Strengthening Verification of Lease Transaction Data to Boost Utilization [Real Estate AtoZ]

Korea Real Estate Board to Upgrade Transaction Management System
Preemptive Check on Risk of Negative Equity Leases
Stricter Verification Procedures Implemented

Korea Real Estate Board has decided to revamp its Real Transaction Price Disclosure System. The improvement aims to prevent incorrect or delayed disclosures of real transaction data caused by errors in reporting.

According to relevant government ministries, the Korea Real Estate Board will commission a project to upgrade the functions of the Real Estate Transaction Management System. This system, introduced in 2006, processes all real estate transaction and lease reports nationwide. It is commonly used to obtain real estate transaction information by linking with the Ministry of Land, Infrastructure and Transport’s Real Transaction Price Disclosure System, which requires reports to be filed with local governments within 30 days after a transaction contract is signed.

Additionally, the system is directly or indirectly connected with the Supreme Court’s registration system, the Ministry of the Interior and Safety and the National Tax Service systems for collecting tax payment data, as well as the Ministry of Health and Welfare’s social security and health insurance systems.

A notice is posted at a real estate agency in downtown Seoul. Photo by Yonhap News Agency

The main focus of this project will be to enhance the verification process for real transaction data. When disclosing monthly or long-term lease transactions, the official appraisal price will be used for verification. By utilizing this appraisal price, the system will be able to detect and correct errors such as mistakenly swapping the deposit and monthly rent amounts during reporting, or entering an extra zero in the figures, thereby improving the reliability of real transaction data.

With stronger transaction data verification, the accuracy and timeliness of disclosed real transaction data are expected to improve, leading to greater utilization by private market price information providers and real estate proptech companies. A representative of the Korea Real Estate Board stated, "Real transaction information is used as essential data when signing monthly or long-term lease contracts," adding, "We will continue to improve the system to better serve the public."

Other planned improvements include adding features that automatically notify both landlords and tenants when a fixed date is assigned, a revision and history tracking function for supporting documents attached to funding plans, and a new function to extract statistical data upon request from external institutions.

This content was produced with the assistance of AI translation services.