South Korea mandates management fee disclosure for small housing

South Korea's Ministry of Land, Infrastructure and Transport has approved amendments to the Enforcement Decree of the Real Estate Brokerage Act to increase transparency and protect tenants. The changes, which take effect on the 28th, mandate that real estate brokers verify and explain common management fees for small-scale housing, such as one-room studios and officetels, to potential tenants. This measure aims to prevent landlords from bypassing rent regulations by excessively inflating management fees.

Additionally, the amendments clarify the process for determining brokerage fees for residential officetels, specifying that they should be decided through negotiation between the client and the broker within the maximum rate limits. The revisions also follow the legal designation of the Korea Association of Realtors as a statutory body, establishing formal guidelines for its organizational structure, management, and professional ethics codes.