ENGLISH

Startup and operation of skin care salons
Selection of location and suitable commercial districts
Buildings permitted to contain skin care salons
- A skin care salon is only permitted to be located in a building where its use is classified as class 1 neighborhood living facility (Subparagraph 3(c) of attached Table 1 of the Enforcement Decree of the Building Act).
Specific-use areas permitted to contain skin care salons
- The operation of skin care salons is permitted in specific-use areas without restriction. However, such operation may be subject to restriction in any of the following specific-use areas (Article 76(1) of the National Land Planning and Utilization Act and Article 71(1) of the Enforcement Decree of the National Land Planning and Utilization Act):

Specific-use areas

Restrictions

▪ Class-1 exclusive residential area

▪ Class-2 exclusive residential area

The total floor area of the place of beauty arts business must be less than 1,000m2 (Subparagraph 1(b) of attached Table 2 and Subparagraph 3(c) of attached Table 3 of the Enforcement Decree of the National Land Planning and Utilization Act)

▪ Green conservation area

Urban or Gun planning ordinance of the area must allow the construction of buildings that constitute class 1 neighborhood living facilities. In this case, the total floor area used for the corresponding place of beauty arts business must be less than 500m2 (Subparagraph 2(b) of attached Table 15 of the Enforcement Decree of the National Land Planning and Utilization Act)

▪ Conservation management area

▪ Production management area

▪ Agricultural and forestry area

Urban and Gun planning ordinance of the area must allow the construction of buildings that constitute class 1 neighborhood living facilities (Subparagraph 2(a) of attached Table 18, Subparagraph 2(b) of attached Table 19, and Subparagraph 2(a) of attached Table 21 of the Enforcement Decree of the National Land Planning and Utilization Act)

▪ Natural environment conservation area

Business prohibited (attached Table 22 of the Enforcement Decree of the National Land Planning and Utilization Act)

Types of commercial districts suitable for skin care salons

Types of suitable districts

Merits and demerits

Features

Primary locations

(District centers or areas adjacent to subway stations)

Merits

▪ It is easy to secure a female customer base in connection with fashion businesses such as clothing stores and general stores

▪ High preference for fashion allows for increased total sales by providing high-priced services and products

▪ Has sufficient and high-quality demand

Demerits

▪ High-cost property rents overall are incurred due to the development of centrally-located commercial districts and areas adjacent to subway stations

▪ Due to the competition for scale, the profitability may be low compared to the size of investment

▪ Need to have countermeasures against competition with franchises of famous designer salons

Secondary locations (Neighborhood living facilities in residential areas)

Merits

▪ May achieve the efficiency of securing certain customer base by utilizing only 1-2 core workers in a small-scale establishment

▪ It is easier to compete for scale than in centrally-located commercial districts or areas adjacent to subway stations

▪ Services become rapidly famous through word-of-mouth and thus it is advantageous to founders with satisfactory skills and insufficient capital

Demerits

▪ As the demand is limited and small and medium-sized salons divide the market, there are clear limitations to raising the revenue

▪ Small salons will have to face limitations such as the failure to accommodate customers when demand is high

<Source: Analysis of business types of micro enterprises in the service industry – Beauty Arts Business, Small Enterprise and Market Service>