South Korea's Ministry of Science and ICT and Gyeonggi Province have unveiled a service that uses AI to diagnose real estate transaction risks in advance.

The ministry and the province on Monday held a launch event for Gyeonggi Reassuring Real Estate (GRT). The service combines AI-based data analysis with on-site checks by licensed real estate agents to help address risk factors that may arise during jeonse lease contracts.

Before a contract, it uses AI to analyse data including registry documents and market prices to diagnose a property's rights relationships and risk factors and provides the results of the rights analysis. During a contract, it uses speech recognition to analyse explanations given in the signing process and checks whether the licensed agent properly guided the key points that must be explained. It also analyses key contract terms to identify items that are missing or need to be supplemented.

After a contract, it monitors registry changes 24 hours a day. If changes occur in key rights relationships, including the establishment of a mortgage, it alerts the tenant to signs of abnormalities.

It also applies an "on-site integrated cross-verification" approach that combines AI analysis results with on-site checks by licensed agents. This is to identify risk factors that are difficult to determine through documents or data alone. Tenants can receive the agent's rights analysis results free of charge. They can also ask additional questions and receive answers about the analysis results through an AI chatbot. The service continues to reflect registry changes even after the rights analysis results are issued.

The ministry and the province will begin a pilot run of the service from next month. Anyone involved in real estate transactions in Gyeonggi Province can use it, and during the pilot it will be operated mainly through about 15,000 licensed agents participating in the Gyeonggi Safe Jeonse Project. The project is an initiative led jointly by Gyeonggi Province and licensed agents to prevent risks in jeonse transactions, including jeonse fraud.

Ryu Je-myeong (류제명), second vice minister of the Ministry of Science and ICT, said, "Gyeonggi Reassuring Real Estate is a service that combines AI-based data analysis with on-site checks by licensed agents to help detect and prevent jeonse fraud risks in advance." He added, "We will support efforts so that AI can be used to solve various problems people actually experience and improve their lives."