Korea Association of Realtors Promotes 'Relative Evaluation' for Exam... Ministry of Land, Infrastructure and Transport Says "No Review"

450,000 Licensed Real Estate Agents... 1 per 115 People
Switching to Relative Evaluation Likely to Naturally Reduce Numbers
Licensed Real Estate Agents Exceed Appropriate Level, Increasing Social Costs
However, Ministry of Land Opposes... "Competition is the Principle"

Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Moon Jiwon] The Korea Association of Certified Realtors is reportedly planning to request the government to change the certified realtor exam to a relative evaluation system. The rationale is that since there are currently an excessive number of realtors, the exam system should be changed to gradually reduce the number of successful candidates. However, the Ministry of Land, Infrastructure and Transport, the competent authority, has stated that it has "no plans to review" this, so a conflict of opinions between the two sides is expected.

According to the industry on the 2nd, the association has set a plan to actively promote the 'Five Key Tasks for Improving the Certified Realtor System,' including switching the certified realtor exam to a relative evaluation system this year. Currently, about 450,000 people hold certified realtor licenses, which equates to one person per 115 population, making supply and demand adjustment inevitable, according to the association.

In fact, only 23.5% (106,000 people) of those holding the license are working as practicing certified realtors. The realtor industry has increasing complaints that the number of practicing certified realtors exceeds an appropriate level, causing overheated competition and repeated openings and closings of businesses.

The association believes that if the number of successful candidates is fixed annually and the exam is conducted on a relative evaluation basis, supply and demand can be controlled. In fact, from 1990 to 1997, during the 5th to 9th exams, a relative evaluation system was introduced, producing an average of 2,396 realtors. Compared to last year's 30th exam, which had about 27,000 successful candidates, this is less than 10%.

The association stated, "It is necessary to avoid inconsistent exam system operations and reform the qualification system in a direction that fosters real estate experts," adding, "For assistant housing managers, the system was absolute evaluation, but it switched to relative evaluation starting this year."

The association's move to make the relative evaluation exam issue a point of contention seems to be influenced by recent confidence gained from blocking the government's plan to mandate the disclosure of brokerage fees. Previously, the Ministry of Land, Infrastructure and Transport planned to enforce a revision to the Certified Realtor Act Enforcement Rules from the 21st, requiring mandatory disclosure of brokerage fees in real estate transaction contracts, but it was ultimately scrapped due to opposition from realtors during the legislative notice period.

However, the Ministry of Land, Infrastructure and Transport maintains that it has no plans to review the exam system reform. Not only the certified realtor exam but many other exams have recently been shifting from relative evaluation to absolute evaluation in accordance with the principle of freedom of occupational choice. Moreover, the government's basic stance is to increase competition among realtors to stabilize brokerage fees and other factors.

A Ministry of Land, Infrastructure and Transport official said, "It is unreasonable to say that social costs increase because there are many successful candidates," adding, "If the number of successful candidates increases, the number of high-quality certified realtors who can actively work may also increase, so this should not be viewed from one perspective."

This content was produced with the assistance of AI translation services.