The Korean Association of Certified Real Estate Agents has officially regained its status as a legal entity after 27 years, a significant milestone celebrated at a ceremony held on September 9, 2023, at Sejong University in Seoul. Notable figures, including Jang Dong-hyuk, the representative of the People Power Party, and Kim Jong-ho, the president of the association, attended the event, underscoring the importance of this transition not only for the association but for the real estate industry as a whole.
This change comes as the association embarks on a mission to enhance real estate transaction order and consumer protection. The transition back to a legal entity status is seen as a pivotal step in clarifying the association’s public responsibilities and its role in the regulation of real estate practices. In its original inception in 1986, the association was a legal entity; however, it transitioned to a non-profit organization in 1999 as part of regulatory relaxation measures. The recent amendment to the Real Estate Agent Act, passed by the National Assembly on January 29, 2023, has now restored its legal status.
The revised law specifies that a single Korean Association of Certified Real Estate Agents must be established, eliminating any possibility for multiple associations. This measure aims to create a more unified regulatory framework, requiring the approval of the Minister of Land, Infrastructure, and Transport for any changes to the association’s bylaws. The restoration of its legal status will allow for more systematic management of real estate agents’ ethics and responsibilities, providing a robust foundation to address illegal and unethical practices in the industry.
President Kim Jong-ho emphasized the new responsibilities that come with this status, stating that the association must now earn the trust of the public by proving its value and establishing itself as an irreplaceable expert in the field of real estate. He noted the crucial need for the association to create a trustworthy real estate market and protect consumers effectively.
However, the transition to a legal entity does not automatically ensure that all practicing real estate agents will align with the association’s management system. The new legislation does not mandate compulsory membership for real estate agents, nor does it grant the association the authority to directly discipline members for unethical behavior. This absence of mandatory membership and disciplinary power has raised concerns, prompting the association to pursue further legislative reforms to secure these essential rights. The goal is to bring all practicing agents under a unified ethical and management structure, thereby enhancing consumer protection and preventing potential abuses in the market.
During a press conference prior to the ceremony, President Kim highlighted the disparity between the Korean Association of Certified Real Estate Agents and other professional bodies, which have mandatory membership and supervisory powers. To combat illegal and unethical practices, he proposed a system where members monitor each other, with severe violations reported to regulatory bodies for action.
In addition to enhancing governance, the association aims to expand its role in mitigating risks associated with real estate transactions, particularly those related to fraudulent practices like rental scams and unqualified intermediaries. The legal entity status will empower the association to intensify surveillance over illegal and unqualified practices, while also collaborating with public institutions to create a safer leasing environment.
Moreover, the association faces the challenge posed by the rise of artificial intelligence (AI) and property technology (PropTech), which are transforming the real estate landscape. President Kim acknowledged the apprehension surrounding these technologies, which some suggest could render real estate professions obsolete. However, he asserted that the unique human elements of real estate—such as understanding complex relationships and building trust—remain irreplaceable. The association is committed to equipping its members with the necessary skills to leverage AI and other technologies effectively, ensuring they remain relevant in an evolving market.
To address the often unjust penalties faced by certified real estate agents, the association is advocating for reforms to eliminate unreasonable administrative sanctions. President Kim recounted numerous instances where agents faced significant fines for minor infractions, emphasizing the need for a more equitable system. The association is actively pushing for legislative changes to rectify these issues and protect the legitimate interests of real estate professionals.
As the Korean Association of Certified Real Estate Agents embarks on this new chapter as a legal entity, it is poised to take on greater accountability and enhance its support for both its members and the consumers they serve. The association’s commitment to fostering a transparent and trustworthy real estate market, while adapting to technological advancements, will be paramount in navigating the future of real estate transactions in Korea.
[관련기사] https://n.news.naver.com/mnews/article/003/0014180639?sid=101
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