Barriers to starting rural guesthouse businesses to be sharply lowered ... prior-residency requirement scrapped, all three meals allowed

[Financial News] Entry barriers to the rural guesthouse business, intended to boost the incomes of farmers and people returning to farming or rural areas, will be lowered. The “prior-residency requirement” that operators live in the relevant city, county or district for at least six months will be scrapped. Local governments will also be allowed to set the floor-area requirements for homes used in the business at their discretion through local ordinances. To encourage corporate participation, social enterprises and social cooperatives will also be allowed to operate vacant-home guesthouse businesses.
The rural guesthouse business provides lodging, cooking facilities and breakfast to guests using homes owned and occupied by residents of rural or quasi-rural areas.
On the 26th, the Ministry of Agriculture, Food and Rural Affairs said that a partial amendment to the Act on the Promotion of Exchanges between Urban and Rural Areas (Urban-Rural Exchange Act), which passed the National Assembly plenary session on October 1, will be promulgated on the 27th. The amended law will take effect on October 28 next year, one year after promulgation. The amendment focuses on transferring the provisions concerning rural guesthouses from the existing Act on the Maintenance and Improvement of Agricultural and Fishing Villages to the Urban-Rural Exchange Act, and easing regulations to promote rural guesthouses.
The Ministry of Agriculture, Food and Rural Affairs has decided to abolish the prior-residency requirement for rural guesthouse businesses. Previously, operators had to live continuously in the relevant city, county or district for at least six months if they owned the home, or at least three years if they rented it. These requirements will be removed. Local governments will also be able to set different rules through ordinances for the size of homes used in rural guesthouse businesses, which was previously limited to a gross floor area of less than 230 square meters. However, to prevent damage to rural landscapes and conflicts among residents resulting from indiscriminate expansion of the criteria, a ministerial ordinance will set a cap on the number of guest rooms.
The range of meals that can be served to rural guesthouse guests has been expanded from breakfast to include lunch and dinner. When meals other than breakfast are served, the relevant food sanitation laws and regulations will apply to ensure proper hygiene management as the scope of meal service expands. In view of the aging rural population, an heir who lives at the premises will also be allowed to succeed to the operator’s status if the rural guesthouse operator dies.
Regulations have also been eased for businesses operating vacant-home regeneration guesthouses, one type of rural guesthouse business. The rules now allow local governments, village enterprises, social enterprises, social cooperatives, nonprofit corporations and others to operate them. An exception to the actual-residency requirement will also apply to vacant-home regeneration guesthouse businesses. To ensure guest safety and facility management, operators must appoint a manager. Violations are punishable by up to six months in prison or a fine of up to 5 million won.
The Ministry of Agriculture, Food and Rural Affairs also said that an amendment to the Animal Protection Act will be promulgated on the 27th. It establishes a legal basis for courts to issue bans on keeping animals for up to five years against people who have committed serious animal abuse crimes. It will take effect one year later. The amendment allows for an administrative fine of up to 1 million won for using a leash shorter than 2 meters. Previously, animal abuse was recognized in such cases only if the animal died or was injured; the law will now take a stricter approach.
Meanwhile, an amendment to the Act on the Prevention of Contagious Animal Diseases will also be promulgated on the 27th and take effect six months later. The government will raise the cap on compensation ultimately paid to farms for livestock infectious diseases from 80% to 90% of the assessed value of the livestock. Farms that are the first to report a major livestock infectious disease may receive up to 100% of the assessed value. Under the existing system, compensation is reduced when farms affected by major livestock infectious diseases, such as foot-and-mouth disease and highly pathogenic avian influenza (AI), violate disease-control requirements. Some of the reduction could be waived if a farm was recognized for being the first to report the disease or for making active disease-control efforts, but the final payment could not exceed 80% of the assessed livestock value.


[email protected] Choi Yong-jun, Agriculture Specialist Reporter