If a Brokerage Assistant Advertises, the Broker Is Also Punished... Previous Advertisements Are Acceptable

One-Year Grace Period for Revised Real Estate Agent Act Ends. Enforcement Starts Tomorrow
Guidance Period Until September... Full Investigation and Punishment Thereafter
Previous Advertisements Not Subject to Punishment but Deletion Requested
Assistants Face Narrowed Roles... "Jobs Disappearing"

Seoul Jamsil real estate agency scene. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Moon Jiwon] Starting from the 21st, if a real estate advertisement displays the phone number of a brokerage assistant who is not a licensed real estate agent, both the brokerage assistant and the licensed real estate agent in charge will be subject to punishment. However, since significant confusion may arise during the initial implementation, the government plans to begin formal investigations and penalties after a one-month grace period starting next month. It has also been decided that advertisements by brokerage assistants posted before the law’s enforcement, which had caused controversy, will not be taken down nor penalized.

According to the Ministry of Land, Infrastructure and Transport on the 20th, the amendment to the Licensed Real Estate Agents Act, which was promulgated on August 20th last year, will take effect on the 21st after a one-year grace period. One of the key points of the amendment is the complete prohibition of real estate advertisements by brokerage assistants. Until now, it was common for licensed real estate agents to post advertisements including the contact information of brokerage assistants.

As a result, there were criticisms that brokerage assistants, who are only allowed to perform support tasks such as on-site guidance and general clerical work, were effectively conducting brokerage activities, leading to numerous damages. Consequently, the amendment has completely banned joint advertisements involving brokerage assistants.

If a brokerage assistant is caught advertising in the future, they may face imprisonment of up to one year or a fine of up to 10 million KRW, and the licensed real estate agent who neglects this will also be fined up to 10 million KRW under joint penalty regulations. Joint advertisements by licensed real estate agents holding certificates will continue to be permitted as before.

Advertisements before law enforcement are not subject to punishment... but should be deleted if possible

Advertisements posted by brokerage assistants before the law’s enforcement will not be penalized even if not deleted. A Ministry of Land, Infrastructure and Transport official stated, "Only advertisements displayed after the enforcement date that include brokerage assistants will be subject to penalties." However, considering potential consumer confusion, they are requesting that previous advertisements be deleted or modified if possible, and plan to ask the Licensed Real Estate Agents Association to do the same.

The Ministry plans to set a guidance period until the 21st of next month, after which it will actively investigate and punish illegal activities. On the 21st, the Korea Internet Advertising Foundation will be designated and announced as the monitoring agency, and the market situation will be observed for one month. Separately, the Korea Licensed Real Estate Agents Association will conduct a two-month intensive crackdown on online display and advertising violations and unregistered brokerage activities starting the day after the amendment’s enforcement.

Brokerage assistants face shrinking roles... even a Blue House petition

Licensed real estate agents generally support these measures, but brokerage assistants, who have effectively performed similar tasks to agents, are protesting as their roles diminish. A complainant working as an assistant in Gumi, Gyeongbuk, recently submitted a petition to the Blue House stating, "Most assistants generate income through advertisements, but due to these restrictions, jobs are disappearing," and added, "Only false or fraudulent acts should be penalized."

An industry insider familiar with brokerage work said, "Most brokerage assistants naturally oppose this amendment and there is significant internal resistance. However, since there have been many criticisms within the industry about assistants misleading consumers with false advertisements, many believe it is right to implement the law despite temporary inconvenience."

Meanwhile, licensed real estate agents who post false or exaggerated advertisements online will be fined 5 million KRW. Typical cases include agents posting advertisements without the homeowner’s request or advertising homes entrusted to other agents without authorization from the seller. Advertisements that significantly misrepresent the direction of the house, maintenance fees, or options are also considered unfair practices.