Real Estate Cartels Reach Into National Assembly... Target Lawmakers to Demand Withdrawal of Brokerage Bill

As an amendment to the Licensed Real Estate Agents Act that would prohibit excluding certain brokers from co-brokerage deals moves forward, real estate cartels are organizing to block it. They have circulated the email addresses of lawmakers on the Land, Infrastructure and Transport Committee and urged brokers to send in opinions demanding the bill be withdrawn. Recently, they were also confirmed to have visited the offices of lawmakers who sponsored the bill to lodge protests in person. Real estate cartels already suspected of colluding to fix housing prices are now extending their reach into the National Assembly.
■ Phone harassment becomes routine... "To the point of distress"
According to reporting by Financial News on the 9th, a large number of brokers residing in the constituency visited the office of a lawmaker A, who sits on the Land, Infrastructure and Transport Committee, on the 8th. The group, reportedly made up of around 10 executives from the central association, argued in A’s office that the amendment to the Licensed Real Estate Agents Act is unfair.
The office of lawmaker B, who co-sponsored the amendment, received an email the same day from a local chapter head in the Gangnam 3 Districts (Gangnam, Seocho, Songpa), insisting the bill needed to be revised. The content was similar to registered mail sent last month by the Gyeonggi Southern Association and the Gangwon Special Self-Governing Province Association of the Korea Association of Realtors. They delivered complaints to the lawmakers’ offices claiming the bill would eliminate individual business autonomy, increase disputes and damages related to co-brokerage, and represent only the interests of large capital, and argued that "the amendment must be withdrawn."
Phone "terror" has become part of daily life. A staffer at the office of a lawmaker on the Land, Infrastructure and Transport Committee said, "Even recently, we have been receiving numerous phone calls, faxes, and emails," adding, "It feels to the point that we are being harassed."
Real estate cartels are taking issue with the clause in the amendment that would newly prohibit "acts that restrict brokerage of specific properties or restrict co-brokerage by other licensed real estate agents in a way that interferes with business operations, and impose fines for violations." They argue that if the bill passes, licensed agents’ freedom to choose which transactions to handle will inevitably be curtailed. The problem, however, is that when the bill was drafted, a consensus had already been reached across the sector, including the Ministry of Land, Infrastructure and Transport, the Korea Association of Realtors, and the Korea Proptech Forum. A real estate industry official remarked, "There have been continuous media reports about real estate cartels operating in Gangnam and other areas, and yet they are still engaging in this kind of harassment. It is hard to believe," adding, "In effect, it is just a waste of time."
■ "Disgusting" — criticism from within the brokerage industry
Criticism is also emerging from within the brokerage industry. Discontent is reportedly especially high among newly established brokers. One broker even described the cartels’ organized actions as "disgusting." An industry insider commented, "The purpose of this bill is to crack down on collusion by real estate cartels," and asked, "If someone is opposing this, does that mean they intend to keep the cartel going in the future?"
Meanwhile, following this newspaper’s exclusive report (“Taking tens of millions of won in membership fees for backroom deals... Broker collusion rampant in central Seoul”), the government has further strengthened its response to illegal real estate practices. After previously uncovering a licensed broker cartel in the Banpo-dong area of Seoul, authorities now plan to conduct joint on-site inspections of real estate offices across Gangnam and Seocho districts.

On the same day, the Real Estate Supervision Task Force of the Office for Government Policy Coordination held the 11th meeting of the Anti-Illegal Real Estate Practices Inter-Agency Task Force at Government Complex Seoul to discuss a coordinated response among related agencies. Representatives from the Ministry of Land, Infrastructure and Transport, the Financial Services Commission, the National Tax Service (NTS), the Korean National Police Agency (KNPA), and other bodies attended. They shared updates on investigations and probes into illegal real estate activities and reviewed plans for inter-agency cooperation. Kim Yong-soo, head of the Real Estate Supervision Task Force, stated, "Collusion among licensed real estate agents identified in certain parts of Seoul is an illegal act that undermines trust in the market," and warned, "We will respond strictly by mobilizing all available measures, including business suspensions and license revocations."

kjh0109@fnnews.com Kwon Jun-ho and Jang In-seo Reporter