Suncheon City Actively Promotes Reduction of Real Estate Brokerage Commission Rates

Implementation of Real Estate Brokerage Fee Reform Plan Starting from the 19th

[Suncheon=Asia Economy Honam Reporting Headquarters Reporter Lee Hyung-kwon] Suncheon City, Jeollanam-do (Mayor Heo Seok) has actively promoted the new 'Enforcement Rules of the Licensed Real Estate Agent Act' starting from the 19th to prevent confusion among citizens and licensed real estate agents due to the reduction in real estate brokerage commission rates.

Recently, as real estate prices have risen significantly, the government has pushed for revisions to the Enforcement Rules of the Licensed Real Estate Agent Act to reduce the burden of brokerage commissions on citizens.

The main point of this revision is to lower the maximum commission rates for sales over 600 million KRW and lease contracts over 300 million KRW.

For sales, the commission rate for the 600 million to 900 million KRW range has been reduced from the previous 0.5% to 0.4%. The rates for 900 million to 1.2 billion KRW, 1.2 billion to 1.5 billion KRW, and over 1.5 billion KRW are set at 0.5%, 0.6%, and 0.7%, respectively.

For leases, the commission rate for the 300 million to 600 million KRW range has been reduced from 0.4% to 0.3%. The rates for 600 million to 1.2 billion KRW, 1.2 billion to 1.5 billion KRW, and over 1.5 billion KRW are set at 0.4%, 0.5%, and 0.6%, respectively.

These rates represent the maximum commission rates that licensed real estate agents can charge. During actual contract negotiations, the client and the agent may mutually agree on a specific rate within these maximum limits.

The city plans to produce and distribute revised brokerage commission rate tables to prevent confusion among citizens and licensed real estate agents, and will actively promote the changes through its website and the Suncheon branch of the Licensed Real Estate Agents Association.

A city official stated, “Since the Enforcement Rules of the Licensed Real Estate Agent Act have been revised to reduce citizens' brokerage commission burdens, we ask for the active cooperation of licensed real estate agents and citizens to ensure that the revised commission rates are stably applied in the real estate brokerage market.”