South korean agents to strike over commission cut

South Korean agents are going on strike over government proposals to cut their commissions by half.

Under the current law, agents charge fees below 0.3 per cent (for homes worth between 100 million and 300 million won) and 0.8 per cent for homse worth above 300 million won.

New proposals, though, would halve brokerage fees, a plan that arrives just as a new service enters the market: KakoaTalk Real Estate, which lets people use smartphones on KakoaTalk to buy property with a commission of just 0.2 per cent, significantly undercutting the agent industry.

In response, members of the Korea Association of Realtors are being asked to shut up shop between Monday 24th November and Sunday 30th November.

Source: KoreaBizWire (via OPP ConnectiOn)