Why Are Certified Real Estate Agents, Once a Popular Job for All Ages, Closing Their Businesses?

Over 2,000 Businesses Closed Nationwide in One Year as of July
Transaction Volume Plummets... "Real Estate Recovery Limited to Apartments"

The number of licensed real estate agents, once regarded as one of the most popular professions, has been steadily decreasing. This appears to be due to the lack of increase in transaction volume despite the recovery trend in the real estate market.

According to the Korea Association of Realtors on the 26th, as of July, the number of licensed real estate agents operating nationwide was counted at 116,976. This is the first time since January last year (117,266) that the number of operating licensed real estate agents has fallen below 117,000.

Last year, as the real estate market gained momentum, the number of licensed real estate agents increased to a record high of 118,938 in July. However, it has been declining since then, dropping to 117,583 in December last year, and continuing to decrease this year. As of July, about 2,000 agents have closed their businesses in one year.

From January to July, more than 100 licensed real estate agents chose to temporarily close their businesses each month. On the other hand, the number of newly opened licensed real estate agencies has not reached 1,000 since June.

This phenomenon, despite recent signs of recovery in the real estate market, is due to the decrease in transaction volume.

According to the weekly apartment price trend for the third week of August announced by the Korea Real Estate Board on the 21st, apartment prices in Seoul have risen for 14 consecutive weeks since the fourth week of May. Prices in provincial areas have also turned upward for the first time in 68 weeks, and jeonse (long-term lease) prices are rising not only in Seoul but nationwide.

[Image source=Yonhap News]

However, this is limited to apartments, and overall transaction volume has actually decreased significantly. According to the nationwide housing transaction trend for June announced by the Ministry of Land, Infrastructure and Transport at the end of last month, the number of housing sales nationwide was 52,592, down 4.7% from the previous month (55,176). The cumulative total from January to June was 274,608, down 11.5% compared to the same period last year (310,260).

The volume of jeonse and monthly rent transactions in June was also 213,265, down 23% from the previous month (276,950). The cumulative transactions from January to June were 1,461,664, down 6.9% compared to the same period last year (1,570,467).

An official from the Real Estate Association analyzed, “The income of licensed real estate agents is directly linked to transaction volume,” and added, “It seems that many have chosen to close or temporarily suspend their businesses due to the expectation that transactions will remain sluggish in the future.”

The popularity of the licensed real estate agent certification, which was once a popular profession among people of all ages and genders, is also gradually fading.

Until 2021, the licensed real estate agent qualification exam attracted a record high of 408,492 applicants. This was close to the scale of the College Scholastic Ability Test, which has over 500,000 test takers. Notably, 39% of the examinees at that time were young people in their 20s and 30s. As large company recruitment decreased and employment difficulties due to COVID-19 overlapped, young people sought the licensed real estate agent exam as a breakthrough.

However, according to the Human Resources Development Service of Korea on the 14th, 387,705 people registered for the 33rd licensed real estate agent qualification exam last year, combining both the first and second stages. This year, the number dropped again by 94,712 to 292,939.

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