KAB Strives to Be
More Competitive

President Chang says the housing grading system
will have a favorable impact on the housing supply market

Korea Appraisal Board President Chang Dong-kyu says his board is striving to evolve into a real estate service institution designed not only to pursue revenue through competition with private appraisal companies, but also to promote public interests.
KAB President Chang made the remark on the occasion of the 27th anniversary of its founding while explaining this year's management policies focusing on substantial management so that the value of customers, corporations and the social community can be raised.
Chang, who took office at the chief of KAB last year, said he attached policy priority on establishing innovative work process and raising customer satisfaction during his first year at the helm of the public corporation.
Some have argued that KAB would find it difficult to post black figures when it takes on private appraisal companies which try to dominate the market through such measures as consolidation.
KAB President Chang disagrees with it, saying that private appraisal companies'move to make them bigger would contribute to raise KAB's edge. His judgment is that KAB has so far suffered such disadvantages as KAB's virtual blockage of business activities as a public organization, but KAB is able to compete on an equal footing with private appraisal companies who are required to abide by more stringent auditing to ensure transparent management as their companywide size is getting bigger.
Chang said compensation assessments account for some 6 percent of KAB's total work and private appraisal companies cannot outrun KAB in terms of service quality.
KAB has been designated as a housing grading certification institute this year, so a 12-member housing assessment center has been established. He said his board was considering expanding the center in anticipation of a rise in its workload as a housing complexes with more than 1,000 units are required to undergo housing grading starting next year. Currently, there is not much work regarding housing grading because housing complexes with more than 2,000 units are mandatory, said the KAB President, adding that many construction contractors are shunning to undergo housing grading, but the system will have a favorable impact on the housing supply market under a long-term perspective. The reason is that once housing complexes are assessed to be high-quality, it could calm down controversies regarding too expensive selling of units and contractors'profit.
Now that such environmental rights as daylight and viewing rights become a matter of mounting concern, he said, KAB plans to expand real estate consulting and urban refurbishing business sectors. nw

Korea Appraisal Board President Chang Dong-kyu