[Exclusive] Despite "Let's Beat Naver and Zigbang" Plea, Bithumb's Real Estate Platform Push Blocked Again

Pursued a partnership with the Korea Association of Realtors, but talks fell through

Bithumb's president personally tried to persuade the association, but industry opposition grew

Bithumb's plans to enter the real estate platform market take

Cryptocurrency exchange Bithumb sought to enter the real estate brokerage platform business by promoting a “network platform” and pursuing a business partnership with the Korea Association of Realtors, but the effort has fallen through once again. Bithumb appealed to the association in a lengthy letter, saying it had “acted with sincerity,” but failed to overcome opposition from the brokerage industry.

According to industry sources on October 21, the Korea Association of Realtors had planned to put an agenda item on a “business partnership agreement for linking real estate information and operating related services” with Bithumb before its board at a meeting the previous day, but the plan was withdrawn. This was because a substantial number of the directors in attendance opposed putting the item on the agenda.

Under the agreement, the association would provide Bithumb Real Estate with listings from Hanbang, the real estate transaction information network it operates, in return for support for costs such as upgrading the network. Bithumb is considering establishing Bithumb Real Estate as it moves into the brokerage platform business.

This was the second attempt at a business partnership between Bithumb and the association. The agenda item was put before the association’s board last month but was rejected after failing to secure support from a majority of directors. Because it had already been rejected once, a vote on whether to put it back on the agenda was held at the board meeting the previous day. This time, however, it was withdrawn without even being placed on the agenda.

As opposition from the brokerage industry grew ahead of the board meeting, Bithumb sent the association an appeal on October 19 titled “A Letter to the Members of the Korea Association of Realtors” in a last-minute effort to persuade it. The 14-page letter was issued in the name of Bithumb President Heo Baekyoung.

Based on the letter, a draft of the partnership agreement, and Bithumb’s explanatory materials, the company envisioned a “network platform” that would set it apart from existing real estate brokerage platforms such as Naver Real Estate and Zigbang.

The biggest difference is that brokers listing properties would not be charged advertising fees or commissions. The approach appears aimed at meeting demand from frontline brokers facing growing cost burdens from the high advertising fees charged by existing platforms such as Naver Real Estate and Zigbang.

In the letter, Heo said, “If Bithumb Real Estate, which does not charge advertising fees, enters the market, other platforms will have no choice but to lower their advertising fees to retain brokers,” adding, “We generate revenue not from advertising fees but from the small usage fees paid by the many people who use our network, so we will not be the first to tire in this competition.”

Another distinguishing feature is that, unlike existing platforms where only brokers can list properties such as apartments, Bithumb’s platform would also allow sellers to submit listings directly. Bithumb believes this approach could significantly increase both the number of listings and the number of completed transactions.

In the letter, Heo said, “We can grow the market itself by drawing out buyers’ and sellers’ intentions that exist only in their minds and have not yet come to market,” adding, “I believe this could multiply both the total transaction value and the number of transactions several times over. That would also mean more brokerage fees for brokers.”

While allowing sellers to post properties on the platform, Bithumb also distinguished its service from Karrot, where direct transactions are possible, by preventing sellers and buyers from contacting each other directly without going through a broker.

Heo emphasized his commitment to the new business, saying, “Bithumb came to the association hoping to join forces with it, compete against platforms like Naver, Zigbang, and Karrot, and win together,” and, “A network platform that does not charge advertising fees would bring major changes to this market. Bithumb will bring all its capabilities to bear.”

A citizen walks past property listings for sale and jeonse posted at a real estate agency in Gangnam-gu, Seoul, on the 30th of last month. Yonhap News

However, with the partnership agreement with the association, the first step in the process, falling through again, Bithumb’s plans are likely to face inevitable setbacks. The association is considering whether to put the item back on the agenda at its next board meeting, but the proposal has already fallen through twice and faces considerable industry opposition, which could put both the association and Bithumb in a difficult position.

An association official said, “The proposed business partnership agreement with Bithumb has not been completely ruled out yet,” adding, “We need to review the association’s bylaws and other relevant provisions before making another decision on whether to put it back on the agenda.”

Industry observers are concerned that if Bithumb enters the real estate platform market, competition among brokers will ultimately intensify and the burden of advertising fees could grow. Even if Bithumb does not charge advertising fees at first, it could use the increased market power it gains during the contract period to start charging for the service later.

Brokers also have a fundamental concern that the more new platforms enter the market, the more dependent the industry will become on them. An industry official said, “Many brokers are concerned that Hanbang’s competitiveness continues to decline while the influence of private platforms grows,” adding, “Listings should be shared with caution.”

Bithumb said, “We have discussed a business partnership with the Korea Association of Realtors, but no full-fledged partnership is underway and nothing has been finalized.”

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