Dear Sir/Madam, Apologies first of all for this message being in English, unfortunately we have no translation facilities however I hope you can please assist us. I would appreciate if the KHFC could assist me with some research I am undertaking on the use of Automated Valuation Models that may be used by the mortgage lending industry in KOREA. The UK Council of Mortgage Lenders is the trade association for the UK mortgage lending industry. It has commissioned us at Northumbria University to research the use of Automated Valuation Models (AVMs) worldwide. AVMs are software systems which provide instant valuations of residential properties, either individually or in portfolios, using a database of transactions. We are investigating: The extent to which AVMs are used in each country for residential mortgages and remortgages The factors encouraging or restricting their use Regulations on their use Developments and innovations in their use. We are contacting you because the KHFC may be using or intending to use AVMs as part of their mortgage lending process in KOREA. Therefore it would be very helpful if you could answer the following questions, by replying to this e-mail please: · Are AVMs being used for property secured lending by you in KOREA? · If so, is this use widespread or limited ? · Can you suggest any person in your own or other organisations who we can contact to discover more detail? · Can you suggest any publications about AVM use? I do hope you will be able to help with this research: the Council of Mortgage Lenders expects to publish the results later this year and we trust they will be of interest to you. If you would like to speak to us, please telephone, George Dobson, +44 (0) 191 2273063, or Mary Lou Downie on +44(0)191 227 4938 or Gill Robson on +44(0)191 243 7283. . Regards, George Dobson Northumbria University, Newcastle upon Tyne

Dear George Dobson, This is Kyung-In Min, assistant manager of e-mortgage team, in Korea Housing Finance Corporation. We apologize for this reply being a little bit late. AVM is not being used in estimating collateral value of KHFC eligible mortgages. Instead, we use price database provided by "Kookmin Bank"(www.kbstar.com) or "Korea Appraisal Board"(www.kab.co.kr). "Kookmin Bank" regularly publishes the price of apartment house nationwide on its website, which is surveyed by affiliated real estate agents. "Korea Appraisal Board",which is a government-sponsored institution, carries out property valuation, and "KAB(Korea Appraisal Board) Real Estate Research Institute"(http://www.kab.co.kr/ret/research/index.jsp * e-mail address : k01792@kab.co.kr) is doing the research on the topic in which you are interested. So, we suggest that you contact "KAB Real Estate Research Institute" to get information or materials regarding AVM use in Korea. We are sorry again that we are not much help to you, and we do hope you get a good result. Please let us know if there are other things that we can help you with. Regards, Kyung-In Min Securitization Development Department e-mortgage Team Assistant Manager Korea Housing Finance Corporation YTN B/D 12F 6-1, Namdaemunro 5ga, Jung-gu, Seoul, Korea, 100-800