Can You Run an Airbnb Out of a Residential Accommodation Facility?

TL;DR

Can individuals legally operate Airbnbs in residential accommodation facilities?

Hospitality Law with Attorney Song Ji-eun

03. Can You Run an Airbnb Out of a Residential Accommodation Facility?

Writer: Song Ji-eun, Attorney at Law

Editor: Lee Chae-eun, ONDA Manager

Last time, we covered regulations around residential accommodation facilities. Now let's go one step further—something many people want to know but can't find a clear answer for: Can individuals legally operate Airbnbs in residential accommodation facilities? Let's dig in.

Revisiting What "Residential Accommodation Facility" Actually Means

A residential accommodation facility is a building designed for commercial lodging, not residential living—similar to a serviced residence or officetel. These units have living amenities and can be run as short-term lodging businesses, like hotels. They're classified as buildings under the Building Act, not housing under the Housing Act.

The Enforcement Decree of the Public Health Control Act defines them in Article 4 as "businesses providing guests with sleeping and lodging facilities (including cooking facilities) and related services."

Public Health Control Act Enforcement Decree, Article 4 (Lodging Business Categories) 1. Lodging Business (General): Providing guests sleeping and lodging facilities (excluding cooking facilities) and related services 2. Lodging Business (Residential): Providing guests sleeping and lodging facilities (including cooking facilities) and related services

So to operate one, you need building permits from the Ministry of Land, Infrastructure and Transport, and lodging business approval from the Ministry of Health and Welfare.

Facility and Equipment Requirements

Articles 2 and 3 of the Enforcement Rules of the Public Health Control Act require residential accommodation facilities to meet the following standards and file a declaration with the city/county/district office:

a. Residential accommodation facilities must have cooking equipment and ventilation systems or windows. If cooking equipment is installed indoors, it must be fixed installations—either in each room or in a shared kitchen.

b. Each room must have a private bathroom or shower. (Exception: hostels under the Tourism Promotion Act may use shared facilities.)

c. If the facility occupies part of a building, it must have at least 30 rooms OR occupy at least one-third of the building's total floor area. (Local governments may relax these thresholds through ordinances.)

Can Individuals Actually Run Airbnbs in Residential Accommodation Facilities?

In principle, yes—if you meet the facility requirements above and file the proper declarations, you can legally operate.

But in practice, filing public health business declarations and maintaining hygiene standards makes it extremely difficult for individuals to operate these facilities themselves.

Specifically, to run an Airbnb-style operation in a residential accommodation facility, you need to meet the "30+ rooms OR one-third of building floor area" threshold—and it's virtually impossible for individuals to meet these requirements and manage hygiene compliance at the same time.

As a result, the Ministry of Health and Welfare recommends using management companies for Airbnb-style operations in residential accommodation facilities. In reality, local governments already block individual operators to prevent lodging business proliferation. A classic example: Busan's residential accommodation facility "Haeundae LCT" was sold with claims that individual owners could operate lodging businesses—but the local government ruled individuals didn't meet the criteria and denied approval.

With recent legislative amendments strengthening lodging business standards, it's now virtually impossible for individuals to operate residential accommodation facilities as lodging businesses.