The Bidding Market Size for Apartment Complex Management Continues to Grow... Surpasses 6 Trillion Won

[Asia Economy Reporter Moon Jiwon] The Korea Real Estate Board announced on the 25th that the scale of the bidding market related to apartment management exceeded 6 trillion won last year based on the winning bid amount.

According to the bidding statistics for management fee execution within the Apartment Management Information System (K-apt), last year, the electronic bidding method accounted for 1.0997 trillion won, representing 16.51% of the total. In contrast, the qualified evaluation system without electronic bidding accounted for 3.2869 trillion won (49.35%), and negotiated contracts accounted for 2.2739 trillion won (34.14%), showing that non-electronic bidding methods made up 83.49% of the total.

The electronic bidding method has continuously grown since the system was mandated in 2015, surpassing 1 trillion won in winning bid amounts, but its share of the overall market remains low at 16.51%, indicating a need for improvement.

The Korea Real Estate Board plans to improve the system so that the qualified evaluation system, which has a relatively higher possibility of corruption among the winning bidder selection methods, can operate through electronic bidding by introducing a qualified evaluation function into the K-apt electronic bidding system.

Kim Hak-gyu, President of the Korea Real Estate Board, said, "We will continue to advance K-apt to contribute to the transparency of management fees and further strive to introduce a systematic management system for non-residential real estate, which is currently in a management blind spot."

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