Business license
Businesses that require licensing
- Any person who intends to engage in any of the following businesses, shall obtain a license from the Minister of Food and Drug Safety, the Mayor of a Special Self-Governing City, the Governor of a Special Self-Governing Province or the head of a Si/Gun/Gu (hereinafter referred to as the “licensing office”), by type of business or each place of business (Former part of Article 37(1) of the Food Sanitation Act and Subparagraph 2 of Article 23 of the Enforcement Decree of the Food Sanitation Act).
· Karaoke bar business
· Entertainment bar business
Conditions and restrictions for obtaining the business license
- Where a business belongs to any of the following cases, no business license shall be obtained (Article 38(1) of the Food Sanitation Act).
· Where the relevant business facilities fail to meet the criteria for facilities under Article 36 of the Food Sanitation Act (Subparagraph 1 of Article 38(1) of the Food Sanitation Act)
· Where a business operator intends to engage in the same type of business in the same place before 6 months have elapsed since the business license was canceled due to a violation of the Food Sanitation Act and subordinate regulations (excluding cases where a business license was canceled due to a violation of Article 44(2)-1 of the Food Sanitation Act, and where a business license was canceled in accordance with Article 75(1)-19 of the Food Sanitation Act), or since the business license was canceled in accordance with Articles 16(1) or 16(2) of the Act on Labeling and Advertising of Foods.
√ However, a business license may be issued if the business license was canceled after all of business facilities were removed.
· Where a business operator intends to engage in the foodservice business in the same place before 2 years have elapsed since an order to close down his/her place of business was issued for employing juveniles as entertainment workers and making them provide entertainment services (Subparagraph 1 of Article 44(2) of the Food Sanitation Act) or for committing an offence under Article 4 of the Act on the Punishment of Arrangement of Commercial Sex Acts, etc. (Subparagraph 19 of Article 75(1) of the Food Sanitation Act)
· Where the same person (including the representative of a corporation) intends to engage in the same type of business before 2 years have elapsed since the business license was canceled for violating the Food Sanitation Act (excluding cases where a business license was canceled for violating Articles 4 through 6, 8, or 44(2)-1 of the Food Sanitation Act and where a business license was canceled in accordance with Article 75(1)-19 of the Food Sanitation Act), or since the business license was canceled in accordance with Article 16(1) and (2) of the Act on Labeling and Advertising of Foods) [However, this condition is not applicable when the business license becomes canceled due to complete demolition of the place of business (excluding demolishment of the place of business to avoid administrative penalties).
· Where the same person (including its representative for a corporation) intends to engage in food service business before 3 years have elapsed since the business license was canceled for employing a youth to provide entertainment service as entertainment worker (Article 44(2)-1 of the Food Sanitation Act), or since the business license was canceled for engaging in a prohibited act under Article 4 of the Act on the Punishment of Arrangement of Commercial Sex Acts, Etc. (Article 75(1)-19 of the Food Sanitation Act) Articles 16(1) or 16(2) of the Act on Labeling and Advertising of Foods).
· Where a person (including its representative for a corporation) who had been issued with an order to close down his/her business for selling harmful foods, etc. (Article 4 of the Food Sanitation Act), meat affected by disease, etc. (Article 5 of the Food Sanitation Act), chemical synthetics, etc. with no prescribed standards and specifications (Article 6 of the Food Sanitation Act), and poisonous equipment, etc. (Article 8 of the Food Sanitation Act) intends to engage in the same type of business before 5 years have elapsed since such order was issued
· Where it is deemed clearly necessary to restrict a license of food service business that the Special City Mayor, the Metropolitan City Mayor, the Special Self-Governing City Mayor, the Province Governor, or the Special Self-Governing Province Governor designates and publicly announces for the purpose of public health
· Where any person who intends to obtain a business license is an adult placed under the protection of a legal guardian or was declared bankrupt and has not yet been reinstated
Procedure for obtaining a business license
Documents to submit when applying for a business license
- A person who intends to obtain a business license shall ensure that his/her business is equipped with the required facilities and submit the following documents (including electronic documents) to the licensing office (Former part of Article 37(1) of the Food Sanitation Act and Article 40(1) of the Enforcement Regulations of the Food Sanitation Act)
1. Application for business license (Attached Form 30 of the Enforcement Regulations of the Food Sanitation Act)
2. A certificate of completion of training (applicable to those who received training in advance)
3. A license or notification certificate for excursion ship and ferry business (applicable only if an operator intends to operate a business at an excursion ship wharf or a ferry wharf in structures floating on the water)
4. A water quality inspection (test) report issued by a drinking water quality inspection institution pursuant to the Drinking Water Management Act (applicable only if groundwater, etc. rather than tap water, is to be used in the manufacturing process for drinking water or foods, or in cooking or cleaning of foods)
Issuance of a business license
- The Minister of Food and Drug Safety, the Mayor of a Special Self-Governing City, the Governor of a Special Self-Governing Province or the head of a Si/Gun/Gu may additionally attach necessary conditions when he/she grants a business license (Article 37(2) of the Food Sanitation Act).
- When a licensing office permits a business to operate, it shall issue a business license (Attached Form 32 of the Enforcement Regulations of the Food Sanitation Act) (Former part of Article 40(4) of the Enforcement Regulations of the Food Sanitation Act).
Payment of registration and license tax
Payment of registration and license tax
- A person who has received a class 1 business license for a karaoke bar business or an entertainment bar business must file a registration and license tax return and pay tax to the head of the local government having jurisdiction over the place of tax payment before a license certificate is issued to him/her (Article 35(1) of the Local Tax Act and Article 39 and Attached Table 1 of the Enforcement Decree thereof).
- Tax rates of registration and license tax on a class 1 business license shall be determined based on the following classification (Article 34(1) of the Local Tax Act).
Classification
|
Cities with a population of over 500,000
|
Other cities
|
Guns
|
Class 1
|
KRW 67,500
|
KRW 45,000
|
KRW 27,000
|
Purchase of urban railroad bonds
- A person who has received a business license must purchase urban railroad bonds with the amount prescribed ordinances of Si/Do under the following classification (Article 21 (1) subparagraph 1 of the Urban Railroad Act and Article 14 and attached Table 2 of the Enforcement Decree of the Urban Railroad Act).
Target of purchase
|
Scope of purchase amount
|
A new license for an entertainment bar business
|
KRW 2,100,000
|
A new license for a karaoke bar business
|
KRW 1,500,000
|
Sanctions for violations
Measures to close a business establishment
- Where any person conducts business without obtaining a license, the Minister of Food and Drug Safety, a Mayor/Do Governor or the head of a Si/Gun/Gu may order the relevant public officials to take any of the following measures to close down the his/her place of business (Article 79(1) of the Food Sanitation Act).
· Removing or eliminating the marking of the relevant place of business, such as signboards
· Posting a notice showing that the relevant place of business is not a legal place of business
· Sealing that makes the relevant business facilities and apparatuses unavailable for use
Criminal punishment
- Any person who fails to obtain a business license shall be punished by imprisonment for no more than 10 years or be subject to a fine not exceeding KRW 100 million (Subparagraph 3 of Article 94(1) of the Food Sanitation Act).
- Any person who fails to fulfill the requirements pursuant to Article 37(2) of the Food Sanitations Act while obtaining a business license shall be punished by imprisonment for no more than 3 years or be subject to a fine not exceeding KRW 30 million (Subparagraph 5 of Article 97 of the Food Sanitation Act).