Gyeonggi Province to Develop AI-Based Solution for Building a Real Estate Transaction Safety Net

Gyeonggi Province is pushing ahead with the development of an "AI-based transaction safety net solution" by investing 1.4 billion won. Once a home address is entered on the website, artificial intelligence (AI) will analyze the entire process of a jeonse (long-term lump-sum deposit lease) real estate contract to identify and flag potential risks.

Gyeonggi Province announced on February 25 that it held a kick-off briefing session for the "AI-based transaction safety net solution development" at the Suwon Convention Center on February 24, and that it plans to complete development by June and begin pilot operations in the second half of this year.

Previously, Gyeonggi Province was selected last November for a public contest project by the Ministry of Science and ICT on the theme of an AI-based transaction safety net solution, thereby securing national funding.

This solution focuses on building a prevention-oriented system that uses AI to detect and warn of risk factors throughout the entire real estate transaction process in advance. It will provide a detailed diagnosis of legal rights relationships by integrating and analyzing various data such as registry records, building ledgers, actual transaction prices, collateralized mortgages, and trust information.

By comprehensively analyzing key information that can significantly affect transactions, such as the landlord's debt status and history of guarantee accidents, the system will help licensed real estate agents identify in advance risk factors that were previously difficult to verify. Through this, it will make licensed agents' verification and explanation work more systematic, while providing residents of the province with enhanced information on transaction safety.

Gyeonggi Province officials pose for a commemorative photo after holding a meeting on the 24th to develop a solution for establishing an AI-based real estate transaction safety net. Photo by Gyeonggi Province

Gyeonggi Province expects that once this system is established, it will be able to systematically manage risk factors at each stage of the contract, enabling a shift from the current damage relief approach, which focuses on post-incident response, to a proactive prevention system. The system will be linked with the "Gyeonggi Safe Jeonse Project" and will also provide integrated safety management functions for the pre-, mid-, and post-contract stages.

Son Imsung, Director General for Urban and Housing Affairs of Gyeonggi Province, said, "An AI-based transaction safety net is not just about building a simple system, but a core foundation for shifting the real estate transaction paradigm toward prevention," adding, "Once this system is completed, we expect it will enhance the efficiency of licensed real estate agents' rights analysis work and shorten the time required for practical tasks, while reducing the likelihood of actual damages through its advance warning function for high-risk transactions."

Meanwhile, following the kick-off briefing session on the same day, Gyeonggi Province held a governance (consultative body) meeting for the development of the AI-based transaction safety net solution, with the participation of about 30 officials from related institutions.

At the governance meeting, participants discussed topics such as expanding data linkage, improving relevant laws and systems, enhancing on-site usability, and phased operation plans. They agreed on the need to strengthen collaboration with the central government and to improve the organic linkage of public and private data in order to increase the effectiveness of the system.