The national real estate agency sector is entering a phase of decline, with closures outpacing new openings for the third consecutive year, marking the end of the era of 110,000 licensed real estate agents. As the stagnation in real estate transactions continues, the number of new entrants is also sharply decreasing, leading to a significant structural contraction in the industry.
According to the Korea Association of Licensed Real Estate Agents, the number of active real estate agents peaked at 118,952 in 2022 but fell to 115,071 in 2023 and further to 111,877 in 2024.
Industry analysts attribute the recent decline in the number of real estate agents to a sharp decrease in new openings rather than an increase in closures. New openings have plummeted from around 20,000 in 2017 to just 9,152 last year, representing a decline of more than half in eight years.
The enthusiasm for the real estate agent qualification exam is also waning. In October of last year, 148,004 applicants registered for the exam, marking the first time since 2016 that the number fell below 200,000. Once viewed as a stable source of income for middle-aged individuals seeking a second career after retirement, there is now a growing trend of potential entrants abandoning the idea of entering the market altogether.
A significant factor contributing to this decline is the sharp drop in commission income, which is the primary revenue source for real estate agents. The tightening of government loan regulations, policies focused on actual residence, and the expansion of land transaction permit zones have led to a slowdown in both sales and rental transactions, destabilizing the income base for the agency sector.
Real estate agents earn commissions when transactions are successfully completed. They can charge fees within the legally mandated limits for sales or rental agreements, but if no transactions occur, they do not generate any income.
Seojin Hyung, a professor at Kwangwoon University’s Department of Real Estate Law, stated, "Due to the mandatory residence requirement and loan regulations, it is now difficult to buy or sell properties even if one wants to. The significant drop in transaction volume has worsened the management of real estate agencies, and with stricter regulations on multiple homeowners, it will be challenging to improve the market conditions in the near future."
Shin Kwang-moon, a senior researcher at the Korea Association of Licensed Real Estate Agents, noted, "The primary reason for the deteriorating conditions in the real estate agency sector is the decrease in available listings. With transactions declining, operational costs such as advertising continue to rise, and recently, the proportion of direct transactions has increased, leading to more agencies unable to sustain themselves and closing down."
* This article has been translated by AI.
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