Real estate transactions decline amid tightened lending rules. (Image courtesy of Yonhap)
SEOUL, July 4 (Korea Bizwire) – Amid a prolonged slump in South Korea’s real estate market, the number of operating real estate agents has dropped to its lowest point in more than four years, underscoring the industry’s deepening struggles.
According to data released Wednesday by the Korea Association of Realtors, the number of active licensed real estate brokers with offices stood at 111,123 as of the end of May — down 2.6% from a year earlier and 0.3% from the previous month. This marks the lowest monthly total since December 2020.
The decline is part of a 27-month downward trend that began in February 2023, when falling housing prices and shrinking transaction volumes triggered widespread closures and reduced new entrants to the industry. In the first five months of 2025, the average number of practicing brokers was down 1.8% from last year and 5.7% from 2022.
Out of more than 551,000 licensed brokers nationwide, only about one in five is currently active in the field.
Closures have surged in recent months, with over 1,000 real estate offices shuttering each month from February through May. The only exception was January, which recorded 972 closures.
Apartment complexes in Seoul. (Yonhap)
The downturn mirrors a broader freeze in the housing market. According to a report by KB Financial Group, national home prices fell 1.8% in 2022 — the first annual decline since 2012 — and have struggled to recover amid a cocktail of headwinds, including pandemic aftershocks, sluggish domestic demand, high interest rates, and tighter lending regulations.
Political instability has further dampened sentiment. A presidential impeachment earlier this year, combined with a cooling presale market, has eroded buyer confidence. Even in Seoul, where activity typically remains resilient, only two major apartment complexes — Raemian One Perla and Cheonggye Norway Forest — were offered for general sale through May.
Nationally, new apartment supply fell to 17,176 units in May, down 7% year-over-year. The decline was even more dramatic among mid-sized developers, whose supply of sub-500-unit complexes dropped nearly 73%.
The situation is expected to worsen following the government’s June 27 introduction of strict new lending restrictions, which market observers say will likely prolong the industry’s stagnation.
“There’s simply no incentive for new brokers to open offices right now,” said one industry insider. “Unless transaction volumes pick up or more housing supply is announced, it’s hard to see a turnaround in the near term.”
M. H. Lee (mhlee@koreabizwire.com)
