[사설]Brokerage fees amid skyrocketing house prices, hurry to cut sharply

The National Rights Commission yesterday came up with a plan to improve housing renovation and brokerage services. The Kwonik Committee recommended the Ministry of Land, Infrastructure and Transport and 17 regional governments to prepare a final improvement plan according to this plan. The key to this improvement is to adjust the rate range for each transaction amount while lowering brokerage fees.

Until now, disputes between brokers and clients over the brokerage repairs that have risen due to soaring house prices have not ceased. The service remains the same, but complaints about the excessive commission also increased. It is natural to adjust the brokerage and repair system according to the rising house price.

Currently, the brokerage fee is set at 0.9% for sales of 900 million won or more and 0.8% for rental of 600 million won or more, and the broker and the client are required to discuss. For transactions less than that, up to 0.6% is applied differentially by amount. This system was slightly adjusted in 2015, but the framework was set 21 years ago. Even though the median price of apartments in Seoul reaches 950 million won, maintaining the highest rate above 900 million won is far from reality. If the highest rate is applied, the brokerage fee for both buying and selling is 18 million won when trading a 1 billion won apartment in Seoul. In reality, the remuneration is lowered through consultation in most cases, but it seems excessive just that a remuneration of 10 million won per transaction is possible. Along with the cuts in brokerage fees, the difference between sales and rental rates should also be adjusted. Currently, the brokerage fee for rental is higher than for sale in some price ranges. There is no reason a tenant should pay a higher brokerage fee than a buyer. The three positions of selling, buying, and brokering housing transactions are all different and are subject to conflict. It is also reasonable to appeal from brokers that if they do not reach the final contract, they will not be paid for services. The Ministry of Land, Infrastructure and Transport and regional governments need to lower the steep brokerage fees, re-adjust the rate section precisely, and stipulate various brokerage services and their costs. It is worth considering a system in which brokerage fees are agreed in advance between the broker and the client.