will be punished by imprisonment for no more than 3 years or a fine not exceeding KRW 30 million (Subparagraph 1 of Article 97of the Food Sanitation Act).
- A person who intends to file a report on the transfer of position must submit the following documents to a notifying office (Article 39(3) of the Food Sanitation Act and Article 48(1) of the Enforcement Regulations of the Food Sanitation Act).
· A report on transfer of position of the operator (Attached Form 49 of the Enforcement Regulations of the Food Sanitation Act)
· A certificate of commencement of business
· Documents that support the transfer of rights (including electronic documents)
√ For a business transfer, a copy of document that proves such transfer
√ For an inheritance,document(s) demonstrating that he/she is the rightful heir
√ For other cases, documents that prove that the operator's position has been transferred for each reason
· Education completion certificate (only for those who havealready undergone food hygiene education)
· As for a delegator with the delegator’s own signature, a copyof his/her ID and power of attorney (only if the transferee has delegated the authorityto declare business succession)
· Documents demonstratingthat the declarant has subscribed to fire liability insurance
- If the person who intends to report on thesuccession of position seeks to change the title or trade name of the businessestablishment, he/she may report such facts in combination at the same time(Article 48(5) of the Enforcement Regulations of the FoodSanitation Act).
- The head of the Ministry of Food and Drug Safety or the Metropolitan Autonomous City Mayor, the Special Self-Governing Province Governor, or the head of a Si/Gun/Gu must notify the reporter of the receipt of report within 3 days from the date on which the report was filed (Article 39(4) of the 「Food Sanitation Act」).