The purpose of this Act is to contribute to maintaining stability and order in the real estate market by incorporating the Korea Appraisal Board and having it publicly announce real estate values and engage in the management of statistics and information as well as in the research and management for supporting real estate market policies, etc.
| Article 2 (Legal Personality) |
The Korea Appraisal Board (hereinafter referred to as the “Appraisal Board”) shall be a legal entity.
| (1) | The location of the principal office of the Appraisal Board shall be in accordance with its articles of incorporation. |
| (2) | The Appraisal Board, if necessary to perform its duties, may have branches, offices, research institutes, and other affiliated institutions by a resolution of the board of directors. |
| (1) | The Appraisal Board shall have a capital of 50 billion won. |
| (2) | The amount of the capital referred to in paragraph (1) shall be contributed by the Government: Provided, That the Appraisal Board may invite shareholders to subscribe for new shares worth the amount not exceeding 1/2 of its capital. |
| (3) | The capital of the Appraisal Board shall be divided into shares. |
| Article 5 (Issuance of Shares) |
The types of the shares to be issued by the Appraisal Board, par value per share, date of issuance, total number of the shares to be issued, the amount, date and method of payment of share capital, and other necessary matters shall be prescribed by Presidential Decree: Provided, That if the Government contributes the capital, the date and method of paying share capital shall be determined by the Minister of Economy and Finance.
| Article 6 (Articles of Incorporation) |
| (1) | The articles of incorporation of the Appraisal Board shall include the following: |
| 3. | Location of the principal office; |
| 4. | Matters concerning the executive officers and employees; |
| 5. | Matters concerning the operation of the board of directors; |
| 6. | Matters concerning the business affairs; |
| 7. | Matters concerning the property and accounting; |
| 8. | Matters concerning any amendment to the articles of incorporation; |
| 9. | Matters concerning public announcement. |
| (2) | The Appraisal Board shall prepare articles of incorporation and obtain authorization therefor from the Minister of Land, Infrastructure and Transport. The same shall apply to any amendment to the articles of incorporation authorized. |
| (1) | The Appraisal Board shall come into existence by effecting the registration of incorporation at the location of its principal office. |
| (2) | The registration of incorporation under paragraph (1) and other matters necessary for the registration shall be prescribed by Presidential Decree. |
| Article 8 (Prohibition on Use of Similar Name) |
No person other than the Appraisal Board shall use the name “Korea Appraisal Board” or any other name similar thereto.
| Article 9 (Executive Officers and Employees) |
| (1) | The Appraisal Board shall have standing directors up to five, including one CEO and one Executive Vice President; non-standing directors up to six; and one Audit and Inspection Commissioner. |
| (2) | The CEO shall represent the Appraisal Board and exercise overall control over its business affairs. |
| (3) | The Audit and Inspection Commissioner shall audit the accounts and business affairs of the Appraisal Board. |
| (4) | The appointment and dismissal of employees of the Appraisal Board shall be made by the CEO in accordance with the articles of incorporation. |
| Article 10 (Appointment of Agent) |
The CEO may, in accordance with the articles of incorporation, select and appoint, from among its employees, an agent who has the authority to take any judicial or extra-judicial actions in connection with the business affairs of the Appraisal Board.
| Article 11 (Confidentiality) |
No former or current executive officer or employee of the Appraisal Board shall disclose or illegally use any confidential information that he or she learned in the course of performing his or her duties.
The Appraisal Board shall perform the following in order to achieve the purposes referred to in Article 1: | 2. | Survey of the trends in the real estate market, such as market transactions, price and rent, and management of the relevant statistics; |
| 3. | Any duties prescribed by Presidential Decree for the inspection and management of adequacy of the real estate market, such as support for inspection of real estate investment companies’ business affairs and inspection of validity of appraisal; |
| 4. | Support for Government policies, including verification and review of green buildings, and provision of information and advice on real estate pursuant to the Green Buildings Construction Support Act; |
| 5. | Any duties that may be performed by or entrusted to the Appraisal Board pursuant to other statutes or regulations; |
| 6. | R&D, education, training and public relations related to the duties referred to in subparagraphs 1 through 5; |
| 7. | Any other duties incidental to the duties specified in subparagraphs 1 through 6 and prescribed by Presidential Decree. |
| Article 13 (Investment and Loan) |
| (1) | The Appraisal Board may fully or partially invest its capital in any legal entity that performs the duties set forth in Article 12 or duties similar thereto (except for an appraisal business entity under the Act on Appraisal and Certified Appraisers). |
| (2) | The Appraisal Board may take out a loan to perform its duties upon approval from the Minister of the Land, Infrastructure and Transport. |
| (3) | The Government may grant the Appraisal Board a subsidy, within budgetary limits, to support its performance of the duties set forth in Article 12. |
| Article 14 (Profit and Loss Management) |
| (1) | The Appraisal Board shall use the profits remaining after settlement of accounts for each business year in the following order: |
| 1. | Make up for the losses brought forward; |
| 2. | Accumulate at least 10/100 of the profits as earned surplus reserve until it amounts to 1/2 of the capital; |
| 4. | Set aside the profits as reserve funds other than the earned surplus reserve set forth in subparagraph 2. |
| (2) | The Appraisal Board shall make up for any losses after account settlement for each business year with the reserve referred to in paragraph (1) 4; and if the reserve is insufficient, then with the earned surplus reserve referred to in paragraph (1) 2; and the remaining losses, if any, shall be carried forward to the next business year. |
| (3) | The earned surplus reserve referred to in paragraph (1) 2 may be transferred to the capital. |
| (4) | Any matters concerning the use of the reserve funds referred to in paragraph (1) 4 and matters concerning the transfer referred to in paragraph (3), other than the matters prescribed in paragraph (2), shall be prescribed by Presidential Decree. |
| Article 15 (Issuance of Bonds) |
| (1) | The Appraisal Board may, by a resolution of the board of directors, issue bonds worth the amount not exceeding twice the sum of the capital and reserve. |
| (2) | If the Appraisal Board issues bonds pursuant to paragraph (1), the Government may guarantee the repayment of the principal and interest accruing thereon. |
| (3) | In order for the Appraisal Board to issue bonds pursuant to paragraph (1), it shall formulate a bond issuance plan each year and obtain approval therefor from the Minister of Land, Infrastructure and Transport through a resolution by the board of directors. The same shall apply to any change to the approved plan. |
| Article 16 (Instruction and Supervision) |
| (1) | The Minister of Land, Infrastructure and Transport shall instruct and supervise the Appraisal Board regarding the following: |
| 1. | Any matters concerning proper performance of the duties prescribed in Article 12; |
| 2. | Any matters concerning performance of managerial directions; |
| 3. | Formulating a business plan and budgeting for each business year; |
| 4. | Business performance and account settlement for each business year; |
| 5. | Other matters prescribed by other statutes or regulations. |
| (2) | The Minister of Land, Infrastructure and Transport may, if deemed necessary, require a report from the Appraisal Board on the matters referred to in paragraph (1) or may instruct public officials under his or her command to enter the office of the Appraisal Board to inspect the books, documents, and other items. |
| (3) | The public officials entering the office pursuant to paragraph (2) shall carry an identification indicating their authority and show it to a related person. |
| (4) | If any matters are found to be illegal or unfair upon review of the report or inspection results prescribed in paragraph (2), the Minister of Land, Infrastructure and Transport may issue an order for corrective action. |
| Article 17 (Request for Materials) |
| (1) | The Appraisal Board may request related administrative agencies or other related persons for any materials deemed necessary to conduct its duties referred to in Article 12. |
| (2) | Any person who has received the request pursuant to paragraph (1) shall comply therewith in the absence of good cause. |
| Article 18 (Relationship to Other Statutes) |
| Article 19 (Penalty Provisions) |
Any person who has disclosed or illegally used any confidential information that he or she learned in the course of performing his or her duties in violation of Article 11 shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won.
| Article 20 (Legal Fiction as Public Officials in Application of Penalty Provisions) |
| Article 21 (Administrative Fines) |
| (1) | Any person who used the name “Korea Appraisal Board” or any other name similar thereto in violation of Article 8 shall be subject to an administrative fine not exceeding five million won. |
| (2) | Administrative fines under paragraph (1) shall be imposed and collected by the Ministry of Land, Infrastructure and Land. |
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on September 1, 2016.
Article 2 (Transitional Measures concerning Incorporation of the Appraisal Board)
| (1) | The previous Korea Appraisal Board Co., Ltd. shall effect the registration of incorporation under Article 7 within 14 days after this Act enters into force. |
| (2) | Upon completion of the registration of incorporation under paragraph (1), Korea Appraisal Board Co., Ltd. shall be deemed to have been dissolved, notwithstanding the provisions regarding dissolution and liquidation of stock companies as set forth in the Commercial Act. In such cases, the incorporation of the Appraisal Board shall be deemed the restructuring of corporation referred to in Article 78 of the Corporate Tax Act. |
| (3) | The Appraisal Board shall succeed to all rights, obligations, and property of Korea Appraisal Board Co., Ltd. in their entirety, upon completion of the registration of incorporation referred to in paragraph (1). In such cases, the value of the property subject to succession shall be the book value as of the day before the date of succession. |
| (4) | Korea Appraisal Board Co., Ltd.’s name on the register book and public register, as at the time of completion of the registration of incorporation under paragraph (1), shall be deemed the Appraisal Board’s name. |
| (5) | Any acts committed by or against the previous Korea Appraisal Board Co., Ltd., as at the time the registration of incorporation is complete pursuant to paragraph (1), shall be deemed the acts committed by or against the Appraisal Board. |
| (6) | The executive officers and employees of the previous Korea Appraisal Board Co., Ltd., as at the time the registration of incorporation is complete pursuant to paragraph (1), shall be deemed the executive officers and employees of the Appraisal Board; and a standing auditor from among the executive officers shall be deemed the Audit and Inspection Commissioner referred to in Article 9 (1): Provided, That the term of the office of the executive officers shall be the remaining term determined by the articles of incorporation. |
Article 3 (Transitional Measures concerning Appraisal Business)
Notwithstanding Article 12, the Appraisal Board may perform any duties, other than those referred to in Article 12, such as appraisal entrusted by August 31, 2016, even after the date this Act enters into force. In such cases, the Appraisal Board shall be deemed an appraisal corporation under the Act on Appraisal and Certified Appraisers only where the Appraisal Board conducts a task regarding appraisal and valuation. Article 4 (Relationship to Other Statutes or Regulations)
Where the previous Korea Appraisal Board Co., Ltd. is cited in other statutes or regulations as at the time this Act enters into force, the Appraisal Board shall be deemed to have been cited pursuant to this Act: Provided, That this shall not apply where other statutes or regulations provide that the Appraisal Board is allowed to perform appraisal and valuation.