Korea Association of Realtors to become legal entity

The Korea Association of Realtors (KAR) will officially transition to a legal entity status on the 28th, marking its first such shift in 27 years since becoming a voluntary organization in 1999. During a press conference, KAR President Kim Jong-ho emphasized that this transition is a commitment to greater responsibility rather than just an expansion of authority.

Key objectives for the association include strengthening self-regulation, enhancing professional expertise, and preventing illegal brokerage activities and Jeonse fraud. The association plans to establish ethical guidelines, expand member training, and improve public services such as dispute mediation and standardized brokerage services. To address the risks of direct transactions, particularly in villas and multi-family housing, KAR will collect damage cases to support institutional improvements.

Regarding industry challenges, Kim noted a decline in new real estate registrations and an increase in business closures due to a shrinking market. He advocated for policy shifts away from heavy regulation toward market revitalization and protection for actual homeowners, specifically calling for eased loan restrictions for youth and first-time buyers. Additionally, the association proposed a fixed brokerage fee system to stabilize market order and suggested improvements to compensation structures for on-site inspection services.