1100 Brokerage Assistants Disappeared in Two Months Amid Transaction Cliff

Increasing Number of Closed Real Estate Agencies
Assistant Jobs Continue to Decline
Transaction Volume Recovered This Year
But Real Estate Brokerage Industry Still Lacks Warmth
Stricter 'Hiring Cap' Regulations Also Play a Role

Amid the economic downturn hitting the real estate market, the number of assistant brokers packing up has surged. In the past two months alone, around 1,100 assistants have disappeared from certified real estate agencies nationwide. This situation contrasts with observations that housing transaction volumes have been recovering this year. The brokerage industry analyzes that the market temperature is still cold.

The government announced the "Housing Market Stabilization Plan," which includes strengthening the comprehensive real estate tax on high-priced housing and regulating mortgage loans for apartments priced over 1.5 billion won in speculative areas and speculative overheating districts. On the 17th, a price list was posted at a real estate agency office in Songpa-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

Despite Market Recovery Outlook, Sharp Decline in Assistant Brokers

According to the Korea Association of Realtors on the 23rd, as of last month, the number of assistant brokers affiliated with certified real estate offices nationwide was counted at 62,856. This is a decrease of 1,150 compared to the end of last year (64,006). The region with the highest number of assistant brokers nationwide is Seoul (17,503), which saw a reduction of 220 during the same period. Gyeonggi (14,448) decreased by 248, and Incheon (3,252) by 60.

Assistant brokers refer to employees who perform simple tasks such as accompanying clients to view houses or guiding listings at certified real estate offices. They can work at certified real estate agencies after completing a certain period of training without official certification. The key difference from certified realtors is that they are not allowed to conduct brokerage activities.

The nationwide decline in the number of assistant brokers is growing. The number of assistant brokers nationwide, which remained in the 60,000 range from 2018 to 2020, peaked at 72,396 in 2021 during the rapid rise in housing prices, then maintained around 70,440 in 2022, before dropping back to the 60,000 range starting last year.

As lease and sale transactions halted, the number of closed certified real estate offices increased, leading to a reduction in jobs for assistant brokers. As of last month, there were 114,856 certified real estate offices nationwide, down by 184 from the previous month (115,040). This is the lowest level in two and a half years since August 2021 (114,798). Compared to the peak number of offices in June 2022 (118,952), there are 4,096 fewer offices.

This trend contrasts with analyses that the real estate market, centered around Seoul, is emerging from a transaction cliff. According to the Ministry of Land, Infrastructure and Transport, the nationwide housing sales transaction volume (based on reporting date) was 43,491 in February, up 1.1% from the previous month (43,033) and 5.6% from the same month last year (41,191). The metropolitan area transaction volume was 18,916, increasing 7.4% from the previous month and 9.7% year-on-year.

An industry insider said, "While the number of certified real estate offices and assistant brokers may increase as transactions recover in some areas, non-metropolitan regions still face issues such as unsold properties and transaction cliffs, so it is difficult to view this as a nationwide phenomenon." The number of assistant brokers nationwide continued to decline, with 70,072 in January and 69,497 in February this year.

Only Up to 5 Assistant Brokers per Certified Realtor... Industry Says "Many Unregistered Assistants"

Stricter regulations have also contributed to the decrease in assistant brokers. In April last year, the Ministry of Land, Infrastructure and Transport introduced a regulation limiting the number of assistant brokers to five per certified realtor. This reinstated the assistant broker hiring cap, which allowed up to two assistants per brokerage office and was abolished in 1999, after 24 years. The full implementation will begin in April 2026.

Additionally, since October last year, the Enforcement Decree of the Certified Real Estate Agent Act was amended to require assistant brokers to disclose their status to clients. This measure was implemented following suspicions that assistant brokers were involved in lease fraud cases that surfaced last year. The industry also agrees with these assistant broker regulations to ensure transparency and trustworthiness in real estate transactions.

However, the industry explains that while the regulations appear to be followed on the surface, the reality is different. An industry insider said, "Simply calculated, the number of assistant brokers per brokerage office is within two, but if unregistered assistant brokers are included, the number increases significantly," adding, "There are brokerage offices with dozens to over a hundred assistant brokers." They also noted, "It is practically difficult to verify whether the obligation to disclose assistant broker status is being fulfilled."