Realtors receive brokerage fees from a client including costs for confirming facts related to ownership of the real estate concerned in the process of purchase, sale or lease of the real estate.
– However, the realtor cannot receive brokerage fees, if the real estate transaction was
nullified or cancelled due to the negligent or intentional action of the realtor.
In principle, the commission rate paid to realtors depends on the price at which the property is sold or purchased. The amount of commission is calculated by multiplying the price of the property by the commission rate. However, there exists a maximum limit to the amount of commission. Even if the calculated commission exceeds the maximum amount, then only the maximum amount of commission needs to be paid to the realtor.
The commission rate for general residential buildings and housing is as follows:
Purchase / Sale | |
Amount | Commission Rate |
Less than KRW 50 million | 0.6% (max. KRW 250,000) |
KRW 50 ~ less than 200 million | 0.5% (max. KRW 800,000) |
KRW 200 million ~ less than 600 million | 0.4% |
Lease / Rent | |
Amount | Commission Rate |
Less than KRW 50 million | 0.5% (max. KRW 200,000) |
KRW 50 ~ less than 100 million | 0.4% (max. KRW 300,000) |
KRW 100 million ~ less than 300 million | 0.3% |
The commission rate is determined separately through mutual agreement by the client and realtor (between 0.2 ~ 0.9% for sales/purchase and 0.2 ~ 0.8% for lease) for residential buildings and property of over KRW600 million purchase price or over KRW300 million lease price or for property that is non-residential in nature.
