Korea Association of Realtors(KAR) said on the 27th it deeply regretted reports that some licensed real estate agents took part in price collusion and closed operations centered on private information networks, and that it would launch strong self-cleansing efforts to create a sound real estate market environment.
The association argued that the matter stemmed from the "institutional limits of the industry's self-regulatory functions" that have been raised during the push to become a statutory organization.
An association official said, "Collusion and exclusion of nonmembers centered on some private information networks are issues the association has continuously worried about," adding, "The reason the association has strongly requested the government and the National Assembly to adopt mandatory membership and grant supervisory and enforcement authority was also to proactively crack down on and expel such market-disrupting acts at the association level."
It explained that, under the current voluntary association structure, there is no practical authority to investigate collusive cartels, and even in cases of violations, there is a lack of compulsory sanctions, limiting the ability to control the deviations of a few.
As an alternative to break the closed collusive structure, the association pointed to activating the government-certified real estate information network "Hanbang." Hanbang is a program that currently handles not only the sharing of listing information and customer management among most practicing licensed real estate agents, but also the overall brokerage workflow, including drafting contracts and property disclosure forms. The association plans to further advance Hanbang and concentrate its organization-wide capabilities on building an environment where transparent and fair transaction is possible without relying on private information networks.
In addition, the association expressed agreement with the government's policy direction to create a transparent and sound real estate market and made clear it would actively cooperate.
Association President Kim Jong-ho said, "It is very regrettable that, due to the improper acts of a few, most decent licensed real estate agents who diligently carry out their duties in the field are being criticized together," adding, "We will fulfill our responsibility as a public organization."