The purpose of this study is to present improvement for classification system of current neighborhood living facility to correspond rapid social change and various industries after understanding its status and problem. In current Building Standard Law, various kinds of buildings are classified for their structure, purpose of use, and building types. The Neighborhood Living Facility is divided into First Neighborhood Living Facility and Second Neighborhood Living Facility with applying area standards, according to facilities of convenience degree for neighborhood inhabitants. This classification, however, has problem in an arbitrary decision and applying of buildings without any definition or standards to adopt. And, there are some mixed neighborhood public functional facilities and amusement business affecting public morals among the Neighborhood Living Facility, so hazard environmental problems are also existed. According to the improved program, the study presents a prompt adoption of new facilities according to various industry increase, with minimum public discontent over adopted area standards. This study suggests making a clear scope through reclassification of Neighborhood Living Facility within the scope of the law on current Neighborhood Living Facility and an improvement plan of introducing necessary definitions on purpose of facility.