Scope of Factory Establishment
The term "factory establishment" stands for newly constructing or enlarging a factory (Article 2.-20 of the 「Industrial Cluster Development and Factory Establishment Act」). The term "new construction of factory" means to construct a new building (including the construction of a structure) or to install manufacturing facilities and others by changing the use of the existing building to that of a factory. The term "enlargement of a factory" means to enlarge the building area or the site area of a registered factory (Article 2.-21 and 22. of the 「Industrial Cluster Development and Factory Establishment Act」). Concepts to be compared with the definition of factory establishment are relocation of a factory, alteration of the type of business, installation and approval of manufacturing facilities, registration of new factories, and alterations to registration.- The term 'relocation of a factory' means to close down a factory that is registered and relocate it to another location, and then to newly construct or enlarge a factory running the same type of business (Article 25.(3) of the Enforcement Decree of the 「Industrial Cluster Development and Factory Establishment Act」).
- The term "alternation of the type of business" means to change the type of business of a factory of which its establishment has been approved or of a registered factory or to add another type of business to the factory concerned (Article 18-2.(4) of the enforcement decree of the 「Industrial Cluster Development and Factory Establishment Act」).
- The term "installation of manufacturing facilities" means to install the manufacturing facilities upon approval from the head of Si/Gun/Gu in order to conduct manufacturing business in all or part of a factory building that has been constructed under the approval of factory establishment or a factory building that has been canceled its registration of which the construction area is not less than 500 square meters (Article 14-3. of the 「Industrial Cluster Development and Factory Establishment Act」).
- The term "registration of new factory and alteration of registration" stands for the registration or alteration of registration by the head of Si/Gun/Gu or the management agency made to the factory register upon the application of owner or possessor of a factory not subject to a new establishment or an expansion of 500㎡ or larger, approval of change of business type, or new establishment, expansion, relocation, or change of business type (Article 16 (2) of the Industrial Cluster Development and Factory Establishment Act).