[2020 National Audit] Kim Hyun-mi "Not Considering a Broker-Free Transaction System"

"Business Linking Real Estate Paper Document Data"
"Investigation of Brokerage Fees and Industry Conditions Will Be Conducted"

Minister of Land, Infrastructure and Transport Kim Hyun-mi is listening to questions from committee members and reviewing materials during the National Assembly Land, Infrastructure and Transport Committee's audit of the Ministry of Land, Infrastructure and Transport, the Administrative City Construction Agency, and the Saemangeum Development Agency held at the Government Sejong Complex in Sejong City on the 16th. (Photo by Yonhap News)

[Asia Economy Reporter Jeon Mi-won] Kim Hyun-mi, Minister of Land, Infrastructure and Transport, stated on the 16th that there are currently no plans to develop a 'real estate transaction system without intermediaries.'

Jeong Dong-man, a member of the National Assembly Land, Infrastructure and Transport Committee from the People Power Party, pointed out during the Ministry of Land, Infrastructure and Transport's audit, "The government unilaterally announced plans to establish a transaction system without intermediaries," adding, "110,000 licensed real estate agents are worried about their jobs."

In response, Minister Kim explained, "Regarding the project details, currently real estate transactions involve exchanging paper documents, but the plan is to link and share that data."

When Representative Jeong asked, "Wouldn't it be enough to say that the Ministry of Land, Infrastructure and Transport will not establish a transaction system without intermediaries? Can you promise that?" Minister Kim replied, "Currently, we are not considering that issue."

Earlier, the Ministry of Economy and Finance announced the government budget plan in early last month, stating that 800 billion won will be invested in the top 10 Korean New Deal projects, including a real estate transaction system that does not require licensed real estate agents.

In response, the Korea Association of Licensed Real Estate Agents protested, saying, "Talking about transactions without intermediaries is desk-bound administration and a dangerous idea that could cause consumer harm," and they continue their struggle to this day.

However, Minister Kim hinted that adjustments to brokerage fees may be possible in the future.

In response to related questions from Hong Ki-won, a member of the Democratic Party of Korea, Minister Kim said, "Consumers are facing difficulties due to increased brokerage fee burdens caused by rising real estate prices, and because transactions are not active, real estate agents also feel the burden," adding, "We have started monitoring the overall situation."

Minister Kim added, "Through monitoring, we plan to thoroughly investigate the actual conditions of brokerage fees and the industry's circumstances."

Minister Kim also expressed a similar stance at the end of August during a plenary session of the National Assembly Land, Infrastructure and Transport Committee, stating that she would "consider improvement measures for (brokerage fee rates)."