Space Value, which operates the AI real estate finance service Piper, said on Wednesday it published the "South Korea Collateral Loan Rating Map (2026 1H)" report with Prime Appraisal, grading the recoverability of collateral loans for all condominium-type buildings nationwide into five tiers.

Space Value made public an online system on Piper Pro, a platform for financial institutions and real estate professionals, that allows users to look up Space Value by building and by unit.

The collateral rating is calculated using a machine learning model developed in-house, the company said. The model learns, by unit, location, use, area, floor, structure and scale, as well as market transaction trends and trends in auction filings and successful bids. It estimates the expected successful bid price ratio and expected successful bid period for each unit, then aggregates them at the building level. The coverage includes all condominium-type buildings nationwide for all uses that have a building register as of the reference date, including residential properties such as apartments, row houses and multi-family housing (including urban-life housing), as well as non-residential properties such as officetels, offices, lodging, factories (including knowledge industrial centers) and retail space.

After estimating the expected successful bid price ratio and expected successful bid period by unit, the company averaged them by building based on the building register's title section and classified collateral ratings from Grade 1 (excellent) to Grade 5 (caution) under the criteria in Table 1, it said.

Seong-sik Park (박성식), chief executive of Space Value, said, "What financial institutions really want to know in collateral loans is, when a default occurs, how much is recovered and how soon." He said the collateral rating map provides consistent nationwide criteria for condominium-type buildings such as retail space, knowledge industrial centers and lodging facilities, which have so far been assessed based on intuition.