"Blind Integration Is Breach of Trust"... Realtor Association's Legal Entity Status Sparks Internal Conflict

Association to Pursue Integration with SaeDaehan... Resolution at Delegate General Meeting on 20th
Affiliated Licensed Realtors Say "No Basis for 2.5 Billion Won Integration Cost"

View of a certified real estate agent office in Songpa-gu, Seoul / Photo by Yonhap News

[Asia Economy Reporter Noh Kyung-jo] The Korea Association of Certified Realtors (hereinafter the Association) is facing controversy during its merger process with the SaeDaehan Association of Certified Realtors (hereinafter SaeDaehan) to become a statutory organization. The main issue is the 'integration cost of 2.5 billion KRW' that the Association is scheduled to pay to SaeDaehan.

Certified realtors (members) affiliated with the Association have questioned the procedural legitimacy and pointed out that paying the money without sufficient consensus constitutes a 'breach of trust.' Not only general members but also within the executive body, disagreements remain unresolved, leading to speculation that the merger is a kind of deal between some factions on both sides based on SaeDaehan's 'voluntary dissolution.'

According to the real estate brokerage industry on the 19th, the Association plans to hold an extraordinary delegates' meeting on the afternoon of the 20th to finalize the merger with SaeDaehan and detailed plans. An Association official said, "Regardless of SaeDaehan's size, integration is necessary for the passage of the amendment to the Certified Realtors Act," adding, "It will also help realtors to speak with one voice."

He continued, "It is true that there was talk about paying a certain amount to SaeDaehan as a representative justification, but the exact amount has not been decided," adding, "It will be discussed at this general meeting."

The amendment was introduced on the 4th by Kim Byung-wook, a member of the Democratic Party. It stipulates that the Association will become a statutory organization, and certified realtors who wish to register must mandatorily join the Association.

The Association is rushing the merger with SaeDaehan, saying it is essential to become a statutory organization. When Jin Sung-jun, a Democratic Party member, introduced an amendment last year focusing on 'mandatory membership in the Association,' the National Assembly Land, Infrastructure and Transport Committee opposed it, saying, "Professional qualification organizations that mandate membership, such as the Bar Association and the Tax Accountants Association, are recognized as statutory organizations only if they are single organizations," and "Since multiple associations already exist in the brokerage industry, it could cause internal confusion."

However, members have opposed this as an 'unfounded fear.' They also criticized the controversial integration cost of 2.5 billion KRW, which was passed by the board on the 27th of last month and then submitted to the general meeting, calling it a 'blind integration.' They argue that the merger is being pushed forcibly, even though it is not a prerequisite for the amendment's passage, with a minority of delegates claiming to have received promises from the Ministry of Land, Infrastructure and Transport.

A certified realtor affiliated with the Association said, "If a merger is to happen, the consent of all members must be obtained, and the Association president must transparently disclose the merger process and agreement details," adding, "There is no guarantee that the amendment will pass 100%, so giving away 2.5 billion KRW (from membership fees) is absurd. Would they do that if it were their own money?"

This is not the first merger for the Association. The current Association absorbed the Korea Association of Certified Realtors (hereinafter Daehan) in 2007. At that time, no separate payment was made to Daehan, and it is known that Daehan completed its own liquidation before merging. An Association official explained, "Currently, SaeDaehan operates an education center, and severance pay for employees must be settled. Times have changed. We cannot just tell them to close down."

Meanwhile, voices of concern and division between support and opposition are also emerging within SaeDaehan. A SaeDaehan official said, "Many certified realtors who find the Association's membership fees burdensome come to SaeDaehan," adding, "It is natural to choose according to one's circumstances (considering fees, etc.), and for mutual checks and balances, there should be two associations. It is deplorable to legislate to grant exclusive status to only one organization."

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