Real estate agent numbers hit six-and-a-half-year low amid transaction slump

The number of licensed real estate agents in South Korea has dropped to 108,319 in the second quarter, the lowest figure since the fourth quarter of 2019. This marks a 10.9% decrease from the peak of 121,543 agents in the first quarter of 2022.

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Government regulations have led to more consultations but fewer actual deals. Many agents with less experience are forced into joint transactions to share commissions, and some are closing shop.

The downturn in the real estate market, characterized by a sharp decline in both sales and rental transactions, is the primary driver behind this trend. In June, housing sales transactions fell by 6.8% year-on-year, while rental transactions decreased by 9.8%.

Agents' income is heavily dependent on transaction volume, as commissions form their main revenue stream. "Government regulations have led to more consultations but fewer actual deals," said a seasoned agent in Seocho-gu. "Many agents with less experience are forced into joint transactions to share commissions, and some are closing shop."

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The number of direct property transactions on Danggeun Market has surged by over 220 times since 2021.

An increase in direct transactions through online platforms like Danggeun Market also contributes to the challenging environment. The number of direct property transactions on Danggeun Market has surged by over 220 times since 2021. While risks like fraudulent listings exist, buyers find direct transactions appealing due to the avoidance of hefty brokerage fees.

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Large real estate transactions also come with large brokerage fees, so direct transactions seem to be increasing.