"We Will Eradicate Illegal Brokerage and Direct Transaction Fraud"... Korea Association of Realtors Ramps Up Monitoring

Kim Jongho: "Realtors Are Professionals with Social Responsibility"
Continuous Operation of Monitoring Center, Tracking Abnormal Transactions, and Resuming KARIS Index
Calls on Government for 'Policy Shift Toward Real Demand' Amid Industry Survival Crisis

The Korea Association of Realtors is launching full-scale monitoring activities to prevent illegal brokerage practices and direct transaction fraud amid an unstable real estate market.

President Kim Jongho presenting at the Korea Association of Realtors meeting on the 23rd. Photo by Korea Association of Realtors.

On April 23, the Korea Association of Realtors held a press conference at the Seoul Press Center to mark the inauguration of its 14th president, Kim Jongho, and announced, "We will fully implement our core initiatives to stabilize the real estate market and ensure transaction safety." President Kim emphasized, "Certified realtors are not just intermediaries, but professionals with social responsibilities," and added, "As direct transaction fraud and illegal unregistered brokerage are on the rise, it is essential for the association to have monitoring authority."

At this meeting, the association unveiled key initiatives it has developed, including: ▲ continuous operation of a center for reporting illegal brokerage activities, ▲ support for vulnerable groups regarding brokerage fees, ▲ expansion of the abnormal transaction monitoring system to cover single-family and multi-family homes, ▲ resumption of the real estate price index (KARIS) service, and ▲ adoption of ESG management. In particular, the association expressed its determination to address the structural limitation of lacking monitoring authority at a time when damages from real transaction fraud are rapidly increasing.

According to data analyzed by the association, apartment transaction volume has decreased by about 58% over the past five years. The brokerage industry is facing a survival crisis, compounded by the OECD's forecast that this year's economic growth rate will remain at around 1.5%. In fact, during January and February this year, only 1,796 new certified realtors opened businesses, while 1,804 closed during the same period, outnumbering new openings.

President Kim stressed, "It is now necessary to shift policies to focus on real demand, such as easing mortgage regulations for owner-occupied homes and relaxing capital gains and acquisition taxes," and stated that the association plans to propose to the government both the normalization of real estate taxation and policies to address regional disparities.

Meanwhile, the association replaced the inauguration ceremony for its 14th president with a donation for wildfire relief in the Yeongnam region. President Kim, who canceled the ceremony, stated, "As an institution serving the public, the meaning of sharing is more important."