[Exclusive] Bithumb Seeks Entry Into Real Estate Platform Market, Pursues Partnership With Korea Association of Realtors

Bithumb Seeks to Secure Real Estate Listings, Including Apartments
Offering Investment Opportunities Beyond Cryptocurrency
Brokerage Industry Voices Opposition... "Concerns Over Advertising Costs and Direct Transactions"

Bithumb, a cryptocurrency exchange, is seeking to enter the real estate brokerage platform business. To that end, it plans to form a business partnership with the Korea Association of Realtors and secure property listings. The move is seen as an effort to offer its customers investment opportunities in real estate in addition to crypto assets. Attention is focused on whether it will shake up the real estate platform market, which is currently effectively divided between Naver and Zigbang. However, opposition to Bithumb's entry into the brokerage market is growing within the association, and some say it remains to be seen whether the partnership will be finalized.

According to industry sources on October 20, the Korea Association of Realtors and Bithumb are pursuing a business partnership agreement to link real estate information and operate related services. Bithumb Real Estate is the party to the agreement. A Bithumb official said, "It is true that we are pursuing a business partnership agreement with the association. The business is still in its early stages, and depending on whether the agreement is finalized, we plan to consider options such as establishing Bithumb Real Estate Co., Ltd."

The partnership would see the association provide Bithumb with property listings from Hanbang, its own real estate transaction information network, and receive support for costs such as upgrading the network in return. According to a draft of the agreement, the association would link data on its member real estate agents, while Bithumb Real Estate would handle platform development, operation, and maintenance. Hanbang lists apartments, buildings, commercial properties, factories, and land handled by more than 100,000 association-member licensed real estate agents nationwide. The total number of listings ranges from 900,000 to 1 million. However, the two sides are currently discussing initially limiting the listings covered by the partnership to apartments.

Bithumb's effort to secure property listings appears intended to offer real estate investment opportunities to its customers, whose cumulative registrations have reached 10 million, and to explore expanding its subscription services. The new platform will list not only properties secured by real estate agents but also properties submitted directly by sellers. Bithumb is also reportedly seeking to get an early hold on property data that could serve as the foundation for future real-world asset (RWA) ventures in real estate.

The association also expects the partnership to give its members' listings promotional exposure to Bithumb customers without additional advertising costs. Funds secured through the partnership could also be used to upgrade the Hanbang transaction network. An association official said, "Real estate agents are currently facing an excessively heavy advertising burden on Naver and Zigbang. If Bithumb's platform enters the market, competition among companies could create room for advertising costs to come down."

Some in the real estate brokerage industry have voiced concerns about Bithumb's entry into the real estate platform business. With multiple platforms, including Naver and Zigbang, already established in the market, Bithumb's entry could further increase the advertising burden on individual agents down the line. In response to the growing concerns, Bithumb held a briefing session at the association and explained that it would keep advertising and listing fees free and would not encroach on real estate agents' existing scope of work.

Yonhap News Agency

An industry source familiar with the matter said, "When a platform operator first enters the market, it may offer free services to real estate agents to secure a large number of listings, but things change as the number of users grows. As has happened with existing platforms, the greater their market dominance, the more dependent agents become on them. Once the three-year contract period ends, the burden of advertising costs and competition will ultimately grow."

There is also considerable opposition within the association. The partnership proposal was rejected once at a board meeting in September. The association has put it back on the agenda for the board meeting being held on October 20, but the outcome is uncertain. A senior association official said in a phone interview, "Bithumb says this is not entry into the brokerage business because it will not draw up real estate transaction contracts, but it will play a role in connecting agents and sellers through its platform. Unlike Naver or Zigbang, it could also open up a direct transaction market, which is a concern."

Ha Jaegap, secretary-general of the Korea Association of Realtors, recently wrote to members, "If we do nothing because we are concerned, pressure from existing monopolistic platforms will only intensify. The way to protect our livelihoods is not to run away, but to take the lead in shaping the market."

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