Bucheon City Council Member Faces Prison for Collecting 22 Times the Legal Brokerage Fee: The Scandal Shaking Korean Real Estate

A Shocking Case: 22 Times the Legal Brokerage Fee

Did you know that a city council member in Bucheon, who also worked as a licensed real estate agent, is currently facing a one-year prison sentence for charging a tenant more than 22 times the legal brokerage fee? In April 2020, this council member brokered a villa rental contract with a deposit of 150 million KRW (about $110,000 USD), but instead of the legal maximum fee of 495,000 KRW, he collected a staggering 11,199,000 KRW. This case has ignited public outrage and brought attention to the ongoing risks of real estate fraud in Korea.

Legal Limits and How They Were Broken

Korean law is strict about real estate brokerage fees, setting clear maximum rates depending on the transaction amount. For a 150 million KRW rental, the legal cap is 0.3%, which comes to 495,000 KRW. However, the Bucheon council member ignored these regulations and demanded a fee 22 times higher, blatantly violating the Licensed Real Estate Agents Act. Such actions are not just illegal—they directly harm tenants, many of whom are already vulnerable in Korea's competitive housing market.

The Victim’s Plight: From Overcharged to Rental Scam

The tenant, known as B, not only paid the excessive fee but later became a victim of a rental scam. After the contract, B was unable to recover their deposit from the villa owner—a scenario all too common in Korea, where 'jeonse' (large-sum deposit rentals) scams have devastated many families. This double blow—first by the broker, then by the landlord—has fueled calls for stronger protections for renters and harsher penalties for unethical agents.

Courtroom Drama and the Prosecutor’s Stand

On June 27, 2025, the Bucheon District Court held a sentencing hearing. Prosecutors demanded a one-year prison term, emphasizing that the council member’s actions not only broke the law but directly contributed to the tenant’s financial loss. The final verdict is scheduled for September 19, and the case is being closely watched by both the media and the public. The prosecution’s stance is clear: public officials must be held to the highest ethical standards, especially when they wield dual authority as both lawmakers and service providers.

How Korean Communities Reacted Online

Online communities like DC Inside, FM Korea, and PGR21 exploded with reactions. On Nate and Daum, top comments ranged from anger—'How can a city council member be so greedy?'—to cynicism—'Is anyone surprised? Politicians are all the same.' Some users on Instiz and TheQoo demanded harsher punishments, while others worried about the damage to public trust. A few voices, however, questioned whether the tenant had enough information about legal fees, highlighting the need for better public education on real estate transactions.

Cultural Context: Why Brokerage Fees Matter in Korea

For foreign readers, it’s important to understand the unique Korean real estate system. The 'jeonse' system requires tenants to pay huge deposits up front, making them especially vulnerable to scams. Brokerage fees are strictly regulated to protect both parties, but enforcement can be weak, especially when brokers hold political power. This case is part of a larger pattern of real estate controversies that have shaken public confidence in both the housing market and local government.

What Bloggers and Experts Are Saying

Recent Naver and Tistory blog posts dissected the legal details and offered advice for tenants. Bloggers emphasized the importance of confirming brokerage fees in writing and using government apps like the Safe Jeonse App, which provides transaction risk assessments and legal counseling. Some blogs highlighted Bucheon’s support programs for scam victims, including legal aid and financial assistance for young renters. Experts warn that as long as loopholes and conflicts of interest exist, similar scandals may continue to surface.

The Broader Impact: Trust, Policy, and the Future

This scandal has reignited debates about the dual roles of public officials and the need for stricter separation between politics and business. It also spotlights the ongoing rental scam crisis in Korea, prompting calls for more transparent real estate practices and better tenant protections. The outcome of this case may set a precedent for how seriously Korean courts treat abuses of power in the real estate sector, and could lead to changes in both law and public policy.

What Can Tenants Do? Practical Tips and Resources

If you’re renting in Korea, always check the legal maximum brokerage fee for your contract amount—resources are available through the Korea Association of Realtors and local government websites. Demand a written breakdown of all fees before signing. If you suspect overcharging or fraud, report it to local authorities or use the Safe Jeonse App for legal support. For those affected by scams, Bucheon and other cities now offer counseling, legal aid, and even financial support for young renters facing deposit loss.