871 New Agencies Nationwide, Outnumbered by 972 Closures and Suspensions
Slight Increase in Seoul, but Experts Say "Only a Temporary Phenomenon"
As the prolonged slump in real estate transactions continues, the real estate brokerage industry as a whole remains in a downturn. The number of certified real estate agencies nationwide has been on a net decline for the third consecutive year.
On February 26, the Korea Association of Realtors announced that in January, there were 871 new certified real estate agencies launched nationwide, which was fewer than the number of agencies that closed or suspended business (972 cases). This net decrease, with more agencies closing than opening, has continued for 36 consecutive months.
However, in Seoul, the number turned to a net increase for the first time in 11 months, supported by demand during the moving season. The number of new agencies opened in Seoul was 228, slightly surpassing the number of closures and business suspensions (204 cases). This marks the first time in 11 months that the number of real estate agencies in Seoul has shifted to a net increase.
Nevertheless, experts in the field analyze that even this net increase in Seoul is only a temporary phenomenon, attributed to the rebound in prices in some areas of Gangnam and seasonal demand from the spring moving period. They caution that it is difficult to interpret this as a sign of a broader market recovery.
January is typically a month when new agencies open in large numbers, influenced by moving season demand and the schedule of the certified realtor exam. In January 2015, there were 381 new agencies opened in Seoul, and in January 2022, the number reached 522.
However, due to the ongoing transaction freeze, the number dropped to 228 in January of last year. In January of this year, 238 new agencies opened, outpacing closures and suspensions, but this is still considered a low level compared to the past peak periods.
A representative from the Korea Association of Realtors stated, "January is generally a month with a high number of new openings," and added, "While expectations have revived in some areas, it is difficult to say that the industry has fully emerged from the recession." The representative further commented, "Ultimately, the industry will only become more vibrant if transaction volumes increase, but it is still not easy to feel the effects of government policy on the ground."
Meanwhile, the popularity of the certified realtor exam, once called a "national certification," has been steadily waning over the past few years. According to the Human Resources Development Service of Korea, a record high of 408,492 people took the certified realtor exam in 2021. However, the number fell to 387,705 in 2022 and 292,939 in 2023, marking a decline for two consecutive years.
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