Bukchon, Ikseon-dong, Hyehwa-Myeongnyun-dong, Buam-dong, and West Side of Gyeongbokgung Palace Targeted
Building Regulations Eased for Franchise Owners of Convenience Stores and Coffee Shops
Jongno-gu, Seoul (District Mayor Jeong Munheon) is easing franchise business building regulations for small business owners operating within the district unit planning zones.
The district recently established the "Franchise Business Operation Permit Processing Standards" for franchise owners and decided to allow locations limited to retail stores (convenience stores) and food and beverage establishments (coffee specialty shops). The targeted areas include a total of five locations within the district unit planning zones: Bukchon, Ikseon-dong, Hyehwa·Myeongnyun-dong, Buam-dong, and the west side of Gyeongbokgung Palace.
Jeong Munheon, Mayor of Jongno-gu. Provided by Jongno-gu Office.
These areas had restricted franchise business operations since 2016 due to issues such as gentrification causing rapid rent increases from excessive commercialization, and the disappearance of lifestyle and cultural stores with unique content, leading to a loss of local identity.
However, applying the changed standards to franchise owners who had obtained permits and were operating before the restrictions were imposed resulted in complaints, as they faced unfavorable contract terms from the franchise headquarters. A representative example is the increase in re-franchise fees.
In response, Jongno-gu introduced new franchise business permit standards last month, targeting retail stores (convenience stores) and food and beverage establishments (coffee specialty shops). The permit conditions apply to cases where "the use of the changed franchise business is the same as the existing franchise business" and "the operating area (including location) of the changed franchise business is within the operating area of the existing franchise business." However, if the business changes to a non-franchise brand, it cannot be changed back to a franchise business later.
District Mayor Jeong Munheon stated, "To protect Jongno's identity and residential rights, we have restricted franchise entries within the district unit planning zones and only allowed operations for previously permitted franchise owners. However, issues arose where unfavorable conditions were applied during contracts with headquarters, so we established new standards," adding, "We will continue to identify and abolish various regulations that cause inconvenience to residents."
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