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ACT ON APPRAISAL AND CERTIFIED APPRAISERS

Act No. 13782, Jan. 19, 2016

Amended by Act No. 14091, Mar. 22, 2016

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to protect people's property rights and to contribute to the development of national economy by planning for fair appraisals through the establishment of an appraisal system and a system for the certification of qualified appraisers.
 Article 2 (Definitions)
The terms used in this Act shall be defined as follows:
1. The term "land, etc." means land and the fixtures thereon, chattels, other property prescribed by Presidential Decree, and rights thereto other than ownership;
2. The term "appraisal" means valuation of land, etc. and expressing the result with numbers;
3. The term "appraisal business" means businesses of appraising land, etc. for a consideration upon request from other persons;
4. The term "appraisal business entity" means an appraiser who files a report pursuant to Article 21 or an appraisal corporation who receives authorization pursuant to Article 29.
CHAPTER II APPRAISAL
 Article 3 (Standards)
(1) Where an appraisal business entity appraises land, appraisal shall be based on the standards for the publicly announced price of representative land under the Act on the Public Announcement of Real Estate Values that is deemed to have usefulness similar to that of the land in question: Provided, That where there exists an appropriate transaction price, such price may be used as a standard.
(2) Notwithstanding paragraph (1), where an appraisal business entity conducts an appraisal necessary for the preparation of financial statements, etc. of an enterprise under the Act on External Audit of Stock Companies or an appraisal prescribed by Presidential Decree, such as the establishment of a security interest and auction, he/she may conduct an appraisal in consideration of the rent of the land, costs of creating the land, etc.
(3) Detailed principles and standards that appraisal businessmen are to comply with in order to guarantee the impartiality and reasonableness of appraisal shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
 Article 4 (Duties)
The duties of an appraiser shall be to appraise land, etc. upon request from other persons.
 Article 5 (Requests for Appraisal)
(1) Where the State, local governments, public institutions under the Act on the Management of Public Institutions or other public organizations prescribed by Presidential Decree (hereinafter referred to as "State, etc.") intend to appraise land, etc. for the management, purchase, sale, auction, reappraisal, etc. of land, etc., they shall request an appraisal business entity to appraise land, etc.
(2) Where a financial institution, insurance company, trust company, or an institution prescribed by Presidential Decree intends to appraise land, etc. with regard to loans, or purchase, sale and management of assets, or preparation of financial statements of an enterprise under the Act on External Audit of Stock Companies, they shall request an appraisal business entity to appraise the land, etc.
(3) A person intending to request an appraisal pursuant to paragraph (1) or (2) may request the Korea Association of Property Appraisers under Article 33 to recommend an appraisal business entity for appraisal.
(4) Matters necessary for procedures and methods for request under paragraphs (1) and (2), standards for recommendation under paragraph (3), etc. shall be prescribed by Presidential Decree.
 Article 6 (Appraisal Reports)
(1) Upon receipt of a request for appraisal, an appraisal business entity shall conduct an appraisal and issue an appraisal report to the appraisal requester as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(2) On an appraisal report, an appraisal business entity shall record the name of his/her office or corporation, and an appraiser who conducts an appraisal shall state his/her qualifications and put his/her signature and seal. In such cases, if the appraisal business entity is an appraisal corporation, the representative partner or representative director shall also put his/her signature or seal on the report.
(3) An appraisal business entity shall keep the original copy of an appraisal report and related documents for not less than the period prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, and in cases of business dissolution or closure, he/she shall keep them as prescribed by Presidential Decree.
 Article 7 (Examination of Appraisal Reports)
(1) An appraisal corporation shall, before issuing an appraisal report pursuant to Article 6, have another appraiser affiliated with the corporation examine the adequacy of the appraisal report prepared by one of the appraisers affiliated with the corporation, and have the appraiser who examines the adequacy indicate on the appraisal report that he/she has performed examination of the appraisal and put his/her signature and seal on it.
(2) Matters necessary for appraisal reports subject to examination under paragraph (1), examination procedures, etc. shall be prescribed by Presidential Decree.
 Article 8 (Inspection of Appropriateness of Appraisal)
(1) After an appraisal report is issued pursuant to Article 6, the Minister of Land, Infrastructure and Transport may inspect whether the relevant appraisal has been appropriately conducted according to the procedures, methods, etc. prescribed by this Act or other Acts, ex officio or at the request of relevant institutions, etc.
(2) Where an inspection of appropriateness under paragraph (1) is conducted, the Minister of Land, Infrastructure and Transport shall give the relevant appraisal business entity and interested persons prescribed by Presidential Decree an opportunity to express opinions.
(3) Matters necessary for procedures for inspection of appropriateness, etc. under paragraphs (1) and (2) shall be prescribed by Presidential Decree.
 Article 9 (Construction, Operation, etc. of Appraisal Information System)
(1) In order to efficiently and systematically manage information and data relating to appraisal requested by the State, etc., the Minister of Land, Infrastructure and Transport may construct and operate an appraisal information system (hereinafter referred to as "appraisal information system").
(2) An appraisal business entity in receipt of a request for appraisal prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, such as appraisal under the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects, shall register the results of the appraisal in an appraisal information system: Provided, That where justifiable reasons determined by the Minister of Land, Infrastructure and Transport, such as protection of personal information, exist, this shall not apply.
(3) Where needed for the operation of an appraisal information system, the Minister of Land, Infrastructure and Transport may request relevant agencies to provide data. In such cases, the agencies in receipt of such request shall comply therewith unless there is good cause.
(4) Matters necessary for the types of information and data, methods for the construction and operation of an appraisal information system, etc. under paragraphs (1) and (2) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
CHAPTER III APPRAISERS
Section 1 Duties and Qualification
 Article 10 (Duties of Appraisal Businessmen)
An appraisal business entity shall perform the following duties:
1. Duties performed by an appraisal business entity pursuant to the Act on the Public Announcement of Real Estate Values;
2. Appraisal of land, etc. for a purpose under subparagraph 2 of Article 8 of the Act on the Public Announcement of Real Estate Values;
3. Appraisal of land, etc. under the Assets Revaluation Act;
4. Appraisal of land, etc. for a case pending in a court or for auction;
5. Appraisal of land, etc. at the request of other persons, such as financial institutions, insurance companies, and trust companies;
6. Consultation and counsel with regard to appraisal;
7. Provision of advice, information, etc. on the use, development, etc. of land, etc.;
8. Appraisal of land, etc. that an appraisal business entity is allowed to perform pursuant to other statutes;
9. Duties appertaining to the duties under subparagraphs 1 through 8.
 Article 11 (Qualification)
Any person who passes an appraiser examination under Article 14 shall be qualified as an appraiser.
 Article 12 (Reasons for Disqualification)
Any person falling under any of the following shall not be qualified as an appraiser:
1. A minor, a person under adult guardianship, or a person under limited guardianship;
2. A person who has been declared bankrupt and is not yet reinstated;
3. A person for whom three years have not passed since his/her imprisonment without labor or greater punishment declared by a court was completely executed (including cases in which execution of his/her imprisonment is deemed to have been completed) or exempted;
4. A person who is under suspension of sentence of his/her imprisonment without labor or greater punishment declared by a court and for whom three years have not passed since the expiry date of the period of the suspension of sentence;
5. A person who is under suspension of sentence of his/her imprisonment without labor or greater punishment declared by a court;
6. A person for whom three years have not passed since his/her appraiser's license was revoked pursuant to Article 13;
7. A person for whom five years have not passed since his/her appraiser's license was revoked pursuant to Article 39 (1) 11 and 12.
 Article 13 (Revocation of License)
(1) Where an appraiser obtains an appraiser's license by improper means, the Minister of Land, Infrastructure and Transport shall revoke his/her license.
(2) Where the Minister of Land, Infrastructure and Transport revokes an appraiser's license pursuant to paragraph (1), he/she shall publicly announce such fact as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(3) A person whose appraiser's license is revoked pursuant to paragraph (1) shall return the certificate of license (including a registration certificate where registration is made pursuant to Article 17) to the Minister of Land, Infrastructure and Transport.
Section 2 Examinations
 Article 14 (Appraiser Examinations)
(1) An appraiser examination (hereinafter referred to as "examination") shall be administered by the Minister of Land, Infrastructure and Transport, and be composed of preliminary examination and secondary examination.
(2) A person who falls under a reason for disqualification under Article 12 as at the date on which final successful candidates are announced shall not be permitted to take an examination.
(3) Where a person becomes a final successful candidate after taking an examination despite the fact that he/she is not permitted to take an examination pursuant to paragraph (2), the Minister of Land, Infrastructure and Transport shall cancel his/her passing of the examination.
(4) Matters necessary for the procedures, methods, etc. of examination, such as subjects and public announcement of examinations, shall be prescribed by Presidential Decree.
(5) Those who intend to take an examination shall pay a fee prescribed by Presidential Decree within the scope of actual expenses. In such cases, matters necessary for the method of paying fees, return of fees, etc. shall be prescribed by Presidential Decree.
 Article 15 (Partial Exemption from Examinations)
(1) A person who has been engaged in duties relating to appraisal in an institution prescribed by Presidential Decree, such as an appraisal corporation, for five years or more shall be exempt from a preliminary examination.
(2) A person who passes a preliminary examination shall be exempt, one time only, from a preliminary examination of the next examination.
 Article 16 (Sanctions on Cheaters)
(1) The Minister of Land, Infrastructure and Transport shall suspend or invalidate the relevant examination with regard to any of the following persons:
1. A person who takes an examination by improper means;
2. A person who cheats in an examination;
3. A person who submits documents for partial exemption from an examination under Article 15 (1) by fraud or other improper means.
(2) A person on whom disposition is imposed pursuant to paragraph (1) shall not be permitted to take an examination for five years from the date he/she receives such disposition.
Section 3 Registration
 Article 17 (Registration and Renewal of Registration)
(1) Where a person with an appraiser's license under Article 11 intends to perform duties under Article 10, he/she shall receive in-service training for at least the period prescribed by Presidential Decree and register his/her license with the Minister of Land, Infrastructure and Transport.
(2) An appraiser who is registered as prescribed in paragraph (1) shall renew his/her registration as prescribed by Presidential Decree. In such cases, the renewal period shall be not less than three years.
(3) The in-service training under paragraph (1) shall be administered and managed by the Korea Association of Property Appraisers established under Article 33 with the approval of the Minister of Land, Infrastructure and Transport.
(4) Procedures necessary for applying for in-service training, registration, and renewal of registration under paragraphs (1) and (2), required documents, and other necessary matters shall be prescribed by Presidential Decree.
 Article 18 (Refusal of Registration and Renewal of Registration)
(1) Where a person who applies for registration or renewal of registration under Article 17 falls under any of the following, the Minister of Land, Infrastructure and Transport shall refuse registration:
1. Where he/she falls under any of the subparagraphs of Article 12;
2. Where he/she has not received in-service training under Article 17 (1);
3. Where three years have not passed since his/her license or registration was revoked pursuant to Article 39;
4. Where suspension period imposed on a person who was suspended from duties pursuant to Article 39 has not expired.
(2) Where the Minister of Land, Infrastructure and Transport refuses registration or renewal of registration pursuant to paragraph (1), he/she shall publicly announce such fact in the official gazette and notify the public thereof through an information and communications network, etc.
(3) The methods and details of public announcement under paragraph (2) and other necessary matters shall be prescribed by Presidential Decree.
 Article 19 (Revocation of Registration)
(1) Where an appraiser who is registered pursuant to Article 17 falls under any of the following, the Minister of Land, Infrastructure and Transport shall revoke registration:
1. Where he/she falls under any of the subparagraphs of Article 12;
2. Where he/she dies;
3. Where he/she applies for revocation.
(2) Where the Minister of Land, Infrastructure and Transport revokes the registration of an appraiser pursuant to paragraph (1), he/she shall publicly announce such fact in the official gazette and notify the public thereof through an information and communications network, etc.
(3) A person whose registration is revoked pursuant to paragraph (1) shall return his/her certificate of registration to the Minister of Land, Infrastructure and Transport.
(4) The methods and details of public announcement under paragraph (2) and other necessary matters shall be prescribed by Presidential Decree.
 Article 20 (Foreign Appraisers)
(1) A person with a foreign appraiser's license who does not fall under a reason for disqualification under Article 12 may perform duties under the subparagraphs of Article 10 with authorization of the Minister of Land, Infrastructure and Transport insofar as his/her country recognizes appraiser's licenses granted by the government of the Republic of Korea.
(2) Where the Minister of Land, Infrastructure and Transport grants authorization under paragraph (1), he/she may restrict part of the duties performed by a foreign appraiser, if necessary.
(3) In addition to those prescribed in paragraphs (1) and (2), matters necessary for foreign appraisers shall be prescribed by Presidential Decree.
Section 4 Rights and Obligations
 Article 21 (Report on Establishment of Offices, etc.)
(1) Where an appraiser who makes registration pursuant to Article 17 intends to operate an appraisal business, he/she shall report the establishment of an appraisal office to the Minister of Land, Infrastructure and Transport. The same shall also apply to the change of reported matters and to the suspension or closure of the appraisal business.
(2) Any of the following persons shall not be permitted to report the establishment of an appraisal office under paragraph (1):
1. A person falling under any of the subparagraphs of Article 18 (1);
2. Where the authorization for the establishment of an appraisal corporation was revoked or its business was suspended under Article 32 (1) (excluding subparagraphs 1, 7, and 15) and one year has not passed since the revocation or the business suspension period has not expired yet, a person who has been a partner or director of such appraisal corporation;
3. An appraiser suspended from duties pursuant to Article 32 (1) (excluding subparagraphs 1 and 7) whose suspension period has not expired.
(3) In order to efficiently perform duties and to enhance public confidence, appraisers may establish a joint office consisting of appraisers of a number the same as or more than the number prescribed by Presidential Decree, if necessary.
(4) An appraiser shall be permitted to establish only one office for the operation of an appraisal business.
(5) An appraisal office may employ appraisers. In such cases, the appraisers affiliated with the appraisal office shall not be those falling under any of the subparagraphs of Article 18 (1), and the appraiser who reports the establishment of the appraisal office shall not have persons other than the affiliated appraisers perform duties under Article 10.
(6) The procedures for reporting on the establishment of an appraisal office and other necessary matters shall be prescribed by Presidential Decree.
 Article 22 (Names of Offices, etc.)
(1) An appraisal business entity who files a report under Article 21 shall use the word "appraisal office" as the name of the office, and a corporation under Article 29 shall use the word "appraisal corporation" as its name.
(2) A person who is not an appraiser under this Act shall not use the name "appraiser" or other similar names, and a person who is not an appraisal business entity shall not use the name "appraisal office", "appraisal corporation" or other similar names.
 Article 23 (Fees, etc.)
(1) An appraisal business entity may collect fees for services and actual costs from customers.
(2) The fee rate and the range of actual costs under paragraph (1) shall be determined by the Minister of Land, Infrastructure and Transport after deliberation by the appraisal management and disciplinary committee under Article 40.
(3) Appraisal business entities shall comply with the standard for the fee rate and actual costs under paragraph (2).
 Article 24 (Clerical Workers)
(1) An appraisal business entity may employ clerical workers who assist his/her duties.
(2) An appraisal business entity shall be responsible for the direction and supervision of clerical workers.
 Article 25 (Duty of Good Faith, etc.)
(1) Where an appraisal business entity (including an appraiser affiliated with an appraisal corporation or an appraisal office; hereafter the same shall apply in this Article) performs duties under Article 10, he/she shall maintain dignity and conduct appraisals with good faith and sincerity, and shall not make a mistake in appraisal willfully or by gross negligence.
(2) An appraisal business entity shall not conduct an appraisal of land, etc. possessed by himself/herself or a relative or land, etc. an appraisal of which is deemed likely to be unfair.
(3) An appraisal business entity shall not be directly engaged in the business of selling or buying land, etc.
(4) An appraisal business entity may not receive payment with regard to duties under any circumstances besides the fees and actual costs under Article 23, and shall not provide or promise to provide money or profits in property in return for being awarded with an appraisal order.
(5) An appraiser shall not be affiliated with two or more appraisal corporations or appraisal offices.
 Article 26 (Confidentiality)
An appraisal business entity (including an appraiser affiliated with an appraisal corporation or an appraisal office; hereafter the same shall apply in this Article), a clerical worker thereof, or a person who has been an appraisal business entity or a clerical worker thereof shall not disclose classified information that he/she has learned in the course of duties: Provided, That where otherwise specifically provided by other statutes, this shall not apply.
 Article 27 (Prohibition on Lending of Names, etc.)
An appraiser or appraisal business entity shall not allow another person perform duties under Article 10 using his/her name or company name, or transfer or lend his/her certificate of license, certificate of registration, or certificate of authorization, or abuse the certification in an unfair manner.
 Article 28 (Liability for Damages)
(1) Where an appraisal business entity causes harm to an appraisal requester or a third party in good faith by conducting an appraisal the outcome of which shows a marked difference from fair value at the time of appraisal by intention or mistake, or by recording deceit in the appraisal report, the appraisal business entity shall be liable for damages.
(2) In order to guarantee liability for damages under paragraph (1), an appraisal business entity shall take necessary measures, such as buying insurance as prescribed by Presidential Decree and participating in a mutual-aid society managed by the Korea Association of Property Appraisers under Article 33.
Section 5 Appraisal Corporations
 Article 29 (Establishment, etc.)
(1) In order to systematically perform duties under Article 10, an appraiser may establish an appraisal corporation.
(2) The partners or directors of an appraisal corporation shall be appraisers: Provided, That a person who is not an appraiser may become the representative partner or representative director of an appraisal corporation, and in such cases, the representative partner or representative director of the appraisal corporation shall be a person who does not fall under any of the subparagraphs of Article 12.
(3) An appraisal corporation, and the main office and branch offices thereof shall have appraisers of a number not less than the number prescribed by Presidential Decree. In such cases, appraisers affiliated with an appraisal corporation shall not be a person falling under any of the subparagraphs of Article 18 (1).
(4) Where an appraisal corporation is to be established, persons who are to be partners of the appraisal corporation or its promoters who are appraisers shall jointly prepare articles of incorporation including the following matters and obtain authorization from the Minister of Land, Infrastructure and Transport as prescribed by Presidential Decree, and the same shall apply to the change of the articles of incorporation: Provided, That the change of minor matters prescribed by Presidential Decree may be reported:
1. Objectives;
2. Name;
3. Location of the main office and branch offices;
4. Names and addresses of partners (promoters in the case of a stock company);
5. Matters concerning investment by partners (issuance of stocks in the case of a stock company);
6. Matters concerning duties.
(5) Where all partners give consent or the general meeting of shareholders passes a resolution, an appraisal corporation may merge with another appraisal corporation with the authorization of the Minister of Land, Infrastructure and Transport.
(6) An appraisal corporation shall not allow a person other than an appraiser affiliated with the corporation to perform duties under Article 10.
(7) An appraisal corporation shall keep business accounts according to the accounting standards under Article 13 of the Act on External Audit of Stock Companies.
(8) An appraisal corporation shall prepare financial statements under subparagraph 1 of Article 1-2 of the Act on External Audit of Stock Companies, and submit them to the Minister of Land, Infrastructure and Transport within three months after completion of each fiscal year as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(9) The Minster of Land, Infrastructure and Transport may examine whether financial statements under paragraph (8) are properly prepared, if necessary.
(10) The provisions concerning companies among the Commercial Act shall apply mutatis mutandis to appraisal corporations in addition to those prescribed by this Act.
 Article 30 (Dissolution)
(1) An appraisal corporation shall be dissolved where it falls under any of the following:
1. Occurrence of a reason for dissolution prescribed by the articles of incorporation;
2. Adoption of a resolution by the general meeting of partners or stockholders;
3. Merger;
4. Revocation of authorization for establishment;
5. Bankruptcy;
6. An order or judgement of a court.
(2) Where an appraisal corporation dissolves, it shall make a report to the Minister of Land, Infrastructure and Transport as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
 Article 31 (Capital, etc.)
(1) An appraisal corporation shall have a capital of 200 million won or more.
(2) If an amount obtained by deducting total liabilities from total assets on the statement of financial position as at the end of the immediately preceding business year is less than 200 million won, an appraisal corporation shall replenish the shortfall with contributions from partners or increase its capital within six months of the end of each business year.
(3) The contributions under paragraph (2) shall be counted as a special profit.
(4) Where an appraisal corporation does not replenish the shortfall or increase its capital as prescribed in paragraph (2), the Minister of Land, Infrastructure and Transport may order it to replenish the shortfall or to increase its capital within a specified period.
 Article 32 (Revocation of Authorization, etc.)
(1) Where an appraisal business entity falls under any of the following, the Minister of Land, Infrastructure and Transport may revoke authorization for the establishment thereof (limited to an appraisal corporation under Article 29) or order it to suspend duties for a specified period for up to two years: Provided, That where it falls under subparagraph 2 or 7, he/she shall revoke authorization for establishment:
1. Where the appraisal corporation applies for the revocation of authorization for establishment;
2. Where the appraisal business entity performs duties under Article 10 while the disposition of suspension from duties is valid;
3. Where the appraisal business entity allows an affiliated appraiser on whom disposition of suspension from duties is imposed to perform duties under Article 10 while the disposition is in effect;
4. Where the appraisal business entity conducts an appraisal in violation of Article 3 (1);
5. Where the appraisal business entity conducts an appraisal in violation of the appraisal rules under Article 3 (3);
6. Where the appraisal business entity violates matters concerning the preparation and issuance of an appraisal report under Article 6;
7. Where the appraisal business entity fails to supplement appraisers within three months from the date on which the number of affiliated appraisers is less than the number prescribed in Article 21 (3) or 29 (3);
8. Where the appraisal business entity establishes two or more appraisal offices in violation of Article 21 (4);
9. Where the appraisal business entity allows a person other than an appraiser to perform duties under Article 10 in violation of Article 21 (5) or 29 (6);
10. Where the appraisal business entity does not comply with the standard for the fee rate and actual costs in violation of Article 23 (3);
11. Where the appraisal business entity violates Article 25, 26, or 27: Provided, That where an affiliated appraiser violates Article 25 (4) and the appraisal business entity has not been negligent in exercising due care and supervision with regard to relevant duties in order to prevent such violation, this shall not apply;
12. Where the appraisal business entity does not buy insurance or join a mutual-aid society managed by the Korea Association of Property Appraisers in violation of Article 28 (2);
13. Where the appraisal business entity obtains authorization by improper means, such as preparing false articles of incorporation;
14. Where the appraisal business entity does not keep accounts under Article 29 (7), or does not prepare and submit financial statements under paragraph (8) of the same Article;
15. Where the appraisal business entity does not replenish the shortfall or increase capital within the period under Article 31 (2) or (4);
16. Where the appraisal business entity falls under any of the following with regard to guidance, supervision, etc. under Article 47:
(a) Where the appraisal business entity does not submit a report or data on matters concerning duties, or make a false report or submits false data;
(b) Where the appraisal business entity rejects, obstructs or evades inspection of books, documents, etc.
(2) Where the Korea Association of Property Appraisers under Article 33 deems that an appraisal business entity has a reason for which he/she falls under any of the subparagraphs of paragraph (1), it may make a request, accompanied by evidentiary documents, to the Minister of Land, Infrastructure and Transport to impose disposition of revocation of authorization for establishment or disposition of suspension from duties on the appraisal business entity.
(3) Where the Minister of Land, Infrastructure and Transport revokes authorization for establishment or suspends duties pursuant to paragraph (1), he/she shall publicly announce the fact in the official gazette and notify the public thereof through an information and communications network, etc.
(4) The disposition of revocation of authorization for establishment or disposition of suspension from duties under paragraph (1) shall not be imposed after five years pass from the date a reason for disposition arises.
(5) The standard for revocation of authorization for establishment and the standard for suspension from duties under paragraph (1) shall be prescribed by Presidential Decree, and the methods and details of public announcement under paragraph (3) and other necessary matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
CHAPTER IV KOREA ASSOCIATION OF PROPERTY APPRAISERS
 Article 33 (Objectives and Establishment)
(1) In order to maintain the dignity of appraisers, to plan improvement and development of duties and to perform affairs concerning the management and guidance of members, a Korea Association of Property Appraisers (hereinafter referred to as "Association") shall be established.
(2) The Association shall be a juristic person.
(3) The Association shall be established when its establishment is registered at the address of its main office with authorization of the Minister of Land, Infrastructure and Transport.
(4) The Association may operate a mutual-aid society as specified by its bylaws.
(5) The organization of the Association and other necessary matters shall be prescribed by Presidential Decree.
(6) In addition to those prescribed by this Act concerning the Association, the provisions of the Civil Act concerning incorporated associations shall apply mutatis mutandis.
 Article 34 (Bylaws)
(1) The Association shall determine bylaws and obtain authorization from the Minister of Land, Infrastructure and Transport. The same shall apply to the change thereof.
(2) The bylaws under paragraph (1) shall include following matters:
1. Name and address of office;
2. Matters concerning joining the Association as a member and withdrawal therefrom;
3. Matters concerning the composition of executives;
4. Matters concerning rights and obligations of members;
5. Matters concerning guidance and management of members;
6. Matters concerning asset and accounting;
7. Other necessary matters.
 Article 35 (Obligation to Join Association, etc.)
(1) Appraisal business entities and their affiliated appraisers shall be obliged to join the Association as a member, and other appraisers may join the Association as a member.
(2) Appraisal business entities and appraisers who join the Association as a member shall keep the bylaws under Article 34.
 Article 36 (Ethics Rules)
(1) The Association shall determine the rules of professional conduct that members are to keep in performing duties.
(2) Members shall keep the rules of professional conduct under paragraph (1).
 Article 37 (Counsel, etc.)
(1) With regard to the duties of appraisers under Article 4, the State may seek counsel of the Association on such duties or entrust the Association with such duties.
(2) Where the Association is in receipt of a request for counsel or is entrusted with duties pursuant to paragraph (1), it may have members perform such duties.
(3) The Association may, if necessary, propose that the State, etc. improve duties concerning the management, supervision, request, etc. of appraisal.
 Article 38 (Education, Training, etc. of Members)
(1) The Association shall implement education and training of the following persons, and guide and manage autonomous education and training by members:
1. Members;
2. Appraisers who intend to register with the Minister of Land, Infrastructure and Transport pursuant to Article 17.
(2) In order to implement education and training under paragraph (1), the Association may have a training center.
(3) Matters necessary for education, training, guide and management under paragraph (1) shall be determined by the Association with the approval of the Minister of Land, Infrastructure and Transport.
CHAPTER V DISCIPLINARY ACTIONS
 Article 39 (Disciplinary Actions)
(1) Where an appraiser falls under any of the following, the Minister of Land, Infrastructure and Transport may take a disciplinary action falling under any of the subparagraphs of paragraph (2) against him/her according to a decision made by the appraisal management and disciplinary committee under Article 40: Provided, That a disciplinary action under paragraph (2) 1 shall be taken only in cases in which he/she violates subparagraph 11 or 12, or he/she transfers or lends a certificate of license, certificate of registration, or certificate of authorization to another person in violation of Article 27:
1. Where the appraiser conducts an appraisal in violation of Article 3 (1);
2. Where the appraiser conducts an appraisal in violation of the appraisal rules under Article 3 (3);
3. Where the appraiser violates matters concerning the preparation, issuance, etc. of an appraisal report under Article 6;
4. Where the appraiser performs duties under Article 10 while the disposition of suspension from duties imposed on him/her is valid, or lets an affiliated appraiser, on whom disposition of suspension from duties is imposed, perform duties under Article 10 while the disposition of suspension from duties imposed on him/her is valid;
5. Where the appraiser performs duties under Article 10 without making registration or renewal of registration under Article 17 (1) or (2);
6. Where the appraiser makes registration or renewal of registration under Article 17 (1) or (2) by improper means, such as preparing required documents by fraud;
7. Where the appraiser operates an appraisal business in violation of Article 21;
8. Where the appraiser does not comply with the standard for the fee rate and actual costs in violation of Article 23 (3);
9. Where the appraiser violates Article 25, 26, or 27;
10. Where the appraiser falls under any of the following with regard to guidance, supervision, etc. under Article 47:
(a) Where he/she does not report matters on duties or submit data, or makes a false report or submits false data;
(b) Where he/she rejects, obstructs, or evades inspection of books, documents, etc.;
11. Where the appraiser has been sentenced to imprisonment without labor or greater punishment more than two times (including cases of suspension of execution), and the sentence becomes definite: Provided, That a person whose violation was done by negligence shall be excluded;
12. A person on whom disposition of a disciplinary action has been imposed two times or more pursuant to this Act which is valid for not less than one year and who is again subject to a disciplinary action under paragraph (1) and is thus deemed to be remarkably unsuitable for performing the duties of an appraiser.
(2) The types of disciplinary actions against appraisers shall be as follows:
1. Revocation of a license;
2. Revocation of registration;
3. Suspension from duties for not more than two years;
4. Reprimand.
(3) Where the Association deems that an appraiser is subject to any of the disciplinary actions under the subparagraphs of paragraph (1), it may make a request, accompanied by evidentiary documents, to the Minister of Land, Infrastructure and Transport for a disciplinary action against the appraiser.
(4) A person whose license is revoked pursuant to paragraph (1) or (2) shall return his/her certificate of license or registration to the Minister of Land, Infrastructure and Transport, and a person whose registration is revoked or who is suspended from duties shall return his/her certificate of registration to the Minister of Land, Infrastructure and Transport.
(5) Article 19 (2) and (4) shall apply mutatis mutandis to the revocation of license or registration under paragraphs (1) and (2).
(6) The decision of a disciplinary action under paragraph (1) shall be made at the request of the Minister of Land, Infrastructure and Transport, and a request for decision on a disciplinary action shall not be made after five years pass from the date the violation is committed.
 Article 40 (Appraisal Management and Disciplinary Committee)
(1) An appraisal management and disciplinary committee (hereinafter referred to as "committee") shall be established in the Ministry of Land, Infrastructure and Transport to deliberate and to make decisions on the following matters:
1. Matters referred by the Minister of Land, Infrastructure and Transport from among the matters on the enactment and amendment of appraisal-related statutes;
2. Matters concerning appraiser examinations under Article 14;
3. Matters concerning the fee rate and the range of actual costs under Article 23;
4. Matters concerning disciplinary actions under Article 39;
5. Other matters concerning appraisal referred by the Minister of Land, Infrastructure and Transport.
(2) Matters necessary for the composition, operation, etc. of the committee shall be prescribed by Presidential Decree.
CHAPTER VI PENALTY SURCHARGES
 Article 41 (Imposition of Penalty Surcharges)
(1) Where an appraisal business entity falls under any of the subparagraphs of Article 32 (1), and thus the Minister of Land, Infrastructure and Transport is to impose disposition of suspension from duties and such disposition of suspension from duties is likely to damage public interest, such as causing obstruction to the normal performance of the duties of publicly announcing the price of representative land under Article 3 of the Act on the Public Announcement of Real Estate Values, the Minister of Land, Infrastructure and Transport may impose a penalty surcharge not exceeding 50 million won (500 million won in the case of an appraisal corporation) in place of disposition of suspension from duties.
(2) Where the Minister of Land, Infrastructure and Transport imposes disposition of suspension from duties under paragraph (1), he/she shall consider the following matters:
1. Details and degrees of violations;
2. Period and frequency of violations;
3. Scale of benefits obtained from violations.
(3) Where an appraisal corporation that violates this Act merges with another corporation, the Minister of Land, Infrastructure and Transport may, deeming the violation committed by the appraisal corporation is a violation committed by an appraisal corporation that survives the merger or is newly established following the merger, impose and collect a penalty surcharge from the surviving appraisal corporation or newly established appraisal corporation.
(4) Matters necessary for the standards for imposition of penalty surcharges, etc. under paragraphs (1) through (3) shall be prescribed by Presidential Decree.
 Article 42 (Raising of Objections)
(1) A person who has an objection against the imposition of a penalty surcharge under Article 41 may raise an objection, accompanied by a written reason, to the Minister of Land, Infrastructure and Transport within 30 days from the date he/she is notified thereof.
(2) The Minister of Land, Infrastructure and Transport shall make a determination on the objection under paragraph (1) within 30 days: Provided, That where he/she is unable to make a determination due to unavoidable reasons, he/she may extend the period for up to 30 days.
(3) A person who is dissatisfied with a determination under paragraph (2) may file an administrative appeal under the Administrative Appeals Act.
 Article 43 (Extension of Deadline to Pay Penalty Surcharges and Installment Payments)
(1) Where a person on whom a penalty surcharge is imposed (hereinafter referred to as "surcharge payer") is deemed to be unable to pay the whole penalty surcharge at one time due to a reason falling under any of the following, the Minister of Land, Infrastructure and Transport may extend the payment deadline or allow the person to make installment payments. In such cases, the Minister may have the person provide a security, if necessary:
1. Where he/she suffers severe loss of property due to disasters, etc.;
2. Where he/she is expected to encounter financial difficulty if he/she pays the penalty surcharge at one time;
3. Where a reason corresponding to subparagraph 1 or 2 exists.
(2) Where a surcharge payer is to be granted extension of deadline to pay a penalty surcharge or to be allowed to make installment payments pursuant to paragraph (1), he/she shall file an application with the Minister of Land, Infrastructure and Transport not later than 10 days before the deadline.
(3) Where a surcharge payer who is granted extension of deadline to pay a penalty surcharge or is allowed to make installment payments pursuant to paragraph (1) falls under any of the following, the Minister of Land, Infrastructure and Transport may revoke the extension of payment deadline or the determination of installment payments and collect the penalty surcharge at one time:
1. Where he/she fails to pay the penalty surcharge, the payment of which is determined to be made in installments, within the payment deadline;
2. Where the security is changed or an order of the Minister of Land, Infrastructure and Transport necessary for the preservation of security is not followed;
3. Where collection of the penalty surcharge, in whole or in part, is deemed impossible because of compulsory execution, commencement of auction, declaration of bankruptcy, dissolution of the corporation, disposition on default of national taxes or local taxes being imposed on him/her, etc.;
4. Where a reason corresponding to subparagraphs 1 through 3 exists.
(4) Matters necessary for the extension of deadline to pay penalty surcharges, installment payments, provision of a security, etc. under paragraphs (1) through (3) shall be prescribed by Presidential Decree.
 Article 44 (Collection of Penalty Surcharges and Disposition on Default)
(1) Where a surcharge payer fails to pay a penalty surcharge within the payment deadline, the Minister of Land, Infrastructure and Transport may collect an additional charge prescribed by Presidential Decree for the period from the day after the payment deadline to the day payment is made.
(2) Where a surcharge payer fails to pay the penalty surcharge within the payment deadline, the Minister of Land, Infrastructure and Transport may urge him/her to pay the penalty surcharge within a specified period, and if he/she fails to pay the penalty surcharge or the additional charge under paragraph (1) within the specified period, the Minister may collect it according to the example of disposition on default of national taxes.
(3) Matters necessary for the collection of penalty surcharges, procedures for imposing disposition on default, etc. shall be prescribed by Presidential Decree.
CHAPTER VII SUPPLEMENTARY PROVISIONS
 Article 45 (Hearings)
Where the Minister of Land, Infrastructure and Transport intends to impose disposition falling under any of the following, he/she shall hold a hearing:
1. Revocation of an appraiser's license under Article 13 (1);
2. Revocation of authorization for establishment of an appraisal corporation under Article 32 (1).
 Article 46 (Entrustment of Duties)
(1) The Minister of Land, Infrastructure and Transport may entrust following duties among his/her duties under this Act to the Korea Appraisal Board (hereinafter referred to as "Korea Appraisal Board") under the Korea Appraisal Board Act, the Human Resources Development Service of Korea under the Human Resources Development Service of Korea Act or the Association: Provided, That he/she shall entrust the duties under subparagraph 3 to the Association only:
1. Duties prescribed by Presidential Decree with regard to the inspection of appropriateness of appraisal under Article 8;
2. Management of appraiser examinations under Article 14;
3. Registration of appraisers and renewal of registration of appraisers under Article 17;
4. Other duties prescribed by Presidential Decree.
(2) Where the Minister of Land, Infrastructure and Transport entrusts duties to other institutions pursuant to paragraph (1), he/she may support them with necessary expenses within budgetary limits.
 Article 47 (Guidance and Supervision)
(1) Where needs arise for supervision, the Minister of Land, Infrastructure and Transport may order appraisal business entities or the Association to report on their duties or to submit data, or issue them other necessary orders, and have affiliated public officials enter their offices to inspect books, documents, etc.
(2) Public officials entering the offices of appraisal business entities or the Association and making inspections shall carry a certificate indicating their authority and show it to interested parties.
 Article 48 (Legal Fiction as Public Official in Application of Penalty Provisions)
Any of the following persons shall be deemed a public official in application of the provisions of Articles 129 through 132 of the Criminal Act:
1. An appraiser who performs duties under subparagraphs 1 and 2 of Article 10;
2. A member of the Committee under Article 40 who is not a public official;
3. An executive officer or an employee of the Association engaged in the entrusted duties under Article 46.
CHAPTER VIII PENALTY PROVISIONS
 Article 49 (Penalty Provisions)
Any person who falls under any of the following shall be punished by imprisonment with labor for not more than two years or a fine not exceeding 30 million won:
1. A person who obtains an appraiser's license by improper means;
2. A person who is not an appraisal business entity and operates an appraisal business;
3. A person who makes registration or renews registration under Article 17 by improper means, such as preparing required documents using deceit;
4. A person whose registration or renewal of registration is refused pursuant to Article 18 or whose license or registration is revoked pursuant to Article 13, 19, or 39 performs duties under Article 10;
5. A person who intentionally conducts a false appraisal in violation of Article 25 (1);
6. A person who receives payment with regard to duties or who provides or promises to provide money or profits in property in return for being awarded with an appraisal order in violation of Article 25 (4);
7. A person who obtains authorization under Article 29 by improper means, such as preparing false articles of incorporation.
 Article 50 (Penalty Provisions)
Any of the following persons shall be punished by imprisonment with labor for not more than one year or a fine not exceeding 10 million won:
1. A person who establishes two or more offices in violation of Article 21 (4);
2. A person who allows a person other than an affiliated appraiser to perform duties under Article 10 in violation of Article 21 (5) or 29 (6);
3. A person who violates Article 25 (3) or (5) or Article 26;
4. A person who transfers or lends an appraiser's license or certificate of registration or certificate of authorization for an appraisal corporation, or a person who obtains it by transfer or borrows it.
 Article 51 (Joint Penalty Provisions)
If the representative of a corporation, or the agent, servant or employee of a corporation or individual violates Article 49 or 50 in connection with the duties of the corporation or individual, not only shall the violator be punished according thereto, but also the corporation or individual shall be punished by a fine thereunder: Provided, That this shall not apply where the corporation or individual has not been negligent in giving due attention and supervision concerning the relevant duties in order to prevent such violation.
 Article 52 (Administrative Fines)
(1) Any of the following persons shall be punished by an administrative fine not exceeding 5 million won:
1. A person who does not keep the original copy of an appraisal report and related documents in violation of Article 6 (3);
2. A person who does not register the appraisal outcome on an appraisal information system in violation of Article 9 (2);
3. A person who does not return his/her certificate of license or registration in violation of Article 13 (3), 19 (3), or 39 (4);
4. A person who operates an appraisal business without making a report, etc. on the establishment of an appraisal office under Article 21 (1);
5. An appraiser who makes a report under Article 21 and does not take necessary measures, such as buying insurance, joining a mutual-aid society operated by the Association, etc. in violation of Article 28 (2);
6. A person who does not use the word "appraisal office" or "appraisal corporation" in violation of Article 22 (1), or a person who uses the word "appraiser", "appraisal office", "appraisal corporation", or similar appellations in violation of paragraph (2) of the same Article;
7. A person who refuses, obstructs or evades report, submission of data, orders or inspections, or makes a false report to the Minister of Land, Infrastructure and Transport with regard to duties under Article 47.
(2) The administrative fines under paragraph (1) shall be imposed and collected by the Minister of Land, Infrastructure and Transport as prescribed by Presidential Decree.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on September 1, 2016.
Article 2 (General Transitional Measures)
Where this Act contains provisions applicable to the disposition, procedures or other acts imposed, adopted or performed pursuant to the previous Act on the Public Announcement of Values and Appraisal of Real Estate at the time this Act enters into force, such disposition, procedures or acts shall be deemed to have been imposed, adopted or performed pursuant to this Act.
Article 3 (Transitional Measures concerning Incompetent Persons etc.)
Persons placed under adult guardianship or limited guardianship under subparagraph 1 of Article 12 shall be deemed to include persons to whom a court's declaration of incompetence or quasi-incompetence remains effective pursuant to Article 2 of the Addenda of the Civil Act (Act No. 10429).
Article 4 (Transitional Measures concerning Appraisers, Appraisal Offices, and Appraisal Corporations)
(1) Appraisers under the previous Act on the Public Announcement of Values and Appraisal of Real Estate at the time this Act enters into force shall be deemed appraisers under this Act.
(2) Appraisers registered pursuant to the previous Act on the Public Announcement of Values and Appraisal of Real Estate at the time this Act enters into force shall be deemed to have registered pursuant to this Act.
(3) A person who has reported the establishment of an appraisal office pursuant to the previous Act on the Public Announcement of Values and Appraisal of Real Estate at the time this Act enters into force shall be deemed to have reported the establishment of an appraisal office pursuant to this Act.
(4) An appraisal corporation that has received authorization pursuant to the previous Act on the Public Announcement of Values and Appraisal of Real Estate at the time this Act enters into force shall be deemed an appraisal corporation under this Act: Provided, That a corporation deemed to be an appraisal corporation under Article 8 of the Addenda of the previous Act (Act No. 7335), otherwise known as the Public Notice of Values and Appraisal of Lands, etc. Act shall not be deemed an appraisal corporation.
Article 5 (Transitional Measures concerning Examinations)
Persons who have succeeded in the preliminary examination of an appraiser examination implemented pursuant to the previous Act on the Public Announcement of Values and Appraisal of Real Estate at the time this Act enters into force shall be deemed to have succeeded in the preliminary examination of the appraiser examination implemented in the same year pursuant to this Act.
Article 6 (Transitional Measures concerning Korea Association of Property Appraisers)
The Korea Association of Property Appraisers established pursuant to Article 40 of the previous Act on the Public Announcement of Values and Appraisal of Real Estate at the time this Act enters into force shall be deemed the Korea Association of Property Appraisers established pursuant to this Act.
Article 7 Omitted.
Article 8 (Relationship with Other Acts)
Where the Act on the Public Announcement of Values and Appraisal of Real Estate or provisions thereof are cited in other statutes at the time this Act enters into force, and this Act contains provisions corresponding thereto, this Act or relevant provisions of this Act shall be deemed to have been cited in place of the previous Act on the Public Announcement of Values and Appraisal of Real Estate or provisions thereof.
ADDENDA <Act No. 14091, Mar. 22, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation: Provided, That Article 2 of the Addenda shall enter into force on September 1, 2016.
Article 2 Omitted.