[Reporter’s Notebook] Korea Association of Realtors Presidential Election... Hoping for a Turning Point in Conflict Resolution

The 'transaction cliff' phenomenon in the housing market is intensifying due to the burden of soaring house prices and the impact of loan regulations by financial authorities. Although the full-scale autumn moving season began after Chuseok, the number of sales transactions is sharply declining as fewer people are willing to buy houses. The photo shows a quiet real estate agency in a densely populated apartment complex in Seoul on the 19th. Photo by Hyunmin Kim kimhyun81@

The atmosphere in the brokerage industry is unsettled ahead of the Korea Association of Realtors presidential election scheduled for the 25th of next month. The surrounding environment for this election, held for the first time in three years, is more challenging than ever. With the transaction market frozen, dissatisfaction among frontline brokers toward the government and the association leadership is growing due to the reduction of the upper limit on brokerage commission rates amid already difficult circumstances.

Reflecting this chaotic situation, there is an unprecedented change rarely seen in past elections: the current association president has announced he will not run. According to association regulations, which allow for re-election after a three-year term, most incumbent presidents have run in subsequent elections, but this time, the current president declared his intention not to run even before the election notice was posted. A senior association official explained, "Because the president's authority is so powerful, it is very rare for an incumbent not to run in the next election."

Although the current president promised a single term during the last election process, there is analysis both inside and outside the association that the responsibility for failing to block the recent brokerage commission reduction reform influenced his decision not to run. Since the reform was implemented on the 19th, the industry has experienced significant aftershocks. Brokers met on-site for reporting unanimously raised their voices in criticism of the government. There are also forecasts that a ‘hardliner’ will be elected as the next president.

However, many are concerned that the confrontational atmosphere among brokers may intensify during this election process. The reduction of brokerage commissions is not merely a unilateral government policy but also reflects the will of the public, exhausted by high housing prices and brokerage commission burdens.

Besides brokerage commissions, the brokerage industry has a mountain of issues to negotiate with the government going forward. If the brokerage commission issue becomes all-consuming and deepens conflicts with the government and public opinion, it could cause confusion in the transaction market and negatively impact brokers’ responsibility to establish orderly transaction practices.

The president of the Korea Association of Realtors holds immense authority. They control a budget exceeding 40 billion won annually and personnel rights, and as the representative of 110,000 licensed brokers, they have considerable influence on the real estate market. Consequently, the responsibilities on their shoulders are inevitably great. It is hoped that the next administration will resolve conflicts with the government and restore public trust.

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