Factory Registration Cancellation: Complete Guide to Administrative Appeals and Administrative Litigation

Factory registration cancellation is a serious problem that directly impacts business operations. Are you facing this situation right now? If you've received a factory registration cancellation order, you need to understand exactly what remedies are available and what procedures you must follow. This article explains all the steps involved in seeking relief from a factory registration cancellation order.

What is a Factory Registration Cancellation Order?

A factory registration cancellation order is an administrative action by a provincial or metropolitan governor to cancel a factory's registered status in accordance with the "Industrial Complex Activation and Factory Establishment Act." Once you receive a cancellation order, you lose your legal status as a factory and forfeit all benefits of factory registration, including tax incentives, various subsidies, and relaxed zoning restrictions.

Main Reasons for Factory Registration Cancellation

1. Change of factory use (operating a business other than the designated industry)

2. Prolonged non-operation without filing a closure report

3. Violation of legal obligations such as exceeding environmental pollution standards

4. Failure to operate at the original location after factory relocation

5. Continued failure to meet registration requirements (floor area, asset scale, etc.)

6. Registration obtained through false or fraudulent means

If you receive such an order, you must immediately begin the remedy procedure.

Factory Registration Cancellation Relief Method Step 1: Administrative Appeal (Objection)

The first remedy available after receiving a factory registration cancellation order is filing an administrative objection (이의신청). An administrative objection is a procedure through which you submit your opinion to the administrative agency (provincial or metropolitan government office) that the cancellation order is improper.

Requirements for Administrative Objection

• File within 60 days from the date of receiving the cancellation notice

• Submit to the administrative agency that issued the order

• Can be filed in writing or verbally (written submission recommended)

• Statement of objection reasons is mandatory

Administrative Objection Procedure

1. Receive the cancellation notice

2. Prepare the objection statement (refute the reasons for cancellation, specify grounds for objection)

3. Gather supporting documents (business resumption plan, facility improvement certificate, etc.)

4. Submit to the relevant department of the provincial or metropolitan government office

5. Administrative agency reviews the objection (typically 30–90 days)

6. Receive decision notice (approval or dismissal)

An administrative objection is the fastest and most cost-effective first-stage remedy.

Filing within 60 days from the date of the cancellation notice is mandatory.

Factory Registration Cancellation Relief Method Step 2: Administrative Review

If your administrative objection is dismissed or denied, the next step is administrative review. Administrative review is a process of petitioning the Central Administrative Review Committee (or Regional Administrative Review Committee), where a more neutral and rigorous examination takes place.

Requirements for Administrative Review

• File within 90 days from receiving the dismissal notice of your administrative objection

• Submit to the Administrative Review Committee (Central or Regional)

• Prepare an administrative review petition

• Attach documents that specifically prove the illegality or impropriety of the cancellation order

Administrative Review Procedure

1. Confirm the subject matter of review (dismissal or denial of administrative objection)

2. Prepare administrative review petition and supporting documents

3. Submit to the competent administrative review committee

4. Written examination by the review committee (oral hearing can be requested)

5. Review proceedings (typically 2–3 months)

6. Delivery of the review decision

Achieving a favorable result in administrative review requires legal expertise.

Grounds for Relief Commonly Recognized in Administrative Review

- Long lapse of time between the occurrence of the grounds for cancellation and the issuance of the order, constituting a violation of good faith principle

- Abuse of discretion by the administrative agency (similar situations handled with corrective orders rather than cancellation)

- Non-compliance with required procedures (failure to provide advance notice or conduct a hearing)

- Legal error in the grounds for cancellation itself

Factory Registration Cancellation Relief Method Step 3: Administrative Litigation

If the outcome is still unfavorable even after administrative review, the final remedy is administrative litigation. Administrative litigation is a court proceeding where the legality of the cancellation order is judged. While it offers the most fair judgment, it requires significant time and expense.

Requirements for Filing Administrative Litigation

• File within 90 days from receipt of the administrative review decision

• File in the competent administrative court

• Prepare a complaint (petition) and attach supporting documents

• Pay litigation fees (typically 30 per 1,000 of the damages caused by the cancellation order)

Administrative Litigation Procedure

1. Confirm jurisdiction of the administrative court

2. Draft the complaint (specifically argue the illegality of the cancellation order)

3. File with the administrative court and pay fees

4. Respondent (provincial or metropolitan government office) submits an answer

5. Conduct oral argument session (one or more hearings)

6. Deliver judgment (typically takes 1–2 years)

7. If necessary, file an appeal or final appeal (Supreme Court)

An administrative court judges only legal legality, not mere administrative convenience.

Administrative litigation should be approached carefully as a final remedy.

Grounds with High Likelihood of Success in Administrative Litigation

- Relevant laws governing the cancellation contain constitutional defects

- Evidence presented by the administrative agency lacks objectivity

- Situation changed due to evidence of business resumption (grounds for relief have disappeared)

- No advance notice or hearing was given before issuing the cancellation order

Precautions When Seeking Relief from Factory Registration Cancellation

Essential Verification Items When Filing for Relief

1. Understand the exact reasons for the cancellation order (review the notice carefully)

2. Re-examine whether your situation truly falls within the cancellation grounds

3. Develop measures to resolve the cancellation grounds (improve environmental standards, resume operations, etc.)

4. Review the possibility of preliminary consultation with the administrative agency

| Category | Details | Importance |

|----------|---------|------------|

| Deadline Compliance | 60 days for objection, 90 days for review, 90 days for litigation | Essential |

| Required Documents | Proof of business resumption, facility improvement certificate, proof of environmental standard compliance | Essential |

| Expert Assistance | Consultation with administrative attorneys or lawyers (strongly recommended, especially for litigation stage) | Strongly Recommended |

| Dismissal Criteria | Insincere arguments or factual distortion | Caution |

Especially if environmental pollution is the grounds, it is advantageous to first demonstrate compliance with standards through facility improvements before filing for relief.

Timeline and Cost for Factory Registration Cancellation Relief

| Relief Stage | Time Required | Estimated Cost | Success Rate |

|--------------|--------------|-----------------|--------------|

| Administrative Objection | 30–90 days | 500,000–1,000,000 KRW (administrative attorney fees) | 20–30% |

| Administrative Review | 2–3 months | 1,000,000–2,000,000 KRW (administrative attorney fees) | 25–40% |

| Administrative Litigation | 1–2 years | 3,000,000–5,000,000 KRW (lawyer fees) | 30–50% |

| All Stages | 2–3 years | 5,000,000–8,000,000 KRW | — |

Success rates vary significantly depending on the degree of illegality in the cancellation grounds and the completeness of submitted materials.

Successful Relief Cases: Common Patterns

Common Characteristics of Successful Relief Cases

1. Non-compliance with Required Procedures – cases where advance notice or hearing was not conducted

2. Grounds for Cancellation Have Been Resolved – environmental standards initially exceeded were improved before filing for relief

3. Abuse of Discretion – evidence exists that similar cases were handled with corrective orders rather than cancellation

4. Violation of Good Faith Principle – cancellation issued more than 5 years after the grounds arose

5. Misinterpretation of Legal Provisions – the administrative agency misapplied statutory language

Seek Relief from Factory Registration Cancellation with Dasiibom Administrative Attorneys

Factory registration cancellation involves extremely complex administrative procedures, and a small mistake can determine the outcome of the entire relief process. Each stage from administrative objection to administrative litigation requires legal expertise and experience.

Dasiibom Administrative Attorneys provides the following specialized services:

- Analysis of cancellation grounds and development of objection strategy

- Preparation of administrative review petition and supporting evidence

- Coordination with dedicated lawyers for administrative litigation

- Real-time deadline management and progress monitoring

Key Summary:

Factory registration cancellation relief proceeds through three stages: ① Administrative Objection (within 60 days) → ② Administrative Review (within 90 days) → ③ Administrative Litigation (within 90 days). Deadline compliance at each stage is mandatory, and success without legal expertise is difficult.

We strongly recommend consulting with an expert to determine whether your factory registration cancellation is truly lawful and whether there is room for relief. Dasiibom Administrative Attorneys offers a free initial consultation to accurately diagnose your situation and provide customized solutions.

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