Hostel Business Registration

Common situations

Pick the question closest to your case: each one gives the conclusion first, then what changes it, the documents involved and the expected timeline.

1. I am planning to open a hostel in Korea. Which permit do I need first?

   Short answer A hostel business is a tourist accommodation business, so before registration you draw up a business plan and obtain approval from the head of the si/gun/gu, then set up the facilities and register the tourism business. The starting point is to check whether the building's use on the building register is accommodation.

   • The building is designated for accommodation use Apply for business plan approval, then set up rooms, amenities and cultural and information exchange facilities after approval and apply for registration.
   • The building is not designated for accommodation use Review a change of building use first, then move on to business plan approval.

   Documents

   Business plan; proof of ownership or right to use the property; facility floor and site plans; tourist accommodation facility list; tourism business registration application

   Timeline

   Statutory: registration 7 days / in practice, business plan approval and construction time come first

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2. I want to open a guesthouse in Korea. Should I register a hostel business or file an accommodation business report?

   Short answer Legally, a guesthouse falls into one of three categories depending on how it operates: urban homestay business for foreign tourists, an accommodation business report under the Public Health Control Act (공중위생관리법), or a hostel business, which is a tourist accommodation business. A hostel business requires both business plan approval and registration, and must have cultural and information exchange facilities.

   • A resident of an urban area offers lodging and meals to foreign tourists in the house they live in Consider urban homestay business registration for foreign tourists.
   • You run a general accommodation business for the public at large Check whether an accommodation business report under the Public Health Control Act applies.
   • You plan shared facilities and an exchange space for independent travellers such as backpackers Proceed with business plan approval and registration as a hostel business.

   Documents

   Building register; facility floor plan; operating plan (target guests and room layout)

   Timeline

   Hostel business registration 7 days / other schemes follow the processing periods in their own laws

3. Can I register a hostel business in a neighbourhood living facility building in Korea?

   Short answer For a hostel business you must first check whether the building's use on the building register is accommodation; if not, a change of building use must come first. Where change-of-use design work is needed, that part belongs to a licensed architect.

   • The building register shows accommodation use Proceed directly to business plan approval.
   • The building has another use, such as a neighbourhood living facility Check whether a change to accommodation use is possible at that location, complete the change, then apply for business plan approval.

   Documents

   Building register; land use plan confirmation; change of use documents

   Timeline

   Registration 7 days / in practice, the change of use period comes first

4. Can a hostel with dormitory rooms and only shared showers and a shared kitchen be registered?

   Short answer Yes. A hostel business may have guests share amenities such as toilets, showers and kitchens, and each room does not need its own bathroom. However, cultural and information exchange facilities for foreign and domestic tourists must be provided separately.

   • Rooms are mainly multi-bed and the bathrooms and kitchen are shared Provide enough amenities to avoid inconvenience to guests and secure an exchange facility such as a lounge or tourist information area.
   • Safety rules for multi-use businesses may apply given the facility's size or structure Check separately with the local fire station whether they apply.

   Documents

   Facility floor and site plans; tourist accommodation facility list

   Timeline

   Registration 7 days / in practice, it depends on whether facilities need supplementing

5. What conditions apply to hostel business plan approval in a general residential zone in Korea?

   Short answer The approval standards include that the business plan complies with the relevant laws and that you have the capacity and a plan to raise funds; in a general residential zone a road frontage requirement is added. A hostel business must adjoin a road at least 8 metres wide for at least 4 metres, and for hostel businesses of 20 rooms or fewer in certain areas, a 4-metre road standard applies.

   • The building is in a general residential zone First check the width of the road the site faces and the length of frontage.
   • The building is not in a residential zone Write the business plan focusing on compliance with the relevant laws and the funding plan.

   Documents

   Business plan; funding plan; site location map and road status data; building register

   Timeline

   In practice, the business plan approval period depends on the competent authority's review and any supplements

6. How long does hostel business registration take in Korea, from business plan approval to the registration certificate?

   Short answer The statutory processing period after the registration application is 7 days. The time needed for the earlier stages (business plan approval, facility works and securing title) is separate and grows if supplements are requested.

   • You lease a building whose facilities are already in place File the registration application right after business plan approval and receive the tourism business registration certificate.
   • Remodelling or a change of use is needed You apply for registration after the works or change of use are complete, so the overall schedule is longer.

   Documents

   Tourism business registration application; business plan; facility floor and site plans; tourist accommodation facility list

   Timeline

   Statutory: registration 7 days / in practice, business plan approval and construction time are added

7. To estimate the cost of hostel business registration, which preparation items should I look at first?

   Short answer A hostel business has no capital or minimum room count requirement, so the preparation burden comes mainly from the facility standards and the building's use. Checking first whether the building is designated for accommodation, whether amenities and exchange facilities are in place, and the title documents for the land and building reduces extra works and supplements.

   • The building use and facilities already meet the standards Focus on preparing the business plan approval and registration documents.
   • A change of use or works for exchange facilities are needed Fix the scope of works first, then reflect it in the business plan.

   Documents

   Building register; lease agreement or register extract; facility floor plan

   Timeline

   Registration 7 days / in practice, it depends on whether works or a change of use are needed

8. If I hire an administrative agent for hostel business registration in Korea, what will they handle?

   Short answer With your written authorization, an administrative agent prepares the business plan approval application, the tourism business registration application and attachments such as the facility list, files them with the si/gun/gu and responds to supplement requests. The agent does not handle building use determinations or building permits, fire safety or sanitation facility design, or booking operations.

   • The building and facility plan are settled The agent checks compliance with the registration standards and prepares and files the approval and registration documents.
   • The building use or design itself must change first Get a review from the relevant professional, such as an architect, first, then prepare the application documents based on the result.

   Documents

   Letter of authorization; building register; lease agreement or register extract; facility floor plan

   Timeline

   Registration 7 days / acceptance and the outcome are decided by the competent authority

9. We took over a hostel already in operation. By when must we report the business transfer?

   Short answer The transferee succeeds to the tourism business operator's rights and obligations and must file a report of succession to status with the registering authority within 1 month of the succession. The processing period for the report is 5 days.

   • An individual acquired the business Check that the transferee has no grounds for disqualification and submit the report of succession to status.
   • The business was succeeded through a corporate merger The surviving or newly formed corporation files the report, and you also check that none of its officers has grounds for disqualification.

   Documents

   Report of succession to status; proof of succession such as the transfer agreement; transferee's personal details; existing tourism business registration certificate

   Timeline

   Statutory: report within 1 month of succession, processed in 5 days

10. If a hostel has more than 20 rooms, must it register as a small hotel business instead?

    Short answer A hostel business has no minimum room count, so the business type is not decided by the number of rooms alone. With 20 or more but fewer than 30 rooms with bathrooms or showers, the small hotel business requirements apply; with 30 or more, the tourist hotel business requirements apply. If the focus is shared amenities and cultural and information exchange facilities, you register as a hostel business.

    • Each room has its own bathroom and you want a hotel rating Review the small hotel or tourist hotel business requirements (both are subject to hotel rating).
    • You plan shared bathrooms and kitchen with exchange facilities for independent travellers Register as a hostel business (not subject to hotel rating).

    Documents

    Room composition table; facility floor plan; tourist accommodation facility list

    Timeline

    Tourist accommodation business registration 7 days

11. I want to add rooms to my hostel. By when must I file a change registration?

    Short answer When the number or type of rooms or ancillary facilities change, apply for change registration within 30 days of the change. If the change involves the business plan, such as changing the site or land area or the total floor area by 10% or more of the originally approved area, obtain approval of the business plan change before making it.

    • You only rearrange rooms and the building area stays the same Submit the tourism business change registration application within 30 days of the change.
    • An extension or similar work changes the total floor area by 10% or more of the approved area Before the change, submit the business plan change approval application with a statement of reasons, then file the change registration after approval.

    Documents

    Tourism business change registration application; proof of the change; facility floor plan after the change; business plan change approval application and statement of reasons (where applicable)

    Timeline

    Statutory: change registration within 30 days; business plan change approval processed in 12 days