Eradicating Inducement of Kkangtong Jeonse Contracts... Formation of Real Estate Brokerage System Reform TF

First Meeting on the 17th

The Ministry of Land, Infrastructure and Transport announced that it has formed the 'Real Estate Brokerage System Reform Task Force (TF)' consisting of private, public, and academic participants to discuss improvement measures for the real estate brokerage system, and held its first meeting on the 17th.

[Image source=Yonhap News]

At the meeting, major types of jeonse fraud were reviewed, including cases where licensed real estate agents induce "empty shell" jeonse contracts for performance-based compensation or unqualified individuals engage in illegal brokerage activities. Opinions were also gathered on the TF's future operation plans and discussion agenda.

The Real Estate Brokerage System Reform TF is led by the Ministry of Land's Land Policy Officer as the TF team leader and is composed of the Korea Association of Realtors, platform industry representatives, local governments, Korea Real Estate Board, Korea Research Institute for Human Settlements, and youth representatives.

The Ministry of Land plans to expand the group of relevant experts according to the agenda items discussed to diagnose issues such as illegal brokerage activities in the field and to prepare comprehensive reform and modernization measures for the entire real estate brokerage system.

The main reform measures for the brokerage system include △strengthening the safety of brokerage transactions, △enhancing the professionalism of licensed real estate agents, and △creating a convenient real estate transaction environment. Detailed contents will be coordinated through TF discussions.

Nam Young-woo, Land Policy Officer at the Ministry of Land, said, "We are deeply concerned about the increasing number of jeonse fraud cases involving licensed real estate agents, which is raising public anxiety about the safety of real estate brokerage transactions." He added, "Through the operation of this TF, we will diagnose the chronic problems in the real estate brokerage industry and prepare comprehensive reform measures to create a transparent and safe real estate transaction environment where the public can trade with confidence."