Realtors Association Criticizes Lee's Pledge for Real Estate Supervisory Agency: "Ineffective in Preventing Incidents Before They Occur"

Press Briefing Held Ahead of Legal Status on August 28
"Self-Regulatory Function of the Association Will Be More Effective"
Vision Unveiled to Strengthen Protection of Citizens' Property Rights

Marking its 40th anniversary this year, the Korea Association of Realtors unveiled its vision on August 28 to reinforce the self-regulatory capacity of the real estate brokerage industry and strengthen the protection of citizens' property rights, ahead of its formal legal recognition as a statutory organization.

Kim Joungho, President of the Korea Association of Licensed Real Estate Agents, is holding a press briefing and answering reporters' questions on the 26th at the association's central hall in Gwanak-gu, Seoul. Korea Association of Licensed Real Estate Agents

Kim Joungho, President of the Korea Association of Realtors, held a press briefing on the 26th at the Association Central Hall in Gwanak-gu, Seoul, stating, “We will take the lead in protecting the property rights of citizens in order to minimize illegal brokerage activities and transaction contract scams.”

He emphasized that, through the association's own self-regulatory efforts, issues like price collusion cartels among some licensed brokers are already being reduced, making further supervisory bodies unnecessary. Kim explained, “Our members are already under the supervision of the Ministry of Land, Infrastructure and Transport and local governments. If an additional supervisory agency were created, it would become a burden for our members. Even if the government establishes a new oversight body, it will not be able to prevent incidents before they occur. The association's self-regulatory function will be more effective in practice.” The establishment of a real estate supervisory agency was one of President Lee Jaemyung’s campaign pledges. Earlier this year, Assemblywoman Kim Hyunjung and others submitted a bill to legislate the establishment and operation of such an agency.

Kim stated, “We will strengthen member education by utilizing the association’s code of ethics and establish a system that allows members to monitor each other.” He added, “We plan to establish and operate a monitoring center, and if any harm is caused to the public, we intend to implement stronger penalties.” The association is currently consulting with the Ministry of Land, Infrastructure and Transport on amendments to its articles of association and code of ethics to coincide with its new legal status.

He also argued for the need to reform the brokerage commission system. “Currently, brokerage fees are determined through negotiation, which is a major source of disputes. The association believes that a fixed-rate system is the right direction,” he said. “We will work to persuade the government to introduce a fixed commission structure.” Regarding the basic site visit fee introduced at last year’s press briefing, Kim reiterated his support, saying, “No matter how much effort a broker puts in, if the contract fails, it’s like working for free. What matters is to provide high-quality service so customers feel the site visit fee is worthwhile.”

Regarding the association’s own brokerage platform, ‘Hanbang,’ he said, “Hanbang filters out false listings and provides accurate data on rents and leases. We will upgrade the platform’s features to offer a one-stop service, covering everything from property advertisements to the drafting of electronic contracts, in order to further vitalize its use.” He added that the association aims to maintain a healthy cooperative relationship with proptech platforms.

Finally, Kim stated, “The association will strive to earn the public’s trust and serve as a safeguard for property rights, while also supporting the government in its efforts to operate a stable real estate market.”

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