MOU aims to improve real estate tax assessment regime and appraisal techniques
The Korea Real Estate Board is launching an international joint research project to incorporate global property tax assessment standards into the country's real estate valuation system. The project also aims to expand the global reach of Korea's valuation system.
The board said Tuesday that it signed a memorandum of understanding with the International Association of Assessing Officers on Aug. 31 to improve real estate tax assessment regimes and appraisal techniques.
The two organizations will conduct joint research on tax assessment systems and advanced appraisal methods going forward. They plan to benchmark cutting-edge property technology, including the latest appraisal models, artificial intelligence and geographic information systems, while also working to introduce Korea's real estate valuation system abroad.
To carry out the agreement, the board will dispatch one of its valuation experts to IAAO headquarters in Kansas City, Missouri. Alternatively, the expert could be sent to a US local government that partners with the association.
The IAAO is a nonprofit education and research organization with about 8,000 tax assessment professionals active across more than 80 countries. It sets international standards for property valuation, taxation and assessment administration. The board has been a member since 2010 and has served since 2025 on the association's research and standards committee, which oversees the establishment of assessment and administrative standards.
Through the partnership, the board plans to adapt advanced international standards to domestic conditions while using its global network to boost international confidence in Korea's property valuation system.
"This agreement will serve as an opportunity for Korea's property valuation system to advance to the next level in line with international standards," said Lee Heon-wook, president of the Korea Real Estate Board. "We hope this will help introduce the strengths of Korea's valuation system, which is already being exported to developing countries such as Vietnam and Laos, to advanced markets in North America and Europe as well."
Meanwhile, the Korea Real Estate Board is accepting reports of false real estate transaction price reporting during a roughly six-week crackdown period running from Aug. 13 to Sept. 18. Targets of the crackdown include so-called "down-contracts," in which parties draw up agreements listing a lower price than the actual transaction to evade taxes. Also targeted are "up-contracts," in which parties inflate the contract price to manipulate market prices or secure higher loan limits. Both practices violate the Act on Report of Real Estate Transactions. Helping or abetting false price reporting is also subject to the crackdown.
hwshin@heraldcorp.com
