A person passes by a real estate agent’s office in Seoul on Sept. 12, 2021. (Yonhap)
SEOUL, Aug. 28 (Korea Bizwire) — Despite the rebound of the real estate market, the count of licensed real estate agents establishing their independent agencies continues to decrease across the country.
The total number of such agents stood at 116,976 in July, dipping below 17,000 for the first time since January of the previous year, according to the Korea Association of Realtors.
Benefitting from the market’s resurgence, the count of licensed real estate agents reached its peak at 118,938 in July 2022. However, it subsequently experienced a downturn, falling to 117,583 in December of the same year.
Throughout the initial seven months of this year, the monthly tally of licensed agents exiting the industry remained consistently above 1,000. Additionally, over 100 real estate agents chose temporary closures each month.
The rise in the number of agents opting to leave their businesses temporarily or cease operations is primarily due to the decrease in transaction volume.
According to data from the Ministry of Land, Infrastructure, and Transport, nationwide housing transactions in June amounted to 52,592, marking a 4.7 percent decrease from the previous month.
The cumulative volume for January to June is estimated at 274,608, reflecting an 11.5 percent year-on-year decline.
The volume of “jeonse” and monthly rental contracts also decreased by 23 percent month-on-month, totaling 213,265 in June. The cumulative volume for January to June is estimated at 1,461,664, down 6.9 percent year on year.
Under South Korea’s jeonse system, tenants pay a large lump-sum deposit, known as key money, to the landlord, which is then returned at the end of the rental agreement, usually lasting two years.
During the lease period, the tenants do not pay monthly rent.
“While the real estate market has displayed signs of recovery, this recovery is limited to apartments. The overall transaction volume has significantly decreased,” an official at the Korea Association of Realtors said.
J. S. Shin (js_shin@koreabizwire.com)
