Number of Newly Opened Licensed Real Estate Agents in January Drops from 2,550 to 870, Record Low

The number of newly opened licensed real estate agents in January hit an all-time low, dropping below 1,000 for the first time ever. Traditionally, January is the busiest month for new openings, especially among those who passed the previous year's exam. However, the number of new agencies opening in both Seoul and regional areas has sharply declined. This is analyzed as a result of the prolonged real estate market slump deeply affecting the industry.

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According to the Korea Association of Realtors on the 11th, only 870 licensed real estate agents opened new offices in January. This is the lowest January figure since related statistics began in 2015. Compared to 1,118 in January of the previous year, this marks a 22.1% decrease. During the same period, the total number of agents who closed (852) or suspended (118) their business reached 970, exceeding the number of new openings.

In January 2018, during the real estate boom, the number of newly opened agents reached as high as 2,550. However, after dropping below 2,000 in 2021, the number has steadily declined, finally falling below 1,000 this January. The decrease in agents was seen across the country. Of the 19 branches of the Korea Association of Realtors, all but Jeonnam and Jeju saw a year-on-year decrease in new openings. Some regions saw their numbers halved compared to January 2024, such as Daegu (from 59 to 24) and Daejeon (from 34 to 16).

The decline in real estate transactions is the main reason for the drop in popularity. During the real estate boom in 2020 and 2021, the number of housing transactions exceeded 1 million, but it plummeted to around 500,000 in 2022. Although there has been a slight recovery over the past two years, last year’s 642,576 transactions remain far below the peak. The popularity of the licensed real estate agent exam, once dubbed a "national certificate," is also waning. The number of applicants dropped from 399,975 in 2021 to 215,081 last year?almost half.

Due to domestic and international adverse factors such as economic recession and sluggish domestic demand, the number of small business closures is rapidly increasing, and vacant stores are lined up in a commercial area densely packed with shops in Sinchon, Seoul.

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The increase in direct transactions has also played a role. According to data obtained by the office of Rep. Bok Giwang of the National Assembly's Land, Infrastructure and Transport Committee from the Ministry of Land, Infrastructure and Transport, out of 3,186,963 real estate transactions completed between November 2021 and August last year, 54.2% (1,728,659) were brokered by agents, while 45.8% (1,458,304) were direct transactions. Brokerage and direct deals are now almost evenly split. On the leading secondhand trading platform Danggeun Market, real estate transactions soared from just 268 in 2021 to 34,482 last year?a more than 100-fold increase in three years.

A representative of the Korea Association of Realtors analyzed, "The realtor market has relatively contracted due to the 'transaction cliff' and an increase in direct transactions." However, they explained, "Many direct transactions are conducted through unregistered or illegal realtors, so we are preparing related countermeasures." Photo by Getty Images Bank

A representative from the Korea Association of Realtors analyzed, "The 'transaction freeze' and the increase in direct transactions have relatively shrunk the brokerage market." However, they explained, "A significant number of direct transactions are conducted through unregistered or illegal brokers, so we are preparing countermeasures." Under current law and legal precedents, one-time unregistered brokerage activities are not penalized. The association plans to push for legislation to ban any brokerage activities by non-licensed individuals, even if it is a one-time occurrence.