Interview = Editor-in-Chief Kim Jae-hong / Summary = Reporter Lee Sang-hyuk / Photo = Reporter Kim Dong-hyeon

In Korea, real estate is considered the number one asset and standard of wealth. However, the market environment for trading it is evaluated as being underdeveloped compared to other developed countries.

Brokerage agencies scattered across the country and excessive government regulations are acting as factors that hinder the specialization of the real estate brokerage industry. In addition, it is an unfortunate reality that there is no proper system in place to provide relief even if the parties involved in a real estate transaction suffer unfair damages.

In this situation, there is a company that has set out to advance the real estate brokerage market through globally proven know-how. It is a company called 'Remax Korea', which CEO Shin Hee-seong (50) founded in 2013 after signing a partnership agreement with Remax LLC, the world's largest real estate company in the United States.

[Business Report] met CEO Shin at the Remax Korea office in Yeoksam-dong, Seoul on the afternoon of the 24th and had an exclusive interview about his management philosophy and business goals.

▲ On the afternoon of the 24th, CEO Shin Hee-seong was interviewed by [Business Report] at the Remax Korea office in Yeoksam-dong, Seoul, explaining management philosophy and business goals.

- I understand that you have accumulated considerable experience in the real estate brokerage market. Please briefly introduce your background.

“I’ve been working in commercial real estate since 2004, so it’s been 12 years. My previous job was at a company affiliated with a large corporation, but I left the company for health reasons and worked in a textile-related business overseas for several years. However, as the market situation was not good due to the aftermath of the IMF, etc., I was looking for another job and ended up joining forces with Choi Yun-seok, CEO of Wide Partners, who is my junior. “During my 10-year career, I have worked in various fields such as sales, purchasing, and planning, so this is a great help in adapting to real estate work.”

- There are many brokerage companies. What kind of company is Remax Korea?

“American Remax LLC (hereinafter Remax) is the world's largest real estate franchise company, established in 1973 and has presence in over 90 countries around the world. It is a global company with over 6,700 offices and 100,000 employees worldwide. Remax Korea is a corporation established in 2013 to introduce advanced systems and expand franchise business by signing a master franchise agreement with Remax.”

- Is there a reason you chose Remax among many global real estate brokerage companies?

“I was attracted to the company because it is a global brand and because we (Wide Partners) have strengths in the vulnerable housing market. But more than anything, the most important selection factor was whether they could share their philosophy with us. “The timing was good because Remax had not yet entered the Korean market.”

- How are the business areas of the existing Wide Partners and Remax Korea divided?

“Wide Partners is a real estate brokerage company specializing in the commercial and industrial markets such as buildings and factories, and a company that provides asset management consulting necessary for real estate brokerage. On the other hand, Remax Korea is a company that conducts franchise business rather than direct brokerage. In other words, Remax’s most important customers are brokers. In particular, Remax has strengths in the residential market, so the two companies are creating synergy effects.”

- It seems like there must have been quite a few difficulties in establishing Remax Korea.

“At the time, Remax was planning to enter China, Japan, and Korea in that order. However, after personally visiting them, making suggestions, and conducting interviews, we were able to be selected as a partner first. “When Remax Chairman Liniger asked in an interview why he wanted to partner with us, he answered that Remax’s vision and philosophy were the best, and that impressed him deeply.”

- Is there a differentiated service unique to Remax Korea?

“We believe that safe transactions are more important than anything else, so we provide title insurance services. You can think of it as insurance that protects against issues related to ownership. Also, I don’t think there is any organization that can follow Remax in terms of how overseas networks revolve around people, not companies.”

Last January, Remax Korea signed a 'business agreement to provide real estate title insurance and related services' with First American Title Insurance, the largest title insurance company in the United States. Real estate rights insurance is intended to protect real estate buyers or lessees from unexpected real estate damage. It is insurance that compensates for losses incurred by buyers or lessees due to problems in exercising real estate rights.

- Could you explain the human-centered network in more detail?

“In Remax, the salesperson, or broker, rather than the company, takes the maximum profit. Our motto is to bring together the best and produce more results, and through that, our goal is to achieve customer satisfaction. Although 43 years have passed (since the company was founded), it is important that this philosophy remains consistent. In detail, there are countless systems for brokers, including satellite and internet training. One thing that runs through this is making sure brokers make a good living.”

- How is the real estate brokerage market environment in Korea compared to developed countries such as the United States?

“(Korea’s brokerage market) is less developed than not only the United States but also China. In particular, the problem is that the Brokerage Business Act and the Franchise Business Act are strictly regulatory. For example, only the representative of the brokerage firm is allowed to sign a contract. Even though he is a licensed real estate agent, he cannot get a seal. It can be seen that everything was created around a very small business. Additionally, Korea is the only country that regulates brokerage commission rates by law. “We need to reorganize the law as soon as possible to pave the way for the specialization and expansion of brokerage firms.”

- Now and then, there are many people in our country who want to accumulate wealth through real estate. Is there anything you would like to emphasize (or keep in mind) to real estate investors?

“You have to put in the effort to find a good agent. Brand and office size may be important, but the most important thing is 'how much constant attention the agent gives me.' Even though 70% of our country's assets are concentrated in real estate, not many people seem to be concerned about this. “I emphasize again that you must choose someone you can trust, and once you have chosen them, you must trust them.”

- It looks like you have a lot of work to do in the future. What are your plans?

“We currently have 7 franchises, and our goal is to increase the number to 400 in the long term and lead the way in an advanced market environment. “I hope that our agents will learn well and help grow their own businesses, and that the network will expand by producing excellent agents and spreading them across the country.”

The management philosophy emphasized by Remax is ‘Everybody Wins.’ “I want the company, employees, and customers to all win,” said CEO Shin with a bright smile, showing strong confidence and sincerity.

Reporter Lee Sang-hyuk pressh@naver.com