Real Estate Agents Hold 'Lights-Out Protest' for 3 Days After Chuseok Holiday... "Cannot Lower Brokerage Fees"

Office Lights Out Nationwide from 23rd to 25th
Growing Backlash Against Brokerage Fee Reduction Policy
3rd Government Protest Rally Scheduled on 24th

A price list is attached to the glass window of a licensed real estate agent in downtown Seoul.
[Image source=Yonhap News]

Real estate agents opposing the government's plan to lower the upper limit rate of brokerage fees will hold a "lights-off at offices" protest for three days after the Chuseok holiday.

According to the real estate industry on the 19th, the "Central Struggle Committee for Survival Rights," launched mainly by the Korea Association of Realtors, plans to carry out a "lights-off at offices" protest involving all members nationwide for three days from the 23rd to the 25th, after the Chuseok holiday.

Earlier, the Association of Realtors formed the "Survival Rights Struggle Committee" and has been fighting against the government in response to the Ministry of Land, Infrastructure and Transport's plan to lower the upper limit rate of brokerage fees that real estate agents receive during transactions.

Real estate agents across the country, including in Busan, Gwangju, and Ulsan, have also conducted a strike, saying, "With housing prices rising, real estate transactions have significantly decreased, and lowering brokerage fees is an administrative outrage."

The association also plans to hold the 3rd government condemnation rally at 11 a.m. on the 24th in front of the Ministry of Land, Infrastructure and Transport building in Sejong City. They are also considering plans for simultaneous rallies held by 19 city and provincial branches nationwide on the same day and time.

The Central Struggle Committee explained, "We have also checked the consultation process related to the Ministry of Land's recent initiatives to change the form of the brokerage object confirmation explanation and to raise the amount for business guarantee settings, reaffirming a tough stance once again."

The Ministry of Land, Infrastructure and Transport announced a brokerage fee reform plan to lower the upper limit rate for sales transactions over 600 million KRW and lease transactions over 300 million KRW. The revised brokerage fee rates are expected to be applied as early as the beginning of next month.

Since the current government took office, housing prices have surged sharply, and brokerage fees linked to this have also risen significantly. The government aims to reduce the burden on consumers by partially adjusting the upper limit rate, but from the agents' perspective, income may decrease, leading to widespread nationwide opposition.

One real estate agent said, "The brokerage industry is at a crossroads due to the decrease in transaction volume caused by the government's failure in real estate policy and the direct entry of real estate platforms into brokerage," adding, "If we continue to be pressured by government policies, the threat to our survival rights will become even more severe."

In fact, recent brokerage corporations such as Darwin Brokerage and Udaebbang have been promoting "half-price" brokerage fees, intensifying competition within the brokerage industry.

However, many general consumers, exhausted by the high brokerage fee burden, support the reduction of brokerage fees, making it difficult for the real estate agents' claims to gain strong support.

Voices within the brokerage industry also call for accepting reality. A broker in Seoul said, "The association should stop the unjustified struggle and join efforts to reduce the rates for high-priced homes to alleviate the public's pain," adding, "Instead, they should prepare other alternatives to reduce the pain of brokers and pressure the government."