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2009, Vol.19, No.2

  • 1.

    A Study on Unification of Public Disclosure Systems of Real Estate

    이선영 | 2009, 19(2) | pp.9~41 | number of Cited : 4
    Public disclosure systems of real estate can be classified as of the land register, the building, the right relation, the market price and appraised value of real estate, etc. There are three institutions for a public disclosure of real estate, i.e. a state, a local government, and a court of justice. As the method of the public disclosure is various, such as registering or enrolling it in the official books and gazettes, people's legal life is inconvenient and the economic cost is heavy. Such being the case, unification of public disclosure systems of real estate is necessary. Even though there have been continuous discussions about unification of public disclosure systems of real estate (focused on the unification of the real estate book and the real estate register) in the academic world, no improvements were made. In this study, the improvement plans are suggested by systematizing the situations of public disclosure systems of real estate that have been discussed in the meantime, and also research topics about the public disclosure system of the market price and appraised value of real estate which has taken effect since June 2006 are covered. Especially it is said that though the civil law defines 'land and its fixture are one real estate', to treat the land and building as separate real estate is because those right relations are disclosed respectively in the real estate register without unification of the cadastre and the building book. For the unification of public disclosure systems of real estate, the cadastre and the building book must be unified into the real estate book. And then this real estate book must be unified with the real estate register of a court of justice. And through revising the civil law, it is needed to establish new basis clause of a substantial law for the registration of the market price of real estate and the right of land value use. If the market prices and the declared value of real estate are registered in the section of real estate register that is newly made through revising the real estate registry law, the unification of public disclosure systems and the systematic administration of real estate will be accomplished.
  • 2.

    Raising the Professionalism of Real Estate Appraisers for ensuring the Stable development of the Real Estate Assessment System - Lessons learned from the Licensing and Certification System of Real Estate Appraisers in the U.S.-

    Su Yeon Jung | 2009, 19(2) | pp.43~71 | number of Cited : 3
    Accurate real estate appraisals are a pre-requisite for a stable real estate assessment system, and accurate appraisals depend on the professional skill of the appraisers themselves. In the Korean real estate market, there have been long-standing issues regarding the trustworthiness of appraisals, thereby weakening one of the foundations of the real estate assessment system. Most policies seeking to address this problem have focused on the ethics of appraisers rather than on raising their level of professional expertise. Proposals for raising the professionalism of real estate appraisers generally concentrate on appraiser education. However, merely improving education cannot guarantee the stability of the real estate assessment system. The “Real Estate Assessment System for Non-Residential Real-Estate” will soon be introduced, making it more important than ever to establish a system for strengthening the professional aptitude of appraisers. This paper proposes the establishment of a body for licensing, certification, and assessing the professional competence of real estate appraisers as a suitable measure for actively improving their professional expertise. This paper cites recent examples from the U.S., which has strict licensing requirements for real estate appraisers, and considers lessons that the Korean real estate assessment system can learn from the U.S.
  • 3.

    A Study on Unification of Public Disclosure Systems of Real Estate

    kyungkyu seo | Lee,Seong-Keun | 김종수 | 2009, 19(2) | pp.73~93 | number of Cited : 4
    Business compensation has been a lack of interest because of lower proportion of compensation and fewer compensation objects than corporeal properties such as land and buildings. As a result, it is needed to improve business compensation system. The purpose of this study is to find out the problems of requirements for business compensation, furthermore to present rational methods to improve current system. The results of the study are as follows : First, in general requirements, it is needed to complement the special articles of place requirement, to include nonprofit enterprise as compensation object and to add business registration as one of compensation requirements. Secondly, in individual requirements, the requirements for closure compensation of business should be defined concretely. Closed compensation of business should be given on the basis of closed business. Requirements for indirect compensation should be complemented. Finally, the conflicts between the main contractors and the rightful persons of compensation need to be resolved quickly by the local expropriation committee.
  • 4.

    A Study on the Exclusion of Development Gains in the Public Project Compensation

    서창근 | Soon-Tak Suh | 2009, 19(2) | pp.95~114 | number of Cited : 0
    Article 23 of the Constitution guarantees the right of property, and the article 23 states that expropriation, use, or restriction of private property from public necessity and compensation are governed by law but just compensation must be paid. The amount of compensation is estimated by making other adjustments on compensation precedents in the neighborhood, making adjustment of time, location, and physical factors on the GALP (Government announced land price) of the benchmark site, as of prior date to the recognition notice date of the public project. Therefore, the exclusion of betterment may depend on how to calculate time GALP applied to, time adjustment, and other factors. According to the「Act on the Acquisition of Land, etc. for Public Works and the Compensation Therefore」the time of compensation estimate is assumed as the recognition date of the public project. If the date of zoning-designation is assumed as the recognition date, the exclusion of betterment seems to be executed in theory. However, in practical the GALP eventually includes betterment since the land prices in the accommodated district have elevated and speculation has been terrible as the public project has leaked out from much earlier than the date of zoning-designation. Consequently, it is necessary that the GALP announced one-year earlier than the date of zoning-designation is applied to estimate of the compensation for more positive exclusion of betterment. Next, making time adjustment has two methods, to apply the GALP and PPI (Producer price index). Again, time adjustment by the GALP has two methods, to use the benchmark in neighboring 'Si' and 'Gun' and to use the average rate of land inflation nationwide, but the latter method is adequate for more positive exclusion of betterment. Time adjustment for estimating other adjustments by compensation precedents in the neighborhood is based on the average rate of land inflation nationwide, and applying actual transaction prices by Real Estate Transactions Reporting System; then, exclusion of betterment and propriety of the amount of compensation will be further promoted. Betterment should be excluded but dissatisfaction on compensation of the accommodated will become high. This is because prices of lands neighboring the project will highly increase and owners of lands neighboring can be privatized unearned incomes from it. It is necessary to seek a means to redeem development profits of neighborhood so as to promote fairness between the accommodated and owners of neighboring lands and to settle excessive compensation.
  • 5.

    A Study on the Effectiveness of the Right-to-Request a Sale for the Housing Construction Project

    신동준 | Jeong Keun Ahn | 2009, 19(2) | pp.115~132 | number of Cited : 2
    A new procedure was adopted in 2005, which gives ‘the right-to-request a sale’ to developers, with the aim of stabilizing land prices, putting a break on the rampantly rising housing and land prices in and around new housing development projects, and stopping the speculative and fraudulent practice, called ‘Albakki’ in Korea, of purchasing one or more parcels of land on a project site just before the project getting underway and selling them back to the developer at much higher prices. The analysis to find out how much effective this right=to-request a sale has been, using data gathered from private housing developers who have exercised their rights since the procedure took effect, shows that it did prevent the practice to a great degree. However, this device, in current form, fell short in curbing rampant land prices of newly-built housing units despite of the adoption of new procedure. This kind of device, good in intent, but ineffective in practice, needs major revision. With no incentive in place for landowners to back down from asking unreasonably high prices, land compensation process goes up and negotiations tend to drag on putting pressure on developers to choose to forgo exercising their rights altogether.
  • 6.

    Range of Betterment Recapture in Housing Reconstruction

    yim yoon-soo | 최완호 | 2009, 19(2) | pp.133~150 | number of Cited : 3
    As the Lee Myung-bak administration came into power in February of 2008, it was predicted that there would be a number shifts in housing supply amid expectations of great change. The present government revealed even prior to taking the helm of government that it would be a desirable policy direction to supply housing by redevelopment and reconstruction in downtown areas rather than by developing new cities. The past participatory government, diagnosed that the low-interest policy made a lot of funds flow into reconstruction projects and sent the price of reconstruction apartments skyrocketing, raising prices of apartments as a whole in Seoul and the capital region. The government announced several measures for reconstruction projects to stabilize the prices of such apartments, the core of which is the reconstruction excess gains recapture system which has been in effect since September 25, 2009. This study is aimed at approaching the public concept of housing which forms the basis for the policy which can be collectively called ‘real estate regulations’ such as institutional restrictions through restrictions on property rights, taxes with respect to the housing market from the perspective of law and economics and especially, shedding light on the concept of unearned income and development profits from the standpoint of value theory.
  • 7.

    Comparing Wealth Effects: House and Equity

    Lee, Young Soo | 2009, 19(2) | pp.151~174 | number of Cited : 5
    This paper examines wealth effects of housing prices and equity prices on consumption, using consumption equation models in Case et al.(2005) and a SVAR model in Chirinko et al.(2004). The empirical results from Korean data are compared with those of above two papers. Three key findings are as follows: Firstly, housing shocks have a much greater impact than equity shocks. This phenomenon can be found in the two papers. Secondly, effects of housing shocks last longer than effects of equity shocks. Thirdly, wealth effects of housing prices are conspicuously large in Korean data.
  • 8.

    A Study of Project Financing for Housing Development in Korea

    윤혜정 | 2009, 19(2) | pp.175~190 | number of Cited : 11
    The purpose of this study is defining the limits and problems of housing development financing system through 6 project cases. The results are 1) the rate of loan was too high(85~90%). 2) Feasibility studies were inaccurate. 3) the interest rate are generally set additional rate. 4) According the regulatory process was delayed, the amounts of capital increased. 5) most of all required rate of return on investment did not realize. Finally, we need to develop the proof methods of project's feasibility, to improve PF system and to adjust guarantee of an obligation. Also the land development companies should consolidate to capacity of finance and management.
  • 9.

    A Study on the Fair Value Measurements and the Introduction of Fair-Value Measurement Experts in Korea

    고승의 | 2009, 19(2) | pp.191~216 | number of Cited : 4
    This study examines the history of the fair value accounting development which was initiated by IASB and FASB for the last decade. The study identifies that fair value is preferable to historical costs in terms of the relevance which is the criterion to determine the usefulness of accounting information for economic decision making while revealing some vulnerability in the reliability of accounting information. Particularly, the study suggests that the comprehensive adoptions of fair value accounting in the financial institutions should be very prudent because fair value accounting may magnify income volatility thereby exacerbating financial risk during the period of economic downturns. Finally, the study suggests that it is urgent to develop fair value measurements guidance in inactive markets and to train fair-value measurement experts before the full adoption of IFRS in 2011 by Korea.
  • 10.

    A Study on the Asset Revaluation's problems in the introduction of IFRS

    Yoon, Dong gun | 2009, 19(2) | pp.217~235 | number of Cited : 8
    IFRS are scheduled to be fully adopted in korea from 2011. According to the IFRS, an entity shall choose cost model or revaluation model based on fair value measurement to an entire class of property, plant and equipment. The companies may account for the fair value on the property, plant and equipment, intangible assets and investments as well as financial instruments. One of the primary characteristics of IFRS is that the asset can be appraised by fair value. Appraisers should make preparations on how to measure the fair value and what to do in the introduction of IFRS. This study focused on suggesting improvements of asset revaluation's problems in the introduction of IFRS. In chapter 2, we explain the background and main contents of IFRS. Also we explain the concept of fair value, revaluation model described in IFRS. In chapter 3, we analyze the results of the asset revaluation operation for the last 40 years. In chapter 4, we propose improvements of the asset revaluation's problems in the introduction of IFRS. Firstly, we suggest a logical basis for appraisers to take part in the fair value appraisal market. Secondly, we present the current fair value standards which enable appraisers to apply to practical affairs. We suggest some actions that appraiser should carry out in order to gain pubic support and confidence regarding the assaet revaluation.
  • 11.

    A Study of the Selection Factor and Satisfaction Level for Real Estate Transaction Information Network

    채현길 | YoungKi Moon | Jinhyeong Seo | 2009, 19(2) | pp.237~257 | number of Cited : 10
    This study has analyzed factors influencing the selection of a transaction information network by a real estate agent and the level of satisfaction about such a network. Among the variables relating to the selection factors, item registration and search capability were recognized as most important in terms of user convenience. In regard to quality of information, registration of accurate information on real estates for sale was shown to be most important. In respect to the contents, convenience of provision of the contract management program was recognized to be most significant. In terms of economic feasibility, the appropriateness of user price was seen to be most vital. Further, in regard to interaction, the ability to use readily joint brokerage was recognized as most important. The level of influence exerted upon satisfaction level during use of a transaction information network was determined, according to their order of importance, by interaction, contents, user convenience, economic feasibility, and quality of information. Comprehensively, if the transaction information network is to be invigorated, the reliability of real estate information must be enhanced by ensuring the accuracy of information on the real estate that is on sale and which is registered on the transaction information network and by strictly managing genuine real estates for sale. Moreover, the transaction information network will be invigorated if only contracts are successfully concluded for a real estate transaction by promoting the community of agencies so that joint brokerage is revitalized.
  • 12.

    Inter-Temporal Comparison of the Characteristics and Backgrounds of Unsold Housings

    HurJaeWan | 김은경 | 2009, 19(2) | pp.259~278 | number of Cited : 13
    The main purpose of the paper is to make an inter-temporal comparison of the characteristics and backgrounds of unsold housings. For this it is assumed that unsold housings were happened three times after 1990s. And then the paper attempted to investigate the questions of whether there exists any differences or similarities among the three different periods of unsold housings. Some interesting findings are as follow: First, the pattern of unsold housings are different by region. In particular, the unsold housings problem in the Non-Capital Region is getting worse due to its high housing supply ratio as well as regional policy towards balanced regional development. Second, the average size of unsold housing units has become bigger and bigger since most of housing companies has focused on building the middle-size and large-size apartments to enjoy higher profits after abolishing the government's regulation on the size of housing units. Third, the unsold housings supplied by the private sector have continuously increased partly because the public sector has concentrated in constructing rental housings during the same period, and partly because the number of housing companies has sharply increased during the booming period.
  • 13.

    Spatial Patterns of Retail Stores in Seoul, Korea

    SHIN WOOJIN | 신우화 | 2009, 19(2) | pp.279~296 | number of Cited : 24
    Location, Location, and Location! As all real entities tend to seek specific locations so the spatial relationships among similar or different real estates are important to understand real estate market trends. This study tried to identify the spatial relations of 49 types of retail stores in Seoul applying spatial autocorrelation methods - Getis-Ord G and Gi*. Three objectives were to 1) explain a spatial autocorrelation methods - Getis-Ord G and Gi*; 2) identify retail types which have a tendency to cluster throughout the city of Seoul; and 3) illustrate highly clustered spots of each retail types in Seoul, Korea and try to explain possibility of relations between cluster tendency of retail types and the spatial structure of Seoul. Results showed that 21 out of 49 retail types were highly clustered on specific spots in Seoul. Among them, ten commuter-oriented retail types(e.g. Japanese Restaurant, Cafe, Chained Mart, etc) were mainly clustered in downtown and subcenters, and seven dweller-oriented retail types(e.g. Electronic Gameroom, Infant Goods, Health Goods, etc) were clustered around the inner-ring suburbs in Seoul. Four retail types(e.g. Traditional Clothes, Study Rooms, Used Furniture, etc) were clustered in specific areas in Seoul, such as JongRo-3Ga, BongChon-Dong, and SaDang-Dong.
  • 14.

    Demand Function of Golf course: An application of Spatial Econometrics Model

    김성제 | Kim, Misuk | 최상희 and 1other persons | 2009, 19(2) | pp.297~311 | number of Cited : 4
    It is a crucial process to conduct feasibility study on regional development projects requiring huge investment fund, and to estimate the economic impact of such projects in order to know how much the regional development projects impact the activation of regional economies. This paper made a case study on the active regional construction projects for golf course facilities nationwide in an effort to offer a demand function estimation method. Unlike previous researches, to include the competitive and complementary relationships among golf courses across the nation, this study used MLE(Maximum Likelihood Estimation) to determine general spatial models including a spatial weighted matrix. The analysis findings are outlined as follows. The demand for the tourist leisure facilities (golf courses), i.e., the number of visitors is deemed to be influenced mainly by such golf courses’ location (whether located in the Seoul metropolitan area or not) and their size and subsidiary facilities, and the number of regional employees, among other factors. Of golf course operation-types, a simultaneous operation of a public golf course was found to negatively affect the number of visitors. It was confirmed that the demand function by facility examined herein could be used as a model to estimate not only an objective demand, but also the related regional characteristics and factors influencing a business plan.
  • 15.

    The Relationship Between REITs and Financial Markets: Evidence from Korean CR-REITs

    Kim, Bum-Suk | 2009, 19(2) | pp.313~338 | number of Cited : 2
    Abstract PDF
    This paper examines the relationship between Korean REITs and stock/bond markets. CR-REITs differ from ordinary trust structurein terms of limited operating period and its portfolio of assets. The CR-REITs should invest only in the specified real estates. The life span of CR-REITs is limited.This study tests whether CR-REITs – KOCREF I, REALTY, MERITZ, KOCREF III, and MACQUARIE - have similar characteristics to common stocks/bond or not, using the co-integration analysis and error correction model.The empirical tests show that, for the bivariate cointegration, there is no cointegrating vector between REITs and stock/bond marketsexcept for MERITZ-construction sector index. However, for the multivariate cointegration, at least more than one cointegrating vectors for each CR-REITs are found. The error correction models show that, for MERITZ, and KOCREF III, there is a long-term equilibrium relationship. For REALTY and MACQUARIE, however, there is not a long-term relationship. And in two of CR-REITs, a short-term lead/lag relationship with bond markets is found. The relationship between REITs and financial markets may depend on characteristics of REITs. In addition, the evidence found in this paper suggests that REITs provide a useful way to diversify portfolio.