Gangnam District Real Estate Electronic Contracts Surge Eightfold in One Year

The Proportion of Electronic Contracts Rises to 7.3% in the First Half of This Year
Growing Trend Driven by Enhanced Safety and Efficiency

The number of real estate transactions in Seoul's Gangnam District using the electronic contract system in the first half of this year increased more than eightfold compared to a year ago, indicating that electronic contracts are rapidly establishing themselves as a safe and efficient method of transaction.

Gangnam District Office exterior. Provided by Gangnam District Office.

According to Gangnam District Office on July 4, the number of transactions using the electronic contract system in the first half of this year was 333, accounting for 7.3% of the total. During the same period last year, there were 42 cases (0.5%).

The Real Estate Electronic Contract System (IRTS) is the official platform of the Ministry of Land, Infrastructure and Transport that allows for the signing of sales and lease contracts online without the need for paper documents or personal seals. Since its introduction in 2016, it has mainly been used by public institutions. However, as digital consumers in their 30s and 40s have emerged as key players in the real estate market, its use in private transactions has surged recently.

In fact, the number of electronic contracts in Gangnam District increased sharply from 4 cases (0.07%) in 2023, to 42 cases (0.45%) last year, and to 333 cases (7.31%) as of June this year.

The advantages of electronic contracts include preferential interest rates of 0.1 to 0.2 percentage points for mortgage loans, prevention of illegal brokerage activities and contract forgery or falsification, prevention of false reporting, and enhanced safety and convenience through features such as automatic processing of real transaction reports, lease reports, and fixed date registration at the time of contract. Only licensed real estate agents can use the system, blocking access by unqualified individuals, and all contract information is securely stored through encryption.

Cho Sungmyung, head of the Gangnam District Office, stated, "Electronic contracts increase the reliability of real estate transactions and enable residents to sign contracts more safely and conveniently. We will continue to actively promote this system and strengthen digital-based real estate administrative services."