PHOTO: The Korea Times.
📉 Active Agents Fall Below a Critical Threshold
The number of active licensed real estate agents in South Korea has dropped below 110,000 for the first time in more than five years, highlighting the scale of the downturn gripping the country’s property sector.
According to the Korea Association of Realestators, there were 109,979 active agents at the end of last month. The last time the figure dipped this low was in August 2020, when 109,931 agents were operating.
While the country still has 551,879 licensed real estate agents, only one in five is currently running an active office — a stark indicator of how tough conditions have become.
🏛️ Regulations Choke Transactions
Industry figures point squarely at government real estate regulations as the primary cause of the decline.
In the capital region, mortgage loans for property purchases have been capped at 600 million won, dramatically reducing buyers’ ability to transact. At the same time, all of Seoul and 12 areas in Gyeonggi Province have been designated as regulated and land transaction permit zones, further slowing sales activity.
With fewer deals being done, many agencies are finding it financially unsustainable to keep their doors open.
🏢 More Closures Than Openings — Month After Month
The imbalance between agencies opening and closing has now persisted for nearly two years.
From February 2023 through to last month, more real estate offices shut down or suspended operations than were newly established. The trend first emerged in the second half of 2022, when housing prices began to fall and transaction volumes dried up — and it has shown little sign of reversing.
🆕 New Agency Openings Hit Record Lows
The slowdown is also visible in new business formation.
In August, just 583 new real estate agencies opened nationwide — the first time the figure has fallen below 600 since records began in 2015. While openings rebounded slightly to 666 in September and 609 in October, numbers remain well below historical norms.
📝 Fewer People Want In
Even the pipeline of future agents is shrinking.
Applications for South Korea’s real estate agent qualification exam fell to 148,004 in October, marking the first time in eight years that applications dropped below 200,000. The last comparable figure was in 2016, when 183,867 people applied.
The decline suggests growing scepticism about the profession’s prospects amid tightening regulation and reduced earning potential.
🌏 A Structural Shift, Not a Short-Term Dip?
Analysts say the numbers point to more than a temporary slowdown.
With strict lending limits, regulated transaction zones, and prolonged weak sales volumes, South Korea’s real estate industry appears to be undergoing a structural contraction — shrinking the number of active agents even as licence holders remain high.
Unless transaction volumes recover or policy settings ease, the agent workforce may continue to thin out.
🔑 The Big Picture
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📉 Active agents below 110,000 for first time in 5+ years
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🧑💼 Only 1 in 5 licensed agents currently operating
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🏛️ Mortgage caps and permit zones freezing transactions
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🏢 Office closures outpacing new openings since early 2023
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📝 Fewer people applying to become agents
For South Korea’s property sector, the message is clear: the market isn’t just cooling — it’s consolidating.
SOURCE: MSN