Do we have to register a pool villa as farm-stay lodging?
Not necessarily — depending on your operating format and location, different laws apply, such as farm-stay lodging under the Farm and Fishing Village Improvement Act or general lodging under the Public Health Control Act, so it's safer to confirm which registration you're subject to before registering your business. Pool-facility management costs such as water-treatment chemicals and safety equipment are recognized as business-related expenses, and while peak-season deposits may be taken in advance, revenue should, as a rule, be recognized at the time the stay actually takes place.
The Trickiest Part — Pool Facility Costs and Peak-Season Deposits
A seasonal business needs precise management of facility costs and prepaid revenue
Don't Miss Any Pool-Facility Maintenance Costs
Water-treatment chemical costs for a pool/swimming facility, safety equipment, and regular inspection costs are recognized as business-related expenses. Keep your receipts consistently on file.
Recognize Peak-Season Deposits at the Time of Actual Stay
It's common to take deposits months ahead when peak-season bookings are heavy, but as a rule, revenue is recognized at the time the stay actually takes place. Recording the full deposit as revenue the moment it's received can be an accounting error.
Income Structure Features of Pension & Pool Villas
Key Expense Items
Must-Know for Pension & Pool Villas
Split Pool Facility & Deposit Revenue by Category to Save on Taxes
From the pool facility to booking-platform fees, categorizing each item correctly is what cuts unnecessary tax
Long-Term Fixed Assets — Facilities Subject to Depreciation
Pool facilities: the pool itself, filtration equipment
Building/rooms: building, room fixtures
Once a per-unit purchase exceeds KRW 1 million, it's classified as a depreciable asset and must be expensed over its useful life.
Consumables — Immediate Expense
Water-treatment chemicals, bedding, and amenities are expensed in full at the time of purchase.
Personal-Service Costs — Cleaning & Maintenance Labor
Cleaning and maintenance staff require withholding-tax filing and submission of a payment statement regardless of hours worked.
Booking-Platform Fees
Intermediary fees from booking platforms such as Yanolja and Yeogieotae are a recurring monthly cost; record the total lodging fee as revenue and the fee as a separate expense.
| Category | Typical Examples | Tax Treatment |
|---|---|---|
| Long-term fixed assets | Pool facility, building, room fixtures | Depreciated once over KRW 1M |
| Consumables | Water-treatment chemicals, bedding, amenities | Fully expensed immediately at purchase |
| Personal service | Cleaning/maintenance labor costs | Withholding filed, payment statement submitted |
| Booking platform | Yanolja/Yeogieotae intermediary fees | Expensed immediately, total revenue recorded |