REB: Korea Real Estate Board

Standard house price survey & appraisal agencies are designated by the Minister of Ministry of Land, Infrastructure and Transport in accordance with the provisions of Article 16 (4) of the Act on the Public Announcement of Real Estate Values.

(Performance body was changed from appraisal bodies to the Korea Real Estate Board with the enforcement of the Act on the Public Announcement of Real Estate Values on September 1, 2016.)

Adequate prices are calculated and officially notified according to the procedure prescribed in the Act on the Public Announcement of Real Estate Values for standard detached houses on January 1 of each year.

• Act on the Public Announcement of Real Estate Values
• Guidelines for the selection and management of standard houses (Directive of the Ministry of Land, Infrastructure and Transport No. 1360).
• Criteria of inspection and calculation of reference housing price (Directive of the Ministry of Land, Infrastructure and Transport No. 1423).

1. ASelection of standard houses
   • According to the standard house selection standard, 240,000 representative houses (about 5%) were selected as standard houses from among some 4.2 million detached houses across the entire country.
     (Balanced selection in consideration of main building structures and service areas, etc.)
2. BSurvey of properties of standard houses and analysis of areas
   • Physical properties of houses are surveyed after identifying the properties of houses that are important pricing factors.
   • Accurate, officially notified prices are calculated by analyzing the pricing factors that have an overall influence on the price levels of detached houses.
3. COpinion hearing and objection
   • (Opinion hearing) Opinions on the expected officially notified prices are heard from si/gun/gu and house owners before the official notification of standard house prices.
   • (Objection) Any person who has an objection to the standard house prices after the official notification thereof may lodge an objection.
4. DCalculation of standard house prices
   • Adequate prices of standard houses are calculated in accordance with the provisions of the Act on the Public Announcement of Real Estate Values.
   • The Minister of Land, Infrastructure and Transport officially notifies (draft of) the calculated officially notified prices via the Central Commission on the Public Announcement of Real Estate Values.

• 1. Request for survey/appraisal

  The Act on the Public Announcement of Real Estate Values
  The Korea Real Estate Board selected in accordance with Article 16 (4) performs the work.

• 2. Discussion on balance

  Secure balance among areas

  • Discussions on balance are held in the following four steps: meeting to discuss market analysis of officially notified prices;
    discussion on balance among surveyors in si/gun/gu;
    discussion on balance among si/gun/gu;
    and discussion on balance in officially notified prices (standard houses and standard land).

• 3. Examination for selection

  Secure the adequacy of standard house selection

  • A review of the reasonable selection of standard houses is conducted according to the Guidelines for the selection and management of standard houses.
  • A review is conducted of the accuracy of the market price survey.

• 4. Prior check of survey and appraisal reports

  The accuracy and adequacy of drafted standard house prices are reviewed before hearing the opinions of the owners and the heads of the relevant si/gun/gu.

• 5. Hearing opinions on standard house prices

  The opinions of the owners and the heads of si/gun/gu are heard in advance in relation to the expected standard house prices.

• 6. Re-examination of standard house selection and check of survey and appraisal reports

  Securing the accuracy of prices

  • Review of computer errors
  • Examination of the adequacy of the basis for calculating prices

• 7. Official notification of determination
  (Publication in official gazette)

  Official notification of the determined standard house prices is given on January 1 of each year after a review by the Central Commission on the Public Announcement of Real Estate Values.
  (Publication in official gazette)

• Once the expected officially notified prices of standard houses have been determined, the owners are notified thereof; and, if the opinions of the owners are adequate, the expected officially notified prices are adjusted and the rights of the house owners are protected in advance.
• Any person who objects to the standard house prices may submit an objection (either a written objection by mail or submission via the Internet) to the Minister of Land, Infrastructure and Transport within 30 days of the official notification of the standard house prices.

  The Minister of Land, Infrastructure and Transport reviews the contents of any objections and notifies the applicants of the result within 30 days of the elapse of the objection application period.