Prosecutors Decide Not to Indict BigValue for Providing Real Estate Price Information

Prosecution: "BigValue's Business Activities Hard to Consider as 'Appraisal Services' Under the Law"
Prosecutors' Citizen Committee Convened, Final Non-Prosecution Decision After Review

On the 14th, when the prosecution summoned former Minister of Justice Cho Kuk for investigation, reporters gathered at the entrance of the Seoul Central District Prosecutors' Office in Seocho-gu, Seoul. It is reported that former Minister Cho headed to the investigation room using a different private passage instead of the first-floor entrance of the prosecution office where the press was waiting. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Heo Kyung-jun] The prosecution has decided not to indict the corporation 'BigValue' and its CEO, who have been providing real estate price information using big data and artificial intelligence algorithms.

The Criminal Division 6 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kang Beom-gu) announced on the 28th that it has decided not to indict BigValue and its CEO, who were accused of violating the Real Estate Appraisal Act.

Since 2019, BigValue has been using its own real estate price evaluation program to database price information of multi-family and row houses in the metropolitan area and has been providing this information to financial institutions for a certain fee.

In response, the Korea Association of Property Appraisers reported BigValue to the prosecution, claiming that BigValue, which is not registered as a real estate appraisal corporation, was violating the Real Estate Appraisal Act by conducting such business.

The prosecution judged that BigValue's business activities are difficult to be regarded as real estate appraisal business under the law. According to current law, real estate appraisal business must be conducted as a profession by appraising land, etc., for others upon request and for a certain fee, but BigValue did not meet the condition of 'upon request.'

The prosecution also determined that the suspects had no awareness of illegality. The reason for the decision of no indictment was that when the Financial Services Commission designated BigValue as an innovative financial service in June 2019, it recognized the legality of the current service provision method based on the Ministry of Land, Infrastructure and Transport's response.

Considering these points, the prosecution convened a prosecution citizen committee for deliberation and made the final decision of non-indictment.

This content was produced with the assistance of AI translation services.