​1. Reasons for Amendment

This amendment aims to reorganize appraisal-related concepts, procedures, and methods, and provide standards consistent with appraisal practice and supplement appraisal report writing standards in order to enhance the adequacy and reliability of appraisals and to improve and supplement the shortcomings of the current system, such as increasing the accuracy of the exclusion of development gains from the relevant public work stipulated in Article 67 (2) of the Act on Acquisition of and Compensation for Land for Public Works Projects for smooth execution of public works and realization of fair compensation.

2. Major Provisions

A. Improve case selection criteria, etc., when correcting other factors (610-1.5.2.5 and 610-1.5.4)

Clarify the criteria for selecting appropriate cases when correcting other factors and establish uniform standards for how significant figures are handled and displayed to secure the appropriateness of appraisals where appraising land based on the publicly announced price of representative land

B. Improve appraisal method for each item (400-3.4.1.4, 610-7, 660-3.1, and 670-3.3)

Apply appropriate methods other than the "market extraction method to obtain the capitalization rate when calculating it under the yield capitalization method and allow applying the "integration method," etc., in addition to the "lease case comparison method" when evaluating rent in order to fit for the field practice; enhance the coherence between the external valuation field and the corporate value concept by adding the asset value concept to the corporate valuation; set detailed standards such as adding the input cost aggregation method in the appraisal of a suspended building, etc.

C. Appraisal for compensation (810-5.6.6)

Review price changes resulting from the implementation of a relevant project and specify the exclusion of development gains for the smooth execution of public works and the realization of fair compensation