ENFORCEMENT DECREE OF THE ACT ON APPRAISAL AND CERTIFIED APPRAISERS

Article 1(Purpose) #

The purpose of this Decree is to prescribe matters mandated by the Act on Appraisal and Certified Appraisers and matters necessary for enforcing that Act.

Article 2(Other property) #

"Property prescribed by Presidential Decree" in subparagraph 1 of Article 2 of the Act on Appraisal and Certified Appraisers (hereinafter referred to as the "Act") means the following property: <Amended on Aug. 26, 2020>

1. Copyrights, industrial property rights, fishing rights, aquaculture rights, mining rights, and other rights equivalent to real rights;

2. Factory foundations and mining foundations under Factory and Mining Assets Mortgage Act;

3. Standing timbers under the Standing Timber Act;

4. Property registered or recorded pursuant to relevant statutes and regulations, such as motor vehicles, construction machinery, ships, and aircraft;

5. Securities.

Article 3(Appraisal of land) #

"Appraisal necessary for the preparation of financial statements of an enterprise, such as the preparation of financial statements under the Act on External Audit of Stock Companies, or an appraisal prescribed by Presidential Decree for the establishment of a security interest or an auction" in Article 3 (2) of the Act means appraisal under subparagraphs 3, 4 (excluding appraisals related to compensation among appraisals for litigation pending in the court), and 5 of Article 10 of the Act. <Amended on Oct. 30, 2018>

Article 3-2(Designation of standard-setting institutions) #

(1) The Minister of Land, Infrastructure and Transport shall designate a private corporation or organization that meets all of the following requirements as a standard-setting institution pursuant to Article 3 (4) of the Act:

1. It shall have at least 3 full-time employees qualified for the following:

(a) An appraiser registered pursuant to Article 17 (1) of the Act, with at least 5 years of work experience as an appraiser;

(b) A person with a doctorate degree in a field related to appraisal and at least 3 years of work experience in the relevant field (including work experience obtained before receipt of a doctorate degree);

2. It shall have a dedicated organization and a management system necessary for establishing and amending the standards of appraisal practice under Article 3 (4) of the Act (hereinafter referred to as "Standards of Property Appraisal Practice") and conducting research, etc.;

3. It shall have transparent accounting standards in place;

4. It shall have assets of at least the amount determined and publicly notified by the Minister of Land, Infrastructure and Transport.

(2) A private corporation or organization that seeks to be designated as a standard-setting institution shall submit an application for designation in the form publicly announced by the Minister of Land, Infrastructure and Transport to the Minister of Land, Infrastructure and Transport, along with the following documents:

1. Documents proving that the requirements under the subparagraphs of paragraph (1) are met;

2. Articles of incorporation or bylaws of a private corporation or organization;

3. A project plan.

(3) Where the Minister of Land, Infrastructure and Transport intends to designate a standard-setting institution, he or she shall undergo deliberation by the appraisal management and disciplinary committee under Article 40 of the Act (hereinafter referred to as the "appraisal management and disciplinary committee").

(4) Where the Minister of Land, Infrastructure and Transport designates a standard-setting institution, he or she shall publicly announce such fact in the Official Gazette or on the website of the Ministry of Land, Infrastructure and Transport without delay.

[This Article Newly Inserted on Jan. 21, 2022]

Article 3-3(Duties of standard-setting institutions) #

(1) The duties performed by a standard-setting institution designated pursuant to Article 3-2 (4) (hereinafter referred to as "standard-setting institution") shall be as follows:

1. Establishment and amendment of the Standards of Property Appraisal Practice;

2. Research on the Standards of Property Appraisal Practice;

3. Interpretation of the Standards of Property Appraisal Practice;

4. Reply to inquiries on the Standards of Property Appraisal Practice;

5. Research on improvement of systems related to appraisal;

6. Other duties determined by the Minister of Land, Infrastructure and Transport in relation to the operation of the Standards of Property Appraisal Practice.

(2) A standard-setting institution shall establish a deliberation committee on the Standards of Property Appraisal Practice consisting of up to 9 members, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, in order to deliberate on important matters relating to the establishment, amendment, and interpretation of the Standards of Property Appraisal Practice.

(3) Matters necessary for the composition and operation of a deliberation committee on the Standards of Property Appraisal Practice under paragraph (2) shall be determined by the Minister of Land, Infrastructure and Transport.

[This Article Newly Inserted on Jan. 21, 2022]

Article 4(Scope of other institutions requesting evaluation) #

(1) "Public organizations prescribed by Presidential Decree" in Article 5 (1) of the Act means local public corporations established pursuant to Article 49 of the Local Public Enterprises Act.

(2) "Institutions prescribed by Presidential Decree" in Article 5 (2) of the Act means the following institutions:

1. Credit unions under the Credit Unions Act;

2. Community credit cooperatives under the Community Credit Cooperatives Act.

Article 5(Recommendation of appraisal corporations, etc.) #

(1) Upon receipt of a request for recommendation of an appraisal corporation, etc. pursuant to Article 5 (3) of the Act, the Korea Association of Property Appraisers under Article 33 (1) of the Act (hereinafter referred to as the "Association") shall recommend an appraisal corporation, etc. within 7 days from the date of receipt of such request. <Amended on Jan. 21, 2022; Aug. 20, 2024>

(2) When the Association recommends an appraisal corporation, etc. pursuant to Article 5 (3) of the Act, it shall take into account the following standards: <Amended on Jan. 21, 2022; Aug. 20, 2024>

1. Expertise in an object to be appraised and a track record of service performance;

2.The size of the organization of an appraisal corporation, etc., and the capacity to compensate for damages, taking into account the scale, etc. of an object to be appraised;

3. The number and details of disciplinary actions taken under Article 39 of the Act;

4. A track record of performance in conducting inspection and assessment of officially announced price of representative land under Article 3 of the Act on the Public Announcement of Real Estate Values;

5. Other matters deemed necessary by the Association for recommendation.

[Title Amended on Aug. 20, 2024]

Article 6(Retention of appraisal reports) #

(1) Where an appraisal corporation, etc. is dissolved or permanently closed its business, it shall submit the original copy of an appraisal report and other related documents to the Minister of Land, Infrastructure and Transport for the retention thereof under Article 6 (3) of the Act. If the original copy of the appraisal report and other related documents are stored in any electronic recording medium pursuant to the latter part of Article 6 (3) of the Act, the electronic recording medium may be submitted in lieu of submitting the original copy of the appraisal report and other related documents. <Amended on Jan. 21, 2022>

(2) An appraisal corporation, etc. shall submit the original copy of an appraisal report and related documents under the former part of paragraph (1) (where an electronic recording medium is submitted pursuant to the latter part of that paragraph, referring to the electronic recording medium; hereafter the same shall apply in this Article) within 30 days from the date of dissolution or permanent closure of its business. <Newly Inserted on Jan. 21, 2022>

(3) The Minister of Land, Infrastructure and Transport shall keep the original copies of appraisal reports and related documents submitted pursuant to paragraph (1) for the period classified as follows: <Amended on Jan. 21, 2022>

1. The original copy of an appraisal report: 5 years from the date of issuance;

2. Documents related to an appraisal report: 2 years from the date of issuance.

Article 7(Subjects matters and procedures for examination of appraisal reports) #

(1) An examination of the adequacy of an appraisal report under Article 7 (1) of the Act shall evaluate the compliance with the principles and standards under Article 3 (3) of the Act.

(2) Where an appraiser who examines an appraisal report pursuant to Article 7 (1) of the Act deems it necessary to correct or supplement the prepared appraisal report, he or she shall present his or her opinion on correction or supplementation to the appraiser who has prepared the relevant appraisal report, confirm the correction or supplementation of the relevant appraisal report, indicate the fact of examination on the appraisal report, and affix his or her signature and seal thereto.

Article 7-2(Requester of review of adequacy of appraisal report) #

(1) "Persons prescribed by Presidential Decree, such as appraisal requesters and related agencies" in Article 7 (3) of the Act means the following persons; provided, where any remedy procedure in relation to appraisal is prescribed by relevant statutes or regulations, such as the Act on Acquisition of and Compensation for Land for Public Works Projects, a person for whom such remedy procedure is pending or can be implemented (including a person for whom such remedy procedure is completely implemented) shall be excluded:

1. The appraisal requester;

2. A counterparty to a transaction, contract, etc. using the appraisal report that the appraisal requester is issued;

3. An administrative agency that intends to determine whether to grant authorization, permission, registration, etc. under relevant statutes or regulations or to perform other duties in consideration of the results of appraisal.

(2) "Appraisal corporation, etc. meeting the standards prescribed by Presidential Decree" in Article 7 (3) of the Act means an appraisal corporation, etc. which has at least 2 appraisers (including the representative partner, representative director, representative of an appraisal corporation, etc. who are appraisers) affiliated with it.

[This Article Newly Inserted on Jan. 21, 2022]

Article 7-3(Procedures for review of adequacy of appraisal reports) #

(1) A person who intends to request a review of the adequacy of an appraisal report pursuant to Article 7 (3) of the Act shall request an appraisal corporation, etc. under Article 7-2 (2) to review the appraisal report accompanied by a copy of the appraisal report issued pursuant to Article 6 (1) of the Act (including the appraisal report in electronic form under the Framework Act on Electronic Documents and Transactions).

(2) Upon receipt of a request for review under paragraph (1), an appraisal corporation, etc. shall, without delay, designate an appraiser to perform the review.

(3) An appraiser who performs the review under paragraph (2) shall be a person who has been performing appraisal work for more than 5 years and has completed more than 100 appraisals.

[This Article Newly Inserted on Jan. 21, 2022]

Article 7-4(Notification of results of adequacy review) #

(1) Where an appraisal corporation, etc. that has received a request for review under Article 7-3 (1) completes the review of the adequacy of the appraisal report, the appraisal corporation, etc. shall issue a review result report (including a review result report in electronic form under the Framework Act on Electronic Documents and Transactions; hereafter the same shall apply in this Article) to the person who requested the review of adequacy.

(2) The appraisal corporation, etc. shall state its corporation name or its office name in the review result report under paragraph (1), and the appraiser who has conducted the adequacy review shall indicate his or her qualifications and then affix his or her signature and seal thereon. In such cases, if the entity with which the appraiser is affiliated is an appraisal corporation, the representative member or the representative director shall also affix his or her signature or seal thereon.

[This Article Newly Inserted on Jan. 21, 2022]

Article 8(Procedures for inspection of appropriateness) #

(1) The Minister of Land, Infrastructure and Transport may conduct inspection of appropriateness under Article 8 (1) of the Act in any of the following cases: <Amended on Jan. 21, 2022>

1. Where the Minister of Land, Infrastructure and Transport deems it necessary to conduct an inspection based on the results of access to and inspection of offices of an appraisal corporation, etc. for guidance and supervision under Article 47 of the Act or due to other reasons;

2. Where a relevant agency or an interested person under paragraph (3) requests such inspection.

(2) Where an appraisal subject to inspection of appropriateness under Article 8 (1) of the Act falls under any of the following cases, the Minister of Land, Infrastructure and Transport may choose not to conduct or cease the inspection of appropriateness: <Amended on Jan. 5, 2021>

1. Where it becomes final and conclusive by the judgment of the court;

2. Where a trial is pending or an investigation is being conducted by an investigative agency;

3. Where any remedy procedure in relation to appraisal is prescribed by relevant statutes or regulations, such as the Act on Acquisition of and Compensation for Land for Public Works Projects, and such remedy procedure is pending or can be implemented (including where such remedy procedure is completely implemented);

4. Where there is no practical benefit in conducting the inspection of appropriateness because it is impractical to take disciplinary action, sanctions, criminal punishment, etc.

(3) "Interested persons prescribed by Presidential Decree" in Article 8 (2) of the Act means a person who has requested the relevant appraisal.

(4) Where the Minister of Land, Infrastructure and Transport commences the inspection of appropriateness under Article 8 (1) of the Act, he or she shall notify the relevant appraisal corporation, etc. and the interested persons under paragraph (3) of the following matters within 10 days from the date of commencement: <Amended on Jan. 21, 2022>

1. Grounds for the inspection of appropriateness;

2. The fact that they can submit their opinions on the inspection of appropriateness, and the processing method to be applied where failing to submit opinions;

3. The name and address of an entity entrusted with duties pursuant to Article 46 (1) 1 of the Act;

Article 8-2(Sample surveys on appraisal reports) #

(1) The Minister of Land, Infrastructure and Transport may conduct the following sample surveys pursuant to Article 8 (4) of the Act:

1. Sample survey by random sample extraction method;

2. Sample survey by preferential extraction method.

(2) A sample survey under paragraph (1) 2 shall be conducted for the following fields, as prescribed by the Minister of Land, Infrastructure and Transport:

1. A field in which occurrences of appraisal failures are found, such as failure to comply with the principles and standards for appraisal, based on the results of the inspection of appropriateness conducted under Article 8 (1) within the last 3 years;

2. A field in which many occurrences of violations of the methods, procedures, etc. prescribed by the Act or other statutes are found based on the results of a sample survey conducted under paragraph (1) 1;

3. Other fields deemed necessary by the Minister of Land, Infrastructure and Transport upon receipt of a request from the Association to prevent appraisal failure.

(3) Where the Minister of Land, Infrastructure and Transport deems it necessary to improve the appraisal system based on the results of sample surveys conducted under paragraphs (1) and (2), he or she may request a standard-setting institution to provide an opinion on the improvement of the methods, procedures, etc. for appraisal.

(4) Detailed matters necessary for sample surveys under paragraphs (1) and (2) shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport.

[This Article Newly Inserted on Jan. 21, 2022]

Article 9(Examination subjects and methods) #

(1) The subjects of appraiser examinations under Article 14 of the Act (hereinafter referred to as the "examination") shall be as specified in attached Table 1.

(2) The first-stage examination shall be conducted using multiple-choice questions.

(3) The second-stage examination shall be conducted by an essay-type questionnaire, but a fill-in-the-blank questionnaire may be also permitted concurrently.

(4) With regard to the English subject among the subjects of the first-stage examination under paragraph (1), the English test shall be substituted by the score (limited to the scores announced before the date of the first-stage examination and confirmed by the method prescribed in the public announcement under Article 11) obtained from an examination administered by another examination agency (hereinafter referred to as "English test") after January 1 of the 5th anniversary of the year, counting backward from the closing date of receipt of applications for the first-stage examination. <Amended on Aug. 20, 2024>

(5) Kinds of English tests under paragraph (4) and the passing scores thereof shall be as specified in attached Table 2.

(6) Deleted. <Aug. 20, 2024>

Article 10(Standards for passing examination) #

(1) The passing standards for the subjects of the first-stage examination, except for the English subject, shall be a score of 40 points in each remaining subject graded on a scale of 100 points, with an overall average of at least 60 points.

(2) The Minister of Land, Infrastructure and Transport may determine the minimum number of persons to be selected in a second-stage examination, taking into account the conditions, etc. of supply of and demand for appraisers. <Amended on Jan. 21, 2022>

(3) The passing standards for second-stage examination subjects shall be a score of at least 40 points in each subject graded on a scale of 100 points, with an overall average of at least 60 points; provided, where the number of persons who score at least 40 points in each subject, with an overall average of at least 60 points, is less than the minimum number of persons to be selected under paragraph (2), successful examinees shall be selected in order of the highest average score from among those who score at least 40 points in each subject within such minimum number.

(4) In the case of determining successful examinees pursuant to the proviso of paragraph (3), if the number of successful examinees exceeds the minimum number of persons to be selected due to the same scorers, all same scorers shall be determined as successful examinees. In such cases, the scores of such same scorers shall be calculated only to two decimal places and no rounding shall be performed.

Article 11(Public announcement of examination) #

Where the Minister of Land, Infrastructure and Transport intends to conduct an examination, he or she shall publicly announce the date, time, location, method, and subjects of, and requirements for the examination, the method of confirming the standard scores for passing the English proficiency tests prescribed in attached Table 2, the minimum number of persons to be selected in the second examination, procedures for taking the examination, and other necessary matters on the website, etc. at least 90 days prior to the date of the examination. <Amended on Oct. 23, 2018>

Article 12(Public announcement of successful examinees) #

(1) Where successful examinees are determined, the Minister of Land, Infrastructure and Transport shall publicly announce matters relating to the determination of successful examinees and matters necessary for in-service training, such as the period for filing an application for in-service training and the period for in-service training, in the Official Gazette or on the website of the Ministry of Land, Infrastructure and Transport, in a manner known to all examinees and shall issue a written confirmation of final successful examinee to each successful examinee. <Amended on Aug. 20, 2024>

(2) Where a person falling within Article 11 of the Act applies for the issuance of the certificate of license, the Minister of Land, Infrastructure and Transport shall issue the certificate of license, except where he or she falls within any of the grounds for disqualification under Article 12 of the Act.

Article 13(Examination fees) #

(1) "Fee prescribed by Presidential Decree" in the former part of Article 14 (5) of the Act means the amount classified as follows: <Newly Inserted on Jan. 21, 2022>

1. First-stage examination: 40,000 won;

2. Second-stage examination: 40,000 won.

(2) Fees under paragraph (1) (hereinafter referred to as "application fees") may be paid in cash or by means of electronic currency, electronic payment, etc. using information and communications networks. <Amended on Jan. 21, 2022>

(3) Where a person who has paid an examination fee falls under any of the following cases, the Minister of Land, Infrastructure and Transport shall fully or partially refund the examination fee, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: <Amended on Jan. 21, 2022; Sep. 26, 2024>

1. Where the application fee is overpaid or erroneously paid;

2. Where he or she fails to take an examination due to reasons attributable to the Minister of Land, Infrastructure and Transport;

3. Where he or she has withdrawn his or her application for examination no later than 10 days before the date of examination;

4. Where he or she fails to take an examination because he or she is hospitalized due to an accident or disease (limited to where the date of examination falls within the period of hospitalization);

5. Where he or she fails to apply for an examination due to a disposition for medical treatment, hospitalization, quarantine or isolation under the Act on the Prevention and Management of Infectious Diseases (limited to where the date of examination falls within the period of medical treatment, hospitalization, quarantine or isolation);

6. Where he or she fails to take an examination because he or she dies or any of the following persons dies during the period from 7 days before the date of examination to the date of examination:

(a) The spouse of the person who has paid the application fee;

(b) Children of the person who has paid the application fee and his or her spouse;

(c) Parents of the person who has paid the application fee and his or her spouse;

(d) Grandparents of the person who has paid the application fee and his or her spouse;

Article 14(Exemption from first-stage examination) #

(1) "Institution prescribed by Presidential Decree, such as appraisal corporation" in Article 15 (1) of the Act means each of the following: <Amended on Dec. 8, 2020>

1. Appraisal corporation;

2. Appraisal office;

3. The Association;

4. The Korea Real Estate Board under the Korea Real Estate Board Act (hereinafter referred to as the "Korea Real Estate Board");

5. An agency that guides or supervises appraisal affairs;

6. An agency that performs the duties of determining and publicly announcing the officially assessed individual land price, individual housing price, multi-family housing price, or non-residential real estate value, or guides and supervises such duties, pursuant to the Act on the Public Announcement of Real Estate Values;

7. An agency that performs the duties of preparing a standard comparison table of land prices, a standard comparison table of housing prices, and a standard comparison table of non-residential real estate values pursuant to the Act on the Public Announcement of Real Estate Values;

8. An agency that manages State property;

9. An agency that performs the affairs of inspecting and determining the standard taxable market price or guides and supervises such affairs.

(2) When calculating a period of being engaging in duties under Article 15 (1) of the Act, the base date shall be March 1 of the year in which the date of second-stage examination falls, and a period of being engaged in the duties in at least 2 institutions shall be aggregated for a person who engaged in the relevant duties in at least 2 institutions. <Amended on Jan. 21, 2022>

Article 15(Period of on-the-job training for appraisers) #

The period of on-the-job training under Article 17 (1) of the Act shall be classified as follows:

1. Persons who have passed an appraiser examination under Article 14 of the Act and do not fall within subparagraph 2: 1 year;

2. Persons who were exempted from the first-stage examination pursuant to Article 15 (1) of the Act and have passed an appraiser examination under Article 14 of the Act: 4 weeks.

[This Article Wholly Amended on Jan. 21, 2022]

Article 16(Matters for on-the-job training of Appraisers) #

(1) A person who receives on-the-job training pursuant to Article 17 (1) of the Act (hereinafter referred to as "on-the-job training") shall acquire the theory and practice on appraisal, professional ethics, and other matters necessary for the performance of duties of appraisers during the on-the-job training period. <Amended on Jan. 21, 2022>

(2) The Minister of Land, Infrastructure and Transport may give instructions necessary for on-the-job training to the Association.

(3) The Association shall formulate a plan for on-the-job training and obtain approval from the Minister of Land, Infrastructure and Transport, and upon the completion of on-the-job training, report the results thereof to the Minister of Land, Infrastructure and Transport within 10 days from the completion date of the on-the-job training.

(4) The details, methods, and procedures for on-the-job training and other necessary matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.

[Title Amended on Jan. 21, 2022]

Article 16-2(Education and training for appraisers) #

(1) Persons subject to education and training under Article 17 (1) of the Act shall be appraisers subject to disciplinary action under Article 39 (2) 2 and 3 of the Act.

(2) Hours of education and training under paragraph (1) shall be at least 25 hours.

(3) Article 16 (1) through (3) shall apply mutatis mutandis to matters relating to education and training of appraisers. In such cases, "on-the-job training" shall be construed as "education and training".

(4) Except as otherwise provided in paragraphs (1) through (3), the details, methods, and procedures for education and training and other necessary matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.

[This Article Newly Inserted on Jan. 21, 2022]

Article 17(Registration) #

(1) A person who intends to file for registration pursuant to Article 17 (1) of the Act shall submit an application for registration (including an application in electronic form) to the Minister of Land, Infrastructure and Transport, along with documents proving his or her qualification as an appraiser and documents proving the completion of on-the-job training and education and training. <Amended on Jan. 21, 2022>

(2) Upon receipt of an application for registration under paragraph (1), the Minister of Land, Infrastructure and Transport shall register the applicant in the register of appraisers and issue a certificate of registration to the applicant, except where the applicant falls within any subparagraph of Article 18 (1) of the Act.

Article 18(Renewal of registration) #

(1) An appraiser registered pursuant to Article 17 (1) of the Act shall renew his or her registration every 5 years pursuant to paragraph (2) of that Article.

(2) An appraiser who intends to renew his or her registration pursuant to paragraph (1) shall submit an application for renewal of registration to the Minister of Land, Infrastructure and Transport at least 60 days prior to the 5th anniversary of the date of registration.

(3) The Minister of Land, Infrastructure and Transport shall notify a person who has registered as an appraiser of the fact that he or she shall file an application for renewal of registration if he or she intends to renew his or her registration as an appraiser and of the procedures for filing an application for renewal of registration by no later than 120 days before the 5th anniversary of the date of registration.

(4) The notification under paragraph (3) may be made by means of documents, facsimile, e-mails, text messages by mobile phone, etc.

(5) Upon receipt of an application for registration under paragraph (2), the Minister of Land, Infrastructure and Transport shall register the applicant in the register of appraisers and issue a certificate of registration to the applicant, except where the applicant falls within any subparagraph of Article 18 (1) of the Act.

Article 19(Authorization of foreign appraisers) #

(1) The home country referred to in Article 20 (1) of the Act shall be the country in which the foreign appraiser has obtained the qualification.

(2) Where a foreign appraiser intends to obtain authorization pursuant to Article 20 (1) of the Act, he or she shall submit an application for authorization to the Minister of Land, Infrastructure and Transport, along with a document certifying that his or her home country, in which he or she obtained the qualification, recognizes appraiser’s licenses granted by the government of the Republic of Korea. In such cases, it shall be submitted through the Association.

(3) Where the Minister of Land, Infrastructure and Transport grants authorization for the duties of a foreign appraiser pursuant to Article 20 (1) of the Act, the duties that may be restricted pursuant to paragraph (2) of that Article shall be the duties prescribed in subparagraphs 1 through 5 and 8 of Article 10 of the Act.

Article 20 #

Deleted. <Jan. 21, 2022>

Article 21(Establishment of joint office) #

(1) Appraisers who have established a joint office of appraisers pursuant to Article 21 (3) of the Act shall submit the rules of the joint office of appraisers to the Minister of Land, Infrastructure and Transport. <Amended on Jan. 21, 2022>

(2) "Number prescribed by Presidential Decree" in the latter part of Article 21 (3) of the Act means 2 persons. <Amended on Jan. 21, 2022>

(3) Matters to be prescribed in the rules under paragraph (1) and other matters necessary for the management, etc. of joint offices of appraisers shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.

[Title Amended on Jan. 21, 2022]

Article 22(Public announcement of fees) #

Where the Minister of Land, Infrastructure and Transport determines or changes the rate and scope of actual costs of fees for performing duties of an appraisal corporation, etc. pursuant to Article 23 (2) of the Act, the Minister shall publicly announce such fact in daily newspapers, in the Official Gazette, on its website, or by other effective means. <Amended on Nov. 24, 2020; Jan. 21, 2022>

Article 23(Purchase of insurance for damages) #

(1) Appraisal corporations, etc. shall purchase guarantee insurance or participate in a mutual-aid program operated by the Association pursuant to Article 33 (4) of the Act in order to guarantee liability for damages under Article 28 (1) of the Act . <Amended on Jan. 21, 2022>

(2) Where an appraisal corporation, etc. has purchased guarantee insurance under paragraph (1), it shall notify the Minister of Land, Infrastructure and Transport thereof, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Jan. 21, 2022>

(3) Where an appraisal corporation, etc. purchases guarantee insurance pursuant to paragraph (1), the amount of such insurance coverage shall be at least 100 million won per appraiser. <Amended on Jan. 21, 2022>

(4) When damages are compensated with guarantee insurance money under paragraph (1), the appraisal corporation, etc. shall reconclude an insurance contract within 10 days. <Amended on Jan. 21, 2022>

Article 24(Composition of appraisal corporations) #

(1) "Ratio prescribed by Presidential Decree" in the former part of Article 29 (2) of the Act means 90/100. <Newly Inserted on Jan. 21, 2022>

(2) "Persons who meet the qualifications prescribed by Presidential Decree, such as expertise in land, etc." in the latter part of Article 29 (2) of the Act means any of the following persons: <Newly Inserted on Jan. 21, 2022>

1. A person who is qualified as an attorney-at-law, certified judicial scrivener, certified public accountant, certified tax accountant, professional engineer, certified architect, or patent attorney;

2. A person who has obtained a master's degree in law, accounting, tax accounting, architecture, or any other field prescribed and publicly notified by the Minister of Land, Infrastructure and Transport and has worked for at least 3 years in the relevant field (including work experience before obtaining a master's degree);

3. A person who has obtained a doctorate degree in any of the fields referred to in subparagraph 2;

4. Other persons who have extensive knowledge and practical experience in the field of land, etc. and who have qualifications or work experience determined and publicly notified by the Minister of Land, Infrastructure and Transport.

(3) "Number prescribed by Presidential Decree" in the former part of Article 29 (4) of the Act means 5 persons. <Amended on Jan. 21, 2022>

(4) The minimum number of appraisers stationed in the main office and branch office of an appraisal corporation under Article 29 (4) of the Act shall be as follows: <Amended on Jan. 21, 2022>

1. Main office: 2 persons;

2. Branch office: 2 persons.

Article 25(Authorization of establishment of appraisal corporation) #

(1) A person who intends to obtain authorization to establish an appraisal corporation pursuant to the main clause, with the exception of the subparagraphs, of Article 29 (5) of the Act shall submit to the Minister of Land, Infrastructure and Transport an application for authorization, which is signed and sealed by a person who are to become a member or all promoters who are appraisers, accompanied by the following documents: <Amended on Jan. 21, 2022>

1. Articles of incorporation;

2. Copies of certificates of registration under Article 17 (2) or 18 (5) of members and affiliated appraisers (in the case of a foreign appraiser authorized under Article 20 of the Act, referring to a copy of the written authorization);

3. Documents proving that a member or director who is not an appraiser falls within any subparagraph of Article 24 (2);

4. Documents proving ownership of relevant offices;

5. Other documents prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.

(2) When the Minister of Land, Infrastructure and Transport grants authorization for the establishment of an appraisal corporation under the main clause, with the exception of the subparagraphs, of Article 29 (5) of the Act, the Minister shall examine and verify the following matters: <Amended on Jan. 21, 2022>

1. Whether an appraisal corporation to be established meets the requirements prescribed in Article 29 (2) through (4) of the Act;

2. Whether the contents of the articles of incorporation conform to statutes and regulations.

Article 26(Notification of registration of appraisal corporation) #

A person who has obtained authorization for establishment of an appraisal corporation pursuant to Article 29 of the Act shall notify the Minister of Land, Infrastructure and Transport of the fact of registration within 1 month from the date of establishment. In such cases, the Minister of Land, Infrastructure and Transport shall verify the relevant corporation registration certificate through administrative data matching under Article 36 (1) of the Electronic Government Act.

Article 27(Application for authorization of merger) #

A person who intends to obtain authorization for the change of the articles of incorporation or the merger pursuant to the main clause, with the exception of the subparagraphs, of Article 29 (5) of the Act or paragraph (8) of that Article shall submit to the Minister of Land, Infrastructure and Transport an application for authorization signed and sealed by all members or directors, along with the following documents: <Amended on Jan. 21, 2022>

1. Written statement of reasons;

2. A copy of the minutes of the general meeting of members or the general meeting of shareholders regarding the amendment of the articles of incorporation or the merger;

3. New and old articles of incorporation.

Article 28(Reporting on amendment of articles of incorporation) #

"Change of minor matters prescribed by Presidential Decree" in the proviso, with the exception of the subparagraphs, of Article 29 (5) means change to matters referred to in Article 29 (5) 3 through 5 of the Act: <Amended on Jan. 21, 2022>

Article 29(Criteria for revocation of authorization) #

The criteria for revocation of authorization for establishment of an appraisal corporation, etc. and suspension of business operations under Article 32 (1) of the Act shall be as specified in attached Table 3. <Amended on Aug. 20, 2024>

Article 30(Authorization for establishment of Korea Association of Property Appraisers) #

(1) In order to establish the Association pursuant to Article 33 (3) of the Act, at least 30 appraisers who have established an office pursuant to Article 21 (1) of the Act or who belong to an appraisal corporation, etc. shall convene its inaugural general meeting as promoters and prepare bylaws with the consent of a majority of at least 300 appraisers who have established an office pursuant to Article 21 (1) of the Act or who belong to an appraisal corporation, etc. attending the inaugural general meeting and submit an application for authorization to the Minister of Land, Infrastructure and Transport. <Amended on Jan. 21, 2022; Aug. 20, 2024>

(2) The application for authorization under paragraph (1) shall include the following:

1. Name;

2. Purpose;

3. Location of the office;

4. Matters regarding executive officers and the board of directors;

5. Matters regarding the establishment of the secretariat;

6. Matters regarding the admission or withdrawal of members;

7. Matters regarding the rights and obligations of members;

8. Matters regarding the education and training of members and the development of evaluation techniques;

9. Matters regarding settlement of disputes arising among members in the course of performing their duties;

10. Matters regarding the operation of mutual-aid programs;

11. Matters regarding meetings;

12. Matters regarding membership fees;

13. Matters regarding accounting and property.

Article 31(Mutual aid programs) #

(1) Where an appraisal corporation, etc. participates in a mutual aid program of the Association under Article 33 (4) of the Act, it shall contribute at least 1/100 of the fees it has received in the mutual aid program as prescribed by the bylaws of the Association. <Amended on Jan. 21, 2022>

(2) Notwithstanding paragraph (1), the Association may determine the ratio of contributions to less than 1/100 of the fees in accordance with the bylaws of the Association, taking into consideration the rate of mutual aid accidents, the mutual aid program, payment of mutual aid money, etc.

Article 32(Affiliated organization) #

The Association may establish an affiliated organization to promote various research projects on the real estate disclosure system and appraisal, as prescribed by its articles of incorporation.

Article 33(Management of records on careers of members of the Association) #

(1) The Association may maintain records on careers and specialized fields of appraisers who have joined as members pursuant to Article 35 of the Act. <Amended on Jan. 21, 2022>

(2) The Minister of Land, Infrastructure and Transport may provide his or her opinion to the Association on the criteria for classification or management of records on careers and specialized fields under paragraph (1) or the standards for management thereof. <Amended on Jan. 21, 2022>

[Title Amended on Jan. 21, 2022]

Article 34(Request for resolution on disciplinary action) #

(1) Where the Minister of Land, Infrastructure and Transport deems that an appraiser has any ground for disciplinary action under any of the subparagraphs of Article 39 (1) of the Act, the Minister shall request the appraisal management and disciplinary committee to adopt a resolution on disciplinary action, along with evidentiary documents. <Amended on Jan. 21, 2022>

(2) Upon receipt of a request for a resolution on disciplinary action under paragraph (1), the appraisal management and disciplinary committee shall, without delay, notify the relevant appraiser (hereinafter referred to as "party") of the details of the request for disciplinary action and the date for deliberation on disciplinary action. <Amended on Jan. 21, 2022>

Article 35(Deadline for resolution on disciplinary action) #

The appraisal management and disciplinary committee shall adopt a resolution on disciplinary action within 60 days from the date of receipt of a request for a resolution on disciplinary action; provided, if there are unavoidable reasons, the period may be extended only once up to 30 days by resolution of the appraisal management and disciplinary committee. <Amended on Jan. 21, 2022>

Article 36(Notification of disciplinary action) #

(1) Where the Minister of Land, Infrastructure and Transport notifies the detailed grounds for disciplinary action pursuant to Article 39-2 (1) of the Act, he or she shall clearly state the type of disciplinary action and the grounds therefor in writing.

(2) Pursuant to Article 39-2 (1) of the Act, the Minister of Land, Infrastructure and Transport shall publicly announce the following matters in the Official Gazette within 14 days from the date of notification of the grounds for disciplinary action under that paragraph:

1. The name and date of birth of the appraiser subject to disciplinary action, and the name and address of the office of the appraisal corporation, etc. with which he or she is affiliated;

2. Type of disciplinary action;

3. Grounds for disciplinary action (including an outline of facts related to grounds for disciplinary action);

4. The effective date of disciplinary action (where the type of disciplinary action is suspension of business operations, the start date and the end date of the suspension of business operations).

(3) The Minister of Land, Infrastructure and Transport shall also post the matters referred to in the subparagraphs of paragraph (2) on the appraisal information system under Article 9 of the Act.

(4) The period for posting the details of disciplinary action under paragraph (3) and Article 39-2 (2) of the Act shall be from the date of public announcement under paragraph (2) to the period classified as follows:

1. In cases of revocation of qualification or registration under Article 39 (2) 1 and 2 of the Act: 3 years;

2. In cases of suspension of business operations under Article 39 (2) 3 of the Act: The period of suspension of business operations (3 months, if the period of suspension of business operations is less than 3 months);

3. In cases of reprimand under Article 39 (2) 4 of the Act: 3 months.

[This Article Wholly Amended on Jan. 21, 2022]

Article 36-2(Application for perusal of information on disciplinary action) #

(1) A person who intends to apply for perusal of information on disciplinary action under Article 39-2 (3) of the Act shall file with the Association an application stating the purport of the application, along with the following documents:

1. Documents verifying the identity of the applicant, such as a copy of his or her resident registration certificate or the corporation registration certificate;

2. Documents stating the intention to request an appraiser to conduct an appraisal (including requesting it to an appraisal corporation or an appraisal office with which the appraiser is affiliated) and the grounds for requiring information on disciplinary action;

3. If an agent applies, documents proving the agency relationship, such as a power of attorney.

(2) An application for perusal under paragraph (1) may be filed by the claimant directly submitting the application and attached documents to the Association, or by postal mail, facsimile, or by using an information and communications network, such as electronic mail.

[This Article Newly Inserted on Jan. 21, 2022]

Article 36-3(Methods of providing information on disciplinary action) #

(1) Upon receipt of an application under Article 36-2 (1), the Association shall allow the applicant to peruse information on disciplinary action within 10 days.

(2) Where the Association has allowed information on disciplinary action to be perused pursuant to paragraph (1), it shall notify the relevant appraiser of such fact without delay.

(3) The information to be provided under Article 39-2 (3) of the Act shall be the matters publicly announced in the Official Gazette pursuant to Article 36 (2) until the period, counting backward from the date of application, in the following classifications:

1. In cases of revocation of qualification or registration under Article 39 (2) 1 and 2 of the Act: 10 years;

2. In cases of suspension of business operations under Article 39 (2) 3 of the Act: 5 years;

3. In cases of reprimand under Article 39 (2) 4 of the Act: 1 year.

(4) The Association may require a person who has applied for perusal pursuant to Article 36-2 (1) to bear expenses incurred in perusal.

(5) Except as provided in paragraphs (1) through (4), matters necessary for perusal of information on disciplinary action shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport.

[This Article Newly Inserted on Jan. 21, 2022]

Article 37(Composition of Appraisal Management and Disciplinary Committee) #

(1) The committee shall be comprised of 13 members, including 1 chairperson and 1 vice-chairperson, and shall take gender equality into account.

(2) The chairperson of the committee shall be commissioned or designated by the Minister of Land, Infrastructure and Transport from among the members referred to in paragraph (3) 2 or 3 and its vice-chairperson, from those referred to in paragraph (3) 1.

(3) The Members of the Committee shall be as follows: <Amended on Dec. 8, 2020>

1. Three persons designated by the Minister of Land, Infrastructure and Transport from among Grade IV or higher-ranking public officials of the Ministry of Land, Infrastructure and Transport;

2. Two persons commissioned by the Minister of Land, Infrastructure and Transport from among attorneys-at-law;

3. Four persons commissioned by the Minister of Land, Infrastructure and Transport from among those who are currently holding or have once held assistant professorships or higher positions teaching theories on land, housing, etc. at colleges or universities under the Higher Education Act;

4. One person commissioned by the Minister of Land, Infrastructure and Transport upon recommendation of the president of the Association from among its standing executive officers;

5. One person commissioned by the Minister of Land, Infrastructure and Transport upon recommendation of the president of the Korea Real Estate Board from among its standing directors;

6. Two persons commissioned by the Minister of Land, Infrastructure and Transport from among appraisers for whom at least 10 years have passed since they acquired their qualifications.

(4) The term of office of members referred to in paragraph (3) 2 through 6 shall be 2 years, and they may be appointed for only 1 further term.

Article 38(Exclusion of, challenge to, or recusal by member) #

(1) If a member of the appraisal management and disciplinary committee (hereafter referred to as "member" in this Article) falls within any of the following subparagraphs, he or she shall be excluded from deliberation and resolution by the committee: <Amended on Jan. 21, 2022>

1. Where a member or his or her current or former spouse becomes a party to the relevant agenda item or the joint holder of any right or joint obligor of any duty with that party in regards to the agenda item;

2. Where a member is or was a relative of a party to the relevant agenda item;

3. Where a member has provided testimony, made a statement, provided consultation, conducted research, provided service, or provided appraisal on the relevant agenda item;

4. Where a member or a corporation, organization, etc. to which he or she belongs is the current or former agent of a party to the relevant agenda item;

5. Where a member who is affiliated with the same appraisal corporation or appraisal office as a party to the relevant agenda item.

(2) Where there are circumstances indicating that it would be impractical to expect fair deliberations and resolutions by a member, a party to the relevant agenda item may file a challenge to the member with the appraisal management and disciplinary action committee, and the appraisal management and disciplinary action committee shall determine by resolution whether to accept the challenge. In such cases, the member against whom the challenge is filed shall not participate in the resolution. <Amended on Jan. 21, 2022>

(3) Where a member falls within the grounds for exclusion under the subparagraphs of paragraph (1), he or she shall recuse himself or herself from deliberation and decision-making on the relevant agenda item.

Article 39(Withdrawal of designation and dismissal of member) #

Where a member referred to in the subparagraphs of Article 37 falls within any of the following subparagraphs, the Minister of Land, Infrastructure and Transport may withdraw the designation of the member or dismiss the member:

1. Where a member becomes unable to perform his or her duties due to mental or physical disability;

2. Where a member commits misconduct in connection with his or her duties;

3. Where a member is deemed unfit to serve as a member due to neglect of duty, injury to dignity, or any other reason;

4. Where a member fails to recuse himself or herself despite falling within any of the subparagraphs of Article 38 (1);

5. Where a member makes it clear that it is difficult for him or her to perform his or her duties.

Article 40(Duties of chairperson) #

(1) The chairperson of the appraisal management and disciplinary committee (hereafter referred to as the "chairperson" in this Article) shall represent the committee and exercise general supervision its affairs. <Amended on Jan. 21, 2022>

(2) The chairperson shall convene and preside over meetings of the appraisal management and disciplinary action Committee. <Amended on Jan. 21, 2022>

(3) Where the chairperson is unable to perform his or her duties due to unavoidable reasons, the vice-chairperson shall act on behalf of the chairperson, and where both the chairperson and the vice-chairperson are unable to perform their duties due to unavoidable reasons, a member designated by the chairperson shall act on behalf of the chairperson; provided, if the chairperson is unable to designate a member to act on behalf of the chairperson due to unavoidable reasons, a member designated by the Minister of Land, Infrastructure and Transport shall act on behalf of the chairperson.

Article 40-2(Subcommittee) #

(1) A subcommittee may be established under the appraisal management and disciplinary action committee to examine the details of a request for a resolution on disciplinary action under Article 34 (1). <Amended on Jan. 21, 2022>

(2) Matters necessary for the establishment and operation of a subcommittee shall be determined by the chairperson of the committee following resolution by the appraisal management and disciplinary action committee. <Amended on Jan. 21, 2022>

[This Article Newly Inserted on Feb. 18, 2020]

Article 41(Attendance of parties) #

Any of the parties may appear before the appraisal management and disciplinary committee and state facts favorable to him or her orally or in writing, or submit necessary evidence. <Amended on Jan. 21, 2022>

Article 42(Resolution by Appraisal Management and Disciplinary Committee) #

A majority of the members of the appraisal management and disciplinary committee shall constitute a quorum, and any resolution thereof shall require the concurring vote of a majority of those present. <Amended on Jan. 21, 2022>

[Title Amended on Jan. 21, 2022]

Article 43(Criteria for imposing penalty surcharges) #

(1) The criteria for imposing penalty surcharges under Article 41 of the Act shall be as follows:

1. Where the period of suspension of business operations due to a violation is one year or more according to the individual criteria under subparagraph 2 of attached Table 3: An amount equivalent to 70/100 or more of the maximum amount of the penalty surcharge under Article 41 (1) of the Act (hereafter referred to as the "maximum amount of the penalty surcharge" in this Article) shall be imposed as a penalty surcharge;

2. Where the period of suspension of business operations due to a violation is 6 months or more but less than 1 year according to the individual criteria under subparagraph 2 of attached Table 3: An amount equivalent to 50/100 or more but less than 70/100 of the maximum amount of the penalty surcharge shall be imposed as a penalty surcharge;

3. Where the period of suspension of business operations due to a violation is less than 6 months according to the individual criteria under subparagraph 2 of attached Table 3: An amount equivalent to 20/100 or more but less than 50/100 of the maximum amount of the penalty surcharge shall be imposed as a penalty surcharge.

(2) The amount of a penalty surcharge calculated pursuant to paragraph (1) may be increased or decreased by up to 1/2 of the amount in consideration of the matters referred to in the subparagraphs of Article 41 (2) of the Act; provided, the total amount of the penalty surcharge shall not exceed the maximum amount of the penalty surcharge.

(3) Where the Minister of Land, Infrastructure and Transport imposes a penalty surcharge pursuant to Article 41 of the Act, he or she shall give written notice, specifying the type of violation and the amount of the penalty surcharge.

(4) A person in receipt of notification under paragraph (3) shall pay the penalty surcharge to a receiving agency designated by the Minister of Land, Infrastructure and Transport within 60 days from the date of receipt of such notification.

Article 44(Extension of payment deadline) #

(1) The extension of the payment deadline under Article 43 (1) of the Act shall not exceed 1 year from the day following the payment deadline.

(2) Where payment in installments is allowed pursuant to Article 43 (1) of the Act, the interval between deadlines for payment in installments shall not exceed 6 months, and the number of installments shall not exceed 3 times.

Article 45(Additional charges) #

"Additional charge prescribed by Presidential Decree" in Article 44 (1) of the Act means an amount calculated by multiplying the amount of the penalty surcharge in arrears by 6/100 per annum. The period for collecting additional charges in such cases shall not exceed 60 months.

Article 46(Urging) #

(1) Urging under Article 44 (2) of the Act shall be made in writing within 15 days after the deadline for payment.

(2) Where a demand notice is issued pursuant to paragraph (1), the deadline for payment of the penalty surcharge in arrears shall be within 10 days from the date of issuance of the demand notice.

Article 47(Entrustment of duties) #

(1) Pursuant to Article 46 (1) of the Act, the Minister of Land, Infrastructure and Transport shall entrust the Korea Real Estate Board with the following duties: <Amended on Dec. 8, 2020; Jan. 21, 2022>

1. Collection of basic data, and analysis of the details of appraisal, for the inspection of appropriateness under Article 8 (1);

2. Sample surveys on appraisal reports under Article 8-2;

3. Establishment and operation of an appraisal information system under Article 9 of the Act.

(2) Pursuant to Article 46 (1) of the Act the Minister of Land, Infrastructure and Transport shall entrust the Association with the following duties: <Amended on Feb. 18, 2020>

1. Receipt and keeping of original copies of appraisal reports and related documents under Article 6 (3) of the Act and Article 6 of this Decree;

2. Receipt of applications for registration of appraisers and applications for renewal of registration under Article 17 of the Act, and prior notification of renewal of registration under Article 18 of this Decree.

3. Deleted; <Jan. 21, 2022>

3-2. Receipt of reports on the employment of an affiliated appraiser or a clerical worker under Article 21-2 of the Act and the termination of such employment relationship;

4. Receipt of notification of purchase of guarantee insurance under Article 23 (2).

(3) Pursuant to Article 46 (1) of the Act, the Minister of Land, Infrastructure and Transport shall entrust the management of appraiser examinations under Article 14 of the Act to the Human Resources Development Service of Korea established under the Human Resources Development Service of Korea Act.

Article 48(Management of sensitive information and personally identifiable information) #

The Minister of Land, Infrastructure and Transport (including persons entrusted with the duties of the Minister of Land, Infrastructure and Transport pursuant to Article 46 of the Act) may manage information corresponding to criminal history records under subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act or data containing resident registration numbers or alien registration numbers under subparagraph 1 or 4 of Article 19 of that Enforcement Decree, if essential for performing the following affairs: <Amended on Feb. 18, 2020; Jan. 21, 2022>

1. Revocation of qualification of an appraiser under Article 13 of the Act;

2. Appraiser examinations under Article 14 of the Act;

3. On-the-job training, education and training, registration, and renewal of registration of appraisers under Article 17 of the Act;

3-2. Refusal of registration and renewal of registration under Article 18 of the Act;

4. Revocation of registration of appraisers under Article 19 of the Act;

5. Authorization for foreign appraisers under Article 20 of the Act;

5-2. Reporting on the employment of affiliated appraiser or a clerical worker under Article 21-2 of the Act and the termination of such employment relationship;

6. Establishment of an appraisal corporation, authorization of the articles of association, merger, and dissolution of an appraisal corporation under Articles 29 and 30 of the Act;

7. Authorization for the establishment of the Association under Article 33 of the Act;

8. Education and training for appraisers under Article 38 of the Act;

9. Disciplinary actions under Article 39 of the Act;

9-2. Public announcement of grounds for disciplinary action under Article 39-2 (1) of the Act;

9-3. Provision of information on disciplinary action under Article 39-2 (3) of the Act;

10. Issuance of certificates of license for appraisers under Article 12 (2).

Article 49 #

Deleted. <Jan. 21, 2022>

Article 50(Imposition and collection of administrative fines) #

The criteria for imposing administrative fines under Article 52 (1) of the Act shall be as specified in attached Table 4.

Article 51(Re-examination of regulation) #

The Minister of Land, Infrastructure and Transport shall examine the appropriateness of the minimum number of appraisers to be assigned to the office of an appraisal corporation under Article 24 every 3 years, counting from January 1, 2017 (referring to the period that ends on the day before January 1 of every 3rd year) and shall take measures, such as making improvements.