As the number of "field crews" visiting sites without any intention to purchase for real estate study has increased, the Korea Association of Licensed Real Estate Agents (Korea Real Estate Agents Association) is pushing for the introduction of "field expenses" to charge for field activities, which has sparked controversy.
Kim Jong-ho, president of the Korea Real Estate Agents Association, noted during a press conference after taking office on the 23rd that introducing a "basic compensation system for field activities" requiring payment for licensed real estate agents visiting properties will be a key task for the association this year.
It is under consideration for consumers to pay a certain amount of field expenses in advance when they look at properties with a licensed real estate agent, which would then be deducted from the brokerage fee once a contract is finalized.
The association argues that since labor and services such as counseling and guidance are incurred for field visits, fair compensation is necessary.
Recently, there has been an increase in field crews visiting licensed real estate offices to gather information or study real estate investment, leading licensed real estate agents to face challenges in their business activities.
With a real estate investment craze centered around the 2030 generation, field classes are gaining popularity. Real estate field meetings, which visit licensed real estate offices to look at properties without any intention to buy, sell, or lease and instead to gather information or gain experience, are being sold as products in online communities.
Licensed real estate agents pointed out that as there are more cases like field crews visiting licensed real estate offices without any intention to purchase, landlords and agents are wasting time and effort showing homes and explaining them.
Mr. A, who operates a licensed real estate office in Seoul, said, "About 80 to 90% of total customers are simply browsing and leaving without any intention to buy," and "especially since last year, the number of field crews pretending to be customers has increased significantly and all the time and effort spent explaining and showing homes have gone to waste."
Mr. A added, "In other professional fields such as law and tax, clients consider it normal to pay for even brief consultations," yet he believes, "It is unfair not to pay anything for the time and effort spent to mediate licensed real estate properties."
Conversely, there is a strong opposing view that requiring field expenses every time buyers view properties in the current stagnant real estate market could worsen the image of licensed real estate agents and result in losing more customers.
Park Yong-jin, a licensed real estate agent and CEO of With Real Estate, stated, "There are divided opinions on the introduction of field expenses among real estate agents," noting that some support it, claiming that charging at least 5,000 won could prevent field crews from vanishing after merely acquiring information, while others argue that the negative perception of licensed agents could intensify with the introduction of field expenses.
There is also a perspective that if field expenses are charged, the number of direct transactions in real estate may increase, reducing the roles of real estate agents.
Mr. B, a representative of a licensed real estate office in the Gyeonggi region, expressed concern, stating, "It is not appropriate to introduce a system requiring guests to pay expenses for showing a home when a contract has not even been established," adding, "There are already many licensed agents without work, and if field expenses are charged, it could worsen the image and lead to an increase in direct transactions in real estate."
According to data received by Yoon Jong-gun, a member of the Democratic Party of Korea, the number of direct transactions completed on Carrot Market last year reached 59,451. This represents more than a 200-fold increase in three years compared to 2021 (268 transactions).
In online communities, various opinions are emerging, such as stating that if the field expense system is introduced, it should be shared not only with licensed real estate agents but also with homeowners and tenants showing properties, or questioning if customers would need to pay every time they try on clothes in a clothing store.
Abroad, in the United States and Japan, it is necessary to confirm the intent to purchase in advance and complete paperwork before being allowed to view brokerage objects.
Kwon Dae-jung, a professor at the Graduate School of Real Estate at Sogang University, explained, "Under current domestic licensed real estate laws, expenses like transportation can be charged when visiting properties that are far from the office at a client's request," and added that "in advanced countries such as Germany, Japan, the United States, and China, there is no practice of charging separate field expenses, and they operate under a cost-reimbursement system similar to that in Korea."
To introduce the field expense system, legal amendments and consultations with the Ministry of Land, Infrastructure and Transport are required.
The Ministry of Land, Infrastructure and Transport believes that introducing the field expense system would be excessive.
A ministry official noted, "The Korea Real Estate Agents Association has not formally proposed the introduction of the field expense system to the ministry yet," adding that "It is currently difficult to push forward due to substantial negative public opinion, and even if it were introduced, it seems unlikely to operate effectively, as competition is fierce, with some opting not to collect field expenses."