Modern information and communication technologies, including internet of things, artificial intelligence, cyber physical system, big data, cloud computing, robotics and mobile sensor network, are believed to enable the fourth industrial revolution, Industry 4.0. Inherently, industrial revolution indicates a dramatical increase in productivity of production systems. In this context, smart factory has emerged as an important topic for both researchers and practitioners. Smart factory is manufacturing facility equipped with modern information and communication technologies, and its objective is to utilize the resources in manufacturing shop floors more efficiently so that competitiveness of manufacturing company is maximized. It is straightforward that various software and hardware solutions are integral parts of smart factory. However, human operators also play essential roles in smart factory environment. In other words, smart factory is also a sort of highly complex socio-technical system where human operators and modern technologies interact with each other, and it might raise a wide range of legal issues in future. The objective of this paper is to examine the legal environment of smart factory and discuss the potential legal issues. Especially, we focus on legal issues related to government support system and occupational safety and health. Consequently, we expect that this paper will provide an meaningful insight into the legal aspects of smart factory.