Real Estate 114 will be absorbed and merged into HDC LABS of the HDC Group next month. HDC LABS is a general management corporation in construction and real estate, wholly owned by HDC, the holding company of HDC Group, and its major shareholders, Chairman Chung Mong-kyu of HDC Group. Established in 1999 during the IMF financial crisis, Real Estate 114 has significantly influenced the construction of databases in the domestic real estate market and the spread of online transactions. Experts who have worked at Real Estate 114 are active in academia, financial institutions, and real estate market research companies.
According to the real estate industry and the Financial Supervisory Service on the 28th, Real Estate 114, a real estate specialist portal site, will be absorbed and merged into HDC LABS of the HDC Group on April 30. This marks the first merger since it was incorporated into HDC Group about seven years ago.
HDC LABS will absorb all business operations related to Real Estate 114, including its brokerage platform and real estate data institutional sector, by signing a sales transfer contract. The purchase amount is 636 million won. A spokesperson for HDC Group noted, "This decision is to improve governance and integrate management organizations to enhance management efficiency." Real Estate 114 is a corporation equipped with a vast database of the real estate market and a wide-ranging brokerage network, engaging in business such as property registration platforms, data sales, research, consulting, and rental services.
Real Estate 114 was founded based on 'Modoonet,' established in 1999. Dr. Lee Sang-young, who worked at the Korea Development Institute, the Construction Industry Research Institute, and Real Estate Bank, founded it. In 2001, the corporate name was changed to Real Estate 114, and in 2008, it was acquired by Mirae Asset Capital and Mirae Asset Consulting, becoming part of the Mirae Asset Group. In 2018, it was acquired again by Hyundai Development Company and HDC ICONTRONICS (now HDC LABS) for 63.7 billion won. Professor Lee Sang-young recalled, "In the early days, there were about 35,000 real estate brokerage firms nationwide, and at a time when the internet was being disseminated, these firms also needed to register real estate properties on their websites, and Real Estate 114 primarily engaged in creating websites for brokerage firms and establishing a brokerage network."
Many experts who have passed through Real Estate 114 are still active, including Ham Young-jin, head of the real estate research lab at Woori Bank; Kim Eun-sun, head of the big data lab at Zigbang; and Kim Kyu-jeong, head of the asset succession research institute at Korea Investment & Securities.
In the industry, there are voices expressing regret at the disappearance of a company that has long been associated with the ups and downs of the real estate market. There are also expectations that there will be synergies as it becomes part of HDC Group's organization. One source said, "It is regrettable that a company that has played a significant role in the online brokerage system and database construction of the domestic real estate market for a long time is disappearing." Professor Lee Sang-young commented, "The absorption and merger of Real Estate 114 are related to the general difficulties faced by PropTech companies and the slump in the construction market," while expressing hope that there will be synergies as part of HDC LABS.