CEO Message

XAI Land was founded to make what is most fundamental – yet most difficult to achieve – a reality in the South Korean real estate market: accuracy and transparency.

As the country’s real estate and financial systems evolve, expectations placed on valuation and appraisals have changed. Market participants no longer accept simple estimates. They demand valuation frameworks that are measurable, explainable, and structurally trustworthy.

Valuation today influences far more than transaction pricing.

It shapes credit allocation, capital reserves, risk management, public housing policy, and ultimately financial stability.

In this environment, the question is no longer only “How accurate is the number?”

It is also “How is that number produced, validated, and governed?”

Valuation as Financial Infrastructure

We believe real estate valuation is not merely a service – it is infrastructure.

When valuation functions are structurally intertwined with lending decisions, sales incentives, or supervisory authority, even the perception of conflict can weaken public trust. History across global financial systems has shown that valuation independence is not an abstract principle; it is a safeguard against systemic risk.

Recent public discussions in South Korea regarding internal appraisal practices, valuation standards, and regulatory interpretation underscore an important reality: governance matters as much as technology.

Technical sophistication alone cannot ensure stability.

Institutional structure and independence must accompany it.

XAI Land believes valuation should operate as a neutral reference layer within the financial ecosystem – institutionally independent, transparently validated, and technically auditable.

A Market in Transition

Over the past several years, South Korea’s real estate valuation environment has entered a period of structural transition.

Public debate has increasingly focused on the governance of valuation systems – particularly the importance of clearly separating valuation from lending incentives, market influence, and supervisory roles. What was once viewed as a technical issue is now recognized as a matter of financial integrity and consumer protection.

Recent developments in Korea’s housing guarantee and appraisal systems further illustrate how valuation standards directly affect market stability and household security.

In the context of strengthened housing guarantee policies, debates have emerged regarding appraisal methodology, valuation purpose (collateral-based versus market-reference), review timelines, and institutional designation processes. In some segments of the market – particularly non-apartment housing and youth rental programs – valuation outcomes have materially influenced guarantee eligibility and financial continuity.

These discussions highlight a broader structural reality: valuation frameworks do not merely reflect markets – they shape them.

When standards are overly discretionary, inconsistently applied, or institutionally intertwined, unintended consequences can arise. Conversely, when valuation systems are transparent, statistically grounded, and independently governed, they reduce both inflationary and deflationary distortions.

The goal is not simply stricter policy or faster execution. It is structural clarity.

This shift reflects a broader realization: in an AI-driven market, the rules that govern valuation and appraisals may matter as much as the models themselves.

Since our founding, XAI Land has consistently advocated for measurable accuracy disclosure, independent validation standards, and structural safeguards against conflicts of interest.

Through research publications, academic collaboration, and policy dialogue, we have sought to contribute to a framework in which valuation operates transparently and independently within the financial system.

We view this moment not as controversy, but as opportunity – an opportunity to establish clear, durable standards that strengthen trust across the entire country’s real estate and financial markets.

A Different Approach

Many organizations today speak of “AI pricing” and “AVMs,” yet few disclose the statistical foundations, validation frameworks, and governance structures that make such systems trustworthy such as model accuracy, testing methodology, sample size, error distribution, and structural conflicts of interest.

• Opacity creates uncertainty.
• Uncertainty creates distrust.
• Distrust amplifies systemic risk.

XAI Land takes a different approach.

Our models are designed not only for technical accuracy, but for measurable accountability and broad market coverage.

Unlike valuation systems that focus primarily on high-liquidity apartment segments, our AVM extends across villas, multi-family housing, and regional residential assets – segments that have historically faced limited valuation transparency and reduced financial access.

We publicly disclose accuracy metrics across regions and housing types, allowing institutional users to understand both model strengths and areas requiring caution.

To further strengthen risk management, we integrate:

• Confidence Grading, enabling financial institutions to determine whether a valuation may be relied upon directly or requires supplemental review
• Explainable AI (SHAP-based attribution), clarifying which factors influenced each property’s valuation outcome
• Segment-level validation reporting, improving transparency across asset classes

Our goal is not merely to produce numbers, but to provide valuation infrastructure that institutions can responsibly deploy including in segments where traditional systems have offered limited coverage or visibility.

Institutional Responsibility & Policy Engagement

Following the global financial crisis, many advanced economies strengthened safeguards to preserve appraisal independence and reduce conflicts of interest in mortgage markets. The lesson was clear: durable financial systems require separation of roles, procedural fairness, and transparent validation standards.

Korea now stands at an important inflection point in the evolution of AI-driven valuation systems.

For this reason, XAI Land actively shares research, participates in academic collaboration, and contributes to policy dialogue focused on:

• Measurable accuracy standards
• Independent validation frameworks
• Conflict-of-interest safeguards
• Transparent model governance

Our purpose is not to replace existing institutions, nor to criticize them.

Rather, we aim to contribute to a valuation environment where roles are clearly defined, standards are measurable, and trust is structurally embedded.

Building the Standard

We believe Korea has a rare opportunity to design AVM and valuation/appraisal standards correctly at an early stage by incorporating statistical disclosure, independent oversight principles, and institutional conflict of interest safeguards from the outset.

XAI Land aspires to contribute to the standardization of accuracy, transparency, and validation benchmarks for Korean valuations and appraisals by helping establish infrastructure that financial institutions, regulators, public agencies, and citizens can rely upon with confidence.

Our vision is long-term.

To serve not simply as a technology vendor, but as a nationally trusted, infrastructure-level valuation technology company.

To quietly and rigorously improve the systems that underpin credit, housing policy, and financial trust.

And to ensure that real estate valuation in Korea is not only intelligent, but independent, transparent, defensible and worthy of the public trust.