Recently many developing countries have experienced rapid industrialization and urbanization along with driving their economic development plan. To accommodate speedy and smooth industrialization and urbanization, their governments have to conduct urban development and infrastructure installation projects. In the process of conducting these projects, they have to acquire land from private landowners. Thus they are preparing to introduce their own land acquisition and resettlement (LAR) system.
Many developing countries have showed their interests in Korean LAR system. Korea has achieved very speedy urbanization and industrialization and implemented massive-scaled urban development projects. This leads Korea to have prepared LAR system. As Korean economy has developed and society has turned to be more democratic, Korean LAR has been articulated. Korea becomes a good example for implementing LAR system. Korean experiences of try-and-errors may provide policy implication to those developing countries.
To accommodate the increasing demand for sharing Korean LAR system, KRIHS provided a report on Korean LAR to Asian Development Bank (ADB) in 2010, Legal and Regulatory Framework for Land Acquisition and Resettlement in the Republic of Korea. As a follow-up research, KRIHS provides a report to ADB in 2012, Legal and Regulatory Framework for Compensation Valuation in the Republic of Korea. It introduces Korean compensation valuation (CV) system to developing countries, which is prerequisite to implementing LAR measures. We expect this report will help many developing countries set their own CV system.
Finally, I would like to express my thanks to research team, who tried to draw meaningful research result. Hee-Nam Jung led this research team. Other researchers contributed for the report, who include Seon-Jong Yoo, Professor of Konkuk University, who provided the characteristics of CV and valuation verification system; Won-Bo Kim, CEO of Kaaram Appraisal Company, who provided sample case of CV in the real world; Kang-Moo Heo, Director of Research Coordination Division, Korea Real Estate Research Institute and Gyeong-Hwa Seo, Manager of Comprehensive Screen Department, Korea Appraisal Board, who reviewed the draft and gave valuable comments; Seong-Jin Park, Director of Land Policy Division, Ministry of Land, Transportation and Maritime Affairs (MLTM); and Gi-Seon Kim, Deputy Director of Land Policy Division, MLTM, who provided valuable raw data for CV and also provided valuable comments on the draft; and Ki-Yong Yoo, Certified Appraiser of Jungang Appraisal Company, who conducted translation of the report. Finally I thank to Chang-Won Lee, who draw tables and maps and Bo-Kyong Choi who managed many paper works for the project.

Preface ⅰ
Abstract ⅲ


Chapter 1Introduction 1

Chapter 2Legal System and Institutions for Compensation Valuation 5
1. Background of Korean Compensation Valuation 5
2. Legal System for Compensation Valuation 10
3. Organization for Compensation Valuation 14

Chapter 3Subject and Object of Compensation Valuation 17
1. Subject of Compensation Valuation 17
2. Objects of Compensation Valuation 21
3. Procedures of Compensation Valuation 23

Chapter 4Compensation Valuation and Publically Noticed Value of Real Estate System 25
1. Publically Noticed Value of Real Estate System 25
2. Survey and Valuation of Publically Noticed Value of Real Estate 30
3. Verification of Publically Noticed Value of Real Estate 36

Chapter 5Standard of Compensation Valuation 39
1. Valuation Procedure and Method 39
2. Compensation Valuation for Land 43
3. Compensation Valuation for Fixtures 53

Chapter 6Review and Verification System for Compensation Valuation 61
1. Internal Review within Appraisal Company 61
2. Outer Review and Verification within the KAPA 64
3. Final Review and Verification within Project Operator 66
4. Effect of Verification System for Compensation Valuation 68

Chapter 7Conclusion : Policy Implications of Korean Experiences 69
1. Comparative Analysis of Compensation Valuation Principles between ADB and Korea 69
2. Policy Implication of Korean Experience 77

References 87

Appendix 89
1. Examples of Compensation Valuation 90
2. Regional and Individual Factors in Valuation 113