ENGLISH

Establishment and operation of makeup shops

Selection of location and suitable commercial districts

Selection of location and suitable commercial districts

Buildings permitted to contain makeup shops

- A makeup shop is only permitted to be located in a building where its use is classified as class 1 neighborhood living facility (Article 2 (2) of the Building Act and Article 3-5, and Subparagraph 3 (c) of Attached Table 1 of the Enforcement Decree of the Building Act).

Specific-use areas permitted to contain makeup shops

- Outside the following specific-use areas, operation of makeup shops is not subject to any restrictions. However, even in the specific-use areas, such an operation is permitted if the following applies (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 Area	Details
▪ Class-1 exclusive residential area ▪ Class-2 exclusive residential area	Where the total floor area of the relevant business establishment is less than 1,000m2 (Attached Table 2 and Attached Table 3 of the Enforcement Decree of the National Land Planning and Utilization Act)
▪ Green conservation area	Where the urban or Gun planning ordinance of the relevant area allows the construction of buildings that constitute class 1 neighborhood living facilities. In this case, the total floor area used for the relevant beauty arts business establishment must be less than 500m2 (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	Where the urban and Gun planning ordinance of the relevant area allows the construction of buildings that constitute class 1 neighborhood living facilities, operation is possible (Attached Table 18, Attached Table 19 and Attached Table 21 of the Enforcement Decree of the National Land Planning and Utilization Act)

※ If any person wishes to operate a makeup shop, he or she should, when looking for a store, obtain a building register from the district office or Minwon24 website (http://www.gov.kr/) to identify whether the building is unauthorized, how large the area is, and what the purpose of the building is, so as to make sure that the business operation is permitted at the building before signing a lease agreement.

Types of commercial districts suitable for beauty arts businesses

Types of suitable commercial districts	Merits and demerits	Features
Primary locations (District centers or areas adjacent to subway stations)	Merits	▪ Able 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 incurred due to the development of centrally located commercial districts and areas adjacent to subway stations ▪ Due to the competition for scale, decline in profitability compared to the size of investment ▪ Need to have countermeasures against competition with franchises of famous designer shops
Secondary locations (Neighborhood living facilities in residential areas)	Merits	▪ Able to secure certain customer base by utilizing only 1-2 core workers in a small-scale establishment ▪ 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 who have satisfactory beauty arts skills but lack sufficient capital
	Demerits	▪ Limitations on revenue as the demand is limited, and small and medium-sized stores divide the market ▪ Limitations of small shops such as the failure to accommodate customers when demand is concentrated