City asks Korea Real Estate Agents Association to adopt self-regulatory measures
![Rental listings are posted outside a real estate agency in Songpa-gu, Seoul. [Yonhap]](https://wimg.heraldcorp.com/news/cms/2026/09/21/rcv.YNA.20260831.PYH2026083109500001300_P1.jpg)
The Seoul Metropolitan Government said Tuesday it will step up its response to unfair brokerage practices by licensed real estate agents that unlawfully restrict tenants' rights during lease negotiations.
The city announced it will pursue what it called the "establishment of a fair brokerage culture" to eliminate practices in which some licensed agents prioritize their relationships with landlords — often to secure a steady supply of listings — and steer tenants into contracts that are one-sidedly disadvantageous.
The city said demands have been reported in the field, including agents telling tenants that a lease will only be arranged if the contract term is set to one year, or that tenants must cover the landlord's brokerage commission if they wish to vacate early.
Specific cases cited include agents pressuring tenants to rewrite an existing two-year lease as a series of one-year contracts on the pretext of raising the monthly rent, and agents shifting the landlord's brokerage commission onto tenants during tacit renewal periods when tenants are entitled to leave without fault.
Going forward, when complaints arise over residential lease contracts, the city said it will investigate whether terms unfavorable to tenants resulted from mutual agreement between the parties or from an agent improperly restricting tenants' rights during the brokerage process.
When a transaction contract containing terms that violate the Housing Lease Protection Act is drawn up, the city will assess on a case-by-case basis whether the agent engaged in unfair brokerage conduct. Agents who fail to adequately verify and explain the property may face a fine of up to 5 million won ($3,610), while those who provide false or misleading information may face license suspension and criminal charges.
Complaints can be filed with the Seoul Metropolitan Government's response center or the real estate brokerage division of each district office, and should be accompanied by supporting documents such as the contract, the property verification and explanation form, and text message records.
Alongside regulatory enforcement, the city plans to push for self-regulatory efforts within the brokerage industry. It said it will convey its policy of strict action against unfair brokerage practices to the Korea Real Estate Agents Association — which recently gained status as a statutory body — and ask the association to develop self-regulatory measures to correct improper transaction practices.
The city also said it will ask the industry to improve brokerage culture on the ground, so that agents do not exploit tenants' lack of awareness of their own rights to pressure them into accepting unfavorable terms.
The city will continue its outreach real estate education program tailored for young people and those entering the workforce, offering guidance on safe contracting practices and available housing support programs. This year, six sessions have been held for 708 participants. A regular session is also scheduled for November.
"Real estate contracts directly affect citizens' homes and assets, so no party's rights should be unfairly restricted during the process," said Kim Chang-gyu, head of the Seoul Metropolitan Government's Urban Space Bureau. "We will respond firmly to unfair brokerage practices that limit tenants' rights, and strengthen education and information services so that citizens can understand their legitimate rights and enter contracts safely."
quq@heraldcorp.com
