Why appraisal cost and collateral capacity belong in one plan
A Korean secured-loan plan has two separate questions: what the appraisal assignment may cost, and how much lending capacity a resulting value may support.
The official remuneration schedule answers the first question by appraisal-value band.
The lender answers the second using its recognized value, product LTV, priority claims, room deduction, borrower review, DSR, and internal approval rules.
This calculator deliberately keeps those questions separate.
It applies the current Korean appraisal-fee table effective February 9, 2026 to produce lower, standard, and upper fee estimates.
It then applies only the recognition rate, LTV, priority deductions, and target loan entered by the user to downside, base, and upside appraisal scenarios.
Useful planning situations
- Budgeting an appraisal before a Korean home, shop, office, or land-backed loan.
- Testing additional capacity after an existing mortgage, tenant deposit, or another lender deduction.
- Checking whether a 5% or 10% lower appraisal would still support the desired new loan.
- Explaining why an official professional fee schedule is not the same thing as a lender approval formula.
Korea-specific jurisdiction note
This English page models a Korean appraisal remuneration schedule in KRW.
It is not an appraisal, a lender quotation, a credit decision, a legal priority analysis, or advice about another country.
Verified 2026 legal framework
Act Article 23
Article 23 of the Act on Appraisal and Certified Appraisers permits an appraisal corporation or appraiser to receive a service fee and necessary actual expenses.
It authorizes the Minister of Land, Infrastructure and Transport to determine the rate and expense scope and requires the parties to follow that standard.
The current source checked on August 7, 2026 is law ID 012481 and serial MST 250715.
MOLIT Announcement 2026-145
The current Standards for Remuneration of Appraisal Corporations, etc. took effect on February 9, 2026.
Its administrative-rule serial is 2100000274294.
Article 4 and the attached table set the value-band fee, Article 10 defines actual expenses, and Article 15 truncates the remuneration below KRW 1,000.
The automatic result covers an ordinary collateral assignment
Article 5 can apply a 150% special-appraisal surcharge to specified retrospective, specialist-structure, island, forest, litigation, and other difficult assignments.
A fractional-interest appraisal may use a separately agreed surcharge.
Article 6 repeat or grouped-appraisal discounts, Article 7 compensation-appraisal treatment, court or auction arrangements, and special professional work require a case-specific quotation and are not automated here.
Official lower, standard, and upper appraisal-fee schedule
All three levels are KRW 250,000 at or below KRW 50 million.
Above that threshold, each row starts from the attached-table base amount and adds the excess over its threshold at the stated marginal rate.
The marginal part uses 0.8 for the lower level, 1.0 for standard, and 1.2 for the upper level.
The next row uses its published starting amount rather than a rounded reconstruction from the preceding row.
Korean appraisal value bands, lower, standard, and upper starting fees, and marginal rates effective February 9, 2026| Appraisal value band | Lower start | Standard start | Upper start | Excess rate |
|---|
| Up to KRW 50 million | KRW 250,000 | KRW 250,000 | KRW 250,000 | Fixed |
| Over KRW 50 million to KRW 500 million | KRW 250,000 | KRW 250,000 | KRW 250,000 | 11/10,000 |
| Over KRW 500 million to KRW 1 billion | KRW 646,000 | KRW 745,000 | KRW 844,000 | 9/10,000 |
| Over KRW 1 billion to KRW 5 billion | KRW 1,006,000 | KRW 1,195,000 | KRW 1,384,000 | 8/10,000 |
| Over KRW 5 billion to KRW 10 billion | KRW 3,566,000 | KRW 4,395,000 | KRW 5,224,000 | 7/10,000 |
| Over KRW 10 billion to KRW 50 billion | KRW 6,366,000 | KRW 7,895,000 | KRW 9,424,000 | 6/10,000 |
| Over KRW 50 billion to KRW 100 billion | KRW 25,566,000 | KRW 31,895,000 | KRW 38,224,000 | 5/10,000 |
| Over KRW 100 billion to KRW 300 billion | KRW 45,566,000 | KRW 56,895,000 | KRW 68,224,000 | 4/10,000 |
| Over KRW 300 billion to KRW 600 billion | KRW 109,566,000 | KRW 136,895,000 | KRW 164,224,000 | 3/10,000 |
| Over KRW 600 billion to KRW 1 trillion | KRW 181,566,000 | KRW 226,895,000 | KRW 272,224,000 | 2/10,000 |
| Over KRW 1 trillion | KRW 245,566,000 | KRW 306,895,000 | KRW 368,224,000 | 1/10,000 |
KRW 1 billion worked fee example
At an appraisal value of exactly KRW 1,000,000,000, the lower fee is KRW 1,006,000, the standard fee is KRW 1,195,000, and the upper fee is KRW 1,384,000.
One building adds KRW 10,000 under Article 10, and this example adds KRW 100,000 of other confirmed outlays.
The standard supply price is therefore KRW 1,305,000, VAT is KRW 130,500, and the standard total is KRW 1,435,500.
From fee to cash budget: calculation order
- Select the appraisal-value band.
The upper boundary belongs to its row; a value above it moves to the next row.
- Calculate each official fee level.
Use the row base plus the excess amount multiplied by the marginal rate and the lower, standard, or upper factor.
- Add actual expenses.
Article 10 sets the building survey outlay at KRW 10,000 per building; enter quoted travel, official-document, photo, lease-check, translation, or confirmed special-work costs separately.
- Truncate below KRW 1,000.
The calculator combines the fee and entered outlays before applying the Article 15 truncation to the supply price.
- Add 10% VAT.
Value-Added Tax Act Article 30 sets the current 10% rate, and the Korea Association of Property Appraisers explains that VAT is added to remuneration consisting of the fee and actual expenses.
What every input means
Base expected appraisal
A planning value supplied by the user. It is not produced by this calculator and should come from a lender indication, comparable evidence, or another documented assumption.
Downside and upside changes
Stress percentages applied to the base value. Use a wider downside where comparable evidence is thin, income is volatile, or the property has unusual legal or physical characteristics.
Collateral recognition rate
The share of the appraisal that the lender is assumed to recognize for this planning model. Enter a lender-provided assumption rather than treating the default as a market rule.
Entered LTV
A user-entered loan-to-value rate applied to recognized collateral. It is not a universal Korean regulatory rate or a product approval.
Priority deductions
A planning total for senior debt, tenant deposits, room deductions, or other amounts the lender may subtract. Confirm the amount and order with the lender.
Other confirmed outlays
Quoted travel, document issuance, photography, lease checking, translation, or confirmed specialist work. Do not insert an unsupported market average.
How the collateral-value scenarios work
The calculator creates downside, base, and upside appraisal values from the entered change rates.
For each value, it multiplies by the recognition rate, applies the entered LTV, and then subtracts priority deductions.
A negative raw capacity is displayed as zero additional capacity while the warning remains visible.
Planning formula
- Recognized collateral = scenario appraisal × recognition rate.
- Gross LTV limit = recognized collateral × entered LTV.
- Additional capacity = maximum of zero and gross limit minus priority deductions.
- Target gap = additional capacity minus the desired new loan.
No universal lender formula is claimed
A Korean lender may use its own appraisal, a recognized market price, a public value, or the lowest of several measures.
It may apply regulatory screens, DSR, borrower income and credit, room deductions, senior claims, product caps, and purpose restrictions in a different order.
The output is a transparent scenario, not a promise of financing.
KRW 1 billion collateral scenario example
Assume a KRW 1,000,000,000 base appraisal, 10% downside and upside changes, a 90% recognition rate, a 70% entered LTV, KRW 150,000,000 of priority deductions, and a KRW 400,000,000 desired new loan.
Recognition multiplied by LTV produces an effective planning factor of 63%.
Downside, base, and upside collateral-value example for a KRW 1 billion base appraisal| Scenario | Appraisal | Recognized collateral | Gross LTV limit | Additional capacity | Target gap |
|---|
| Downside -10% | KRW 900,000,000 | KRW 810,000,000 | KRW 567,000,000 | KRW 417,000,000 | +KRW 17,000,000 |
| Base | KRW 1,000,000,000 | KRW 900,000,000 | KRW 630,000,000 | KRW 480,000,000 | +KRW 80,000,000 |
| Upside +10% | KRW 1,100,000,000 | KRW 990,000,000 | KRW 693,000,000 | KRW 543,000,000 | +KRW 143,000,000 |
The downside row still covers the KRW 400,000,000 target, but only by KRW 17,000,000.
A larger senior deduction, lower recognition rate, or lower approved LTV could eliminate that margin.
For a borrowing decision, the downside row is usually more informative than relying on the base row alone.
Practical uses and document checks
Additional secured borrowing
Check the registry, current loan statement, tenant schedule, and the lender deduction worksheet before combining senior amounts. A registered maximum secured amount and the outstanding debt are not automatically interchangeable.
Refinancing comparison
This page covers appraisal cost, not mortgage release and re-registration, early-repayment charges, stamp tax, legal-agent fees, or interest. Add those cash flows separately.
Commercial or land collateral
Use a wider downside where comparable transactions are sparse or income is uncertain. Review vacancy, lease deposits, land-use restrictions, access, and any specialist appraisal scope separately.
Multiple properties
Article 8 generally uses the combined value when one person requests several properties together, but separate loan cases are an express exception. Confirm the assignment unit before adding values.
Important limits before relying on the result
- No appraisal value is generated. If the entered base value is weak, both the fee band and collateral scenario will be weak.
- No special surcharge or discount is decided. The appraiser and client must confirm the assignment facts, applicable rate, and disclosure before work begins.
- Actual expenses are quote-dependent. Travel, records, photos, lease investigation, translation, and special professional work vary by property and scope.
- No loan approval is estimated. DSR, DTI, income, credit, interest rate, term, region, home count, loan purpose, and product limits are outside the model.
- No legal priority is determined. Registry rank, tenant protection, fixed dates, preferential repayment, and room deductions require document-specific review.
- VAT recovery is not decided. The cash estimate adds 10% VAT, but input-tax credit and accounting treatment require separate tax review.
Frequently asked questions
Is an appraisal at or below KRW 50 million only KRW 250,000?
The ordinary table fee is KRW 250,000 at all three levels, but actual expenses and 10% VAT are added. A special assignment or additional professional work can change the quote.
Is the lower fee always exactly 80% of the standard total?
No. The attached table gives a lower starting amount for each band and applies 0.8 to the marginal excess portion. The official band formula should be used instead of multiplying the final standard total by 80%.
Why does the calculator add VAT to actual expenses?
The official association guidance describes appraisal remuneration as the fee plus actual expenses and states that 10% VAT is added to that remuneration. The calculator truncates the combined supply price below KRW 1,000 before VAT.
Are the default 90% recognition rate and 70% LTV official 2026 rules?
No. They are editable examples used to explain the calculation flow. Replace them with assumptions confirmed for the actual lender, property, borrower, and loan purpose.
Should priority deductions use the registered secured maximum or current balance?
Ask the lender which amount its collateral review subtracts. This calculator accepts the entered total and does not determine the legally or contractually correct deduction.
Does the appraisal fee change in each value scenario?
Yes. Article 4 uses the appraisal amount for the fee calculation, so each downside, base, and upside value is run through the lower, standard, and upper official bands again.
Official sources and update boundary
- Act on Appraisal and Certified Appraisers Article 23, law ID 012481, MST 250715.
- Standards for Remuneration of Appraisal Corporations, etc., MOLIT Announcement 2026-145, administrative-rule serial 2100000274294, effective February 9, 2026.
- Articles 4, 8, 10, and 15 and the attached fee table for the band formula, assignment-unit boundary, actual expenses, and truncation.
- Value-Added Tax Act Article 30, law ID 001571, MST 276117, for the current 10% rate effective January 2, 2026.
- Korea Association of Property Appraisers business guide and fee calculator for the remuneration-plus-VAT calculation order.
These sources were checked through the Korean National Law Information OPEN API and official websites on August 7, 2026.
Recheck the administrative-rule serial, attached-table bands, expense rules, truncation, and VAT guidance whenever the notice changes.
Start with the downside case before requesting a quote or loan review
Enter the expected appraisal, lender-confirmed recognition and LTV assumptions, priority deductions, and quoted outlays to compare cash cost and collateral capacity together.
Then match each line against the appraiser quotation and lender worksheet before making a financing commitment.