If an estate agent’s mistake costs you money, who pays? Article 30 of the Licensed Real Estate Agents Act makes the agent liable for property loss caused to the parties intentionally or negligently, and requires guarantee insurance, mutual aid cover or a deposit before starting business. Decree Article 24 sets the cover at at least 400 million won for a firm (plus 200 million per branch) and 200 million won for an individual. When a deal completes, the agent must explain the amount, guarantor and period and give a copy of the certificate.
1. Property loss caused intentionally or negligently makes the agent liable.
2. Cover: firms 400 million won or more, individuals 200 million won or more, plus 200 million per branch.
3. At completion, you’re told the amount, guarantor and period and get a copy.
Who pays, and when — Act Art. 30(1)–(2)
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Brokering | Property loss to the parties through intent or negligence while brokering | We read wrong explanations as judged here |
| Lending the office | Letting someone else broker from your office, causing loss | The lender is liable too |
How much is covered — Decree Article 24
| Agent | Cover | Worth noting (ours) |
|---|---|---|
| Firm | 400 million won or more, plus 200 million or more per branch | “Or more”: some carry more |
| Individual agent | 200 million won or more | — |
| Others brokering under other laws | 20 million won or more | Para. 3 |
In our example, a firm with two branches needs 400 + 200 × 2 = 800 million won or more. That is the minimum the guarantee must cover; the article doesn’t say liability stops there if the loss is larger (our reading).
Guarantee and explanation — Act Art. 30(3)–(5), Decree Art. 24(2)
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| How | Guarantee insurance, mutual aid under Art. 42, or a deposit | — |
| When | Before starting business, with proof filed at the registering office | Skipped if the guarantor notifies directly |
| Deposits | Can’t be withdrawn for 3 years after closure or death | So claims can still be met |
| At completion | Explain (1) the amount, (2) the insurer, mutual aid body or deposit office and address, (3) the period, and give a copy or e-document | Comes with the contract |
Checklist
- ☐ Is it a registered agency?
- ☐ Did you get a copy of the guarantee — amount, guarantor, period?
- ☐ Does the period cover the contract date?
- ☐ Is the explanation statement signed and sealed?
- ☐ If loss occurs, check how to claim from the agent and the guarantor
Questions that remain
If my deposit isn’t returned, does the agent’s guarantee pay?
Liability covers loss caused by the agent’s intent or negligence. Whether a landlord’s failure to repay involves the agent’s fault isn’t settled by this article; it depends on the facts. Deposit return is in jeonse fraud prevention.
What should I have been told?
The 13 items are in confirmation and explanation statement.
Sources
- Korean law database (law.go.kr) — Licensed Real Estate Agents Act Art. 30; Enforcement Decree Art. 24 — source (Act effective 28 August 2026, No. 21409; checked 19 October 2026). Two liability cases, guarantee methods and timing, 3-year deposit lock, three things explained at completion, cover amounts (firm 400m, branch 200m, individual 200m, others 20m), filing.
- Korean law database — Enforcement Decree (effective 28 August 2026, No. 36590).
- Not read. Act Art. 42 (mutual aid) in detail, Decree Art. 25 (changing the guarantee), mutual aid terms.
- What we added. The “worth noting” column and the Korean everyday gloss.
Where to check further
- The guarantor named on the certificate — claim procedure and papers.
Written on 19 October 2026. The content is from the source; the glosses are ours.
