Proposed Amendment to Real Estate Development Business Act of Korea: Rating of Real Estate Development Projects

In an attempt to avoid additional failures in the Korean real estate market, the Korean government at the end of July 2013, proposed revisions to the  Real Estate Development Business Act of Korea.

The revisions would, inter alia,:

1.  Give authority to the Ministry of Land, Infrastructure and Transport (“MLIT”) to select a agency of real estate experts (“Agency of Experts”) to verify private ratings.  The specifics of this Agency of Experts scheme would be designated by a President Decree.  The purpose of the revision is to have an analysis by a true “neutral.”  As in most cases, the devil may be in the details. 

2. Officially recognize the practice of the MLIT of delegating responsibilities to local Korean governments.  These delegated responsibilities include issuing real estate registration certificates.

We will update the reader if the law passes. 
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Sean Hayes may be contacted at: SeanHayes@ipglegal.com.

Sean Hayes is co-chair of the Korea Practice Team and Entertainment Law Team at IPG Legal. He is first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty.