[Remax Korea Brokerage Map]"Overcoming the closed brokerage market with master franchises"① Shin Hee-seong, CEO of Remax Korea, “Breaking down the apprenticeship system and providing advanced programs”Reporter Jeon Ki-ryongPublished 2024-08-22 07:43:05 [Editor's Note] The growth engine of Remax Korea is its global system and know-how. The headquarters, which grew through the master franchise method, is responsible for providing franchisees with management systems recognized in the global market. Franchisees are receiving consulting know-how based on data accumulated in the global market along with the brand power of Remax. Recently, synergy between franchisees is also in full swing. The Bell will take a look at the headquarters of Remax Korea and its major franchisees, which have continued to grow rapidly.
This article was last updated on August 20, 2024 at 07:20 thebell This is an article that appeared in .
"From the time I started the brokerage firm, I had been trying to make it bigger. I foresaw that only when brokerage firms become bigger would they be able to create a good working environment for market participants and an environment where they would be respected. At that time, I learned about the franchise system of RE/MAX, a global brand. At that time, RE/MAX's corporate culture and advanced systems best suited our goals."
Shin Hee-seong, CEO of RE/MAX Koreapicture) explained the reason for choosing the Remax brand in an interview with The Bell. At the time, applying a global brand to the brokerage market, which was in the form of individual businesses, was considered risky. The concept of franchise was also unfamiliar.
Remax Korea used to be like that, but now, under the slogan of pursuing the interests of franchisees, brokers, and customers (Everybody wins), it is expanding its territory nationwide. Since entering the domestic market in 2013, the number of agents secured has reached 400. The virtuous cycle among franchisees, which has been envisioned since its introduction, is also being fully realized.
◇Prerequisite for large-scale brokerage firms and systematic management system
 Mr. Shin is a trader who graduated from the Department of Economics at Korea University and started his career at Ssangbangwool Corporation in 1988. He then joined ERA Korea and entered the real estate brokerage market in earnest. At that time, companies were selling off their real estate holdings in large quantities due to liquidity pressure caused by the foreign exchange crisis. Mr. Shin also adapted steadily as the market grew.
However, apart from the growth of the market, the environment was not easy. Because the brokerage market was closed, there was considerable prejudice against the participants. Due to prejudice, their expertise was not highly evaluated. This was the opportunity for CEO Shin to think about the need for a better working environment and an environment where brokerage market participants could be respected.
CEO Shin established the local brand Wide Partners in 2009 with the intention of not ending it with mere concerns. He attempted to expand the company by increasing the number of directly managed stores of Wide Partners. He foresaw that the expansion of the corporation was essential in order to establish a continuous management and systematic education system for participants in the brokerage market.
Contrary to his intentions, not all the processes were smooth. He said, "We encountered limitations as a local brand from the third year of establishment," and "We had difficulties in management as the number of people increased." He added, "Internally, we also felt the need to find a breakthrough as a global brand with a sound corporate culture and advanced systems, just like our founding motive."
At this time, CEO Shin caught Remax's eye. Remax is a global brand that has grown through franchise contracts since its establishment by Dave Liniger in 1973. Thanks to the founding principle of sharing the profits of franchisees, there are currently 144,000 real estate experts called agents active in over 110 countries.
CEO Shin said, "It was a challenge to introduce a global brand in the form of a franchise that shares profits and know-how in the closed domestic brokerage market," but added, "I was confident that if I brought in the network and systematic system that Remax has, my juniors would be treated better and an environment where they could work more comfortably was created, so I took on the role of master franchise."
◇Virtuosic cycle led by the Remax brand, expanding through market purification
It has been over 10 years since the introduction of the global brand under the name of Remax Korea. During that time, CEO Shin has been working hard to promote the advantages of Remax’s franchise. He has held regular briefing sessions for local brokerage firms, commonly known as “first-floor real estate.” In particular, he has consistently emphasized the advanced management systems that will be available upon joining.
The education program is the area that CEO Shin is putting the most effort into. It aims to break away from the apprenticeship system where know-how is passed down between individual business owners and aims for a professional education program. It differentiates itself by operating and separating education for franchise representatives and agents. In proportion to the accumulated experience, the education materials have also been steadily improved and strengthened.
CEO Shin explained, "The biggest advantage of a franchise is that all franchisees can use the system of a large company," and "As real estate sales have emerged as a knowledge industry, there is a consensus that we need to provide an education program that is suitable for a global brand." He added, "The goal is an education program that mixes theory and experience, rather than simply imparting experience."
Collaboration between franchisees is also in full swing. There are increasing cases where franchisees jointly perform exclusive management. Sometimes, individual franchisees participate as the management for the buyer and seller sides. In addition to the annual 'AND (Agent Networking Day)' event, affiliated agents form small groups and hold regular meetings, which is creating a virtuous cycle.
CEO Shin’s next goal is to expand the virtuous cycle. If he established a local brand to improve the treatment of brokerage market workers in the past, he is now focusing on eliminating the opacity of the brokerage market itself. He decided that there is still room for expansion by utilizing the network built by Remax Korea and its affiliated franchisees.
He said, "The information imbalance in the brokerage market has been largely resolved, but there is still room for improvement," and "A typical example is the commercial property acquisition transaction, where we had to shoulder risks every time due to opaque key money." He added, "I expect that by utilizing the network we have accumulated so far, we will be able to play a role in purifying the market."
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