Enhancing Trust in Public Real Estate Prices: Korea Real Estate Board and Appraisers Association to Advance 'Automated Valuation'

Collaboration to Advance the Automated Valuation Model (AVM) for Real Estate Pricing

The Korea Real Estate Board and the Korea Association of Property Appraisers have joined forces to enhance the appropriateness and reliability of publicly announced real estate prices.

The two organizations announced on November 20 that they recently signed a "Business Agreement for the Advancement of the Automated Valuation Model (AVM)" at the Seoul Office of the Korea Real Estate Board in Gangnam-gu, Seoul.

Son Taerak, President of Korea Real Estate Board (right), and Yang Gilsu, President of the Korea Association of Property Appraisers, are holding the agreement document and posing for a commemorative photo at the Memorandum of Understanding (MOU) event for the "Advancement of the Automatic Real Estate Price Estimation Model" to improve the appropriateness of publicly announced prices, held on the 19th at the Seoul Office of the Korea Real Estate Board in Gangnam-gu, Seoul. Korea Real Estate Board

The core of this agreement is to advance the AVM by combining data and expertise from both the public and private sectors. The AVM is a model that automatically estimates real estate values based on statistical and mathematical models using large-scale real estate data. It identifies price patterns from vast datasets and calculates the appropriate price for individual properties.

Publicly announced prices are not only used as the basis for taxation, such as property tax and comprehensive real estate tax, but also serve as standards for more than 60 types of national welfare and administrative programs, including health insurance premiums and basic pensions.

Through this agreement, the two organizations plan to cooperate on mutual data exchange for AVM utilization and strategies for applying it to public disclosure work, with a gradual expansion of information sharing.

The Korea Real Estate Board expects that this agreement will help improve the appropriateness of publicly announced prices and enhance public trust through the advancement of the AVM.

Son Taerak, President of the Korea Real Estate Board, stated, "We expect that the appropriateness of publicly announced prices will be further improved through the advancement of the AVM," adding, "We will continue to share our expertise and experience to ensure that the public can trust the process of determining publicly announced prices."