[Exclusive] Bithumb Seeks Entry Into Real Estate Platform Market, Pursues Partnership With Korea Association of Realtors

Bithumb Seeks to Secure Real Estate Listings, Including Apartments
Offering Investment Opportunities Beyond Cryptocurrency
Brokerage Industry Voices Opposition… “Concerns Over Advertising Costs and Direct Transactions”

Bithumb, a cryptocurrency exchange, is seeking to enter the real estate brokerage platform market. To that end, it plans to partner with the Korea Association of Realtors and secure property listings. The move is seen as an effort to offer its customers investment opportunities in real estate as well as cryptocurrency. Attention is focused on whether it will shake up the real estate platform market, which is effectively divided between Naver and Zigbang. However, opposition within the association to Bithumb’s entry into the brokerage market is growing, and some say it remains to be seen whether the partnership will go ahead.

According to industry sources on October 20, the Korea Association of Realtors and Bithumb are working to sign a partnership agreement to link real estate information and operate related services. Bithumb Real Estate is the party to the agreement. A Bithumb representative said, “It is true that we are pursuing a partnership agreement with the association. The business is still in its early stages, and depending on whether the agreement goes through, we plan to consider options such as establishing Bithumb Real Estate Co., Ltd.”

The partnership would involve the association providing Bithumb with property listings from Hanbang, its real estate transaction information network, in exchange for support for costs such as upgrading the network. According to a draft agreement, the association would link data on its member real estate agents, while Bithumb Real Estate would handle platform development, operation, and maintenance. Hanbang carries listings for apartments, buildings, commercial properties, factories, and land from more than 100,000 licensed real estate agents who are association members and operate nationwide. The total number of listings ranges from 900,000 to 1 million. However, the two sides are currently discussing initially limiting the listings covered by the partnership to apartments.

Bithumb’s move to secure listings appears intended to offer real estate investment opportunities to its customer base of 10 million cumulative subscribers and explore expanding its subscription services. The new platform will carry not only listings secured by real estate agents but also properties submitted directly by sellers. Bithumb is also reportedly seeking to gain early access to property data that could serve as the foundation for a future new business in real-world asset (RWA) tokenization.

The association also expects its members’ listings to gain exposure to Bithumb customers through the partnership, generating promotional benefits without additional advertising costs. Funds secured through the partnership could also be used to upgrade the Hanbang transaction network. An association representative said, “Real estate agents are currently facing an excessively heavy advertising cost burden on Naver and Zigbang. The entry of Bithumb’s platform could lead to lower advertising costs as companies compete with one another.”

Some in the real estate brokerage industry have voiced concerns about Bithumb’s entry into the real estate platform market. With a number of platforms, including Naver and Zigbang, already established in the market, Bithumb’s entry could further increase the advertising cost burden on individual agents down the line. In response to the growing concerns, Bithumb held a meeting at the association and explained that it would keep advertising and listing fees free and would not encroach on real estate agents’ existing scope of work.

An industry source familiar with the matter said, “When a platform operator first enters the market, it may offer free services to real estate agents to secure a large number of listings, but things change as the number of users grows. As with existing platforms, the more dominant a platform becomes, the more dependent agents become on it. Once the three-year contract ends, advertising costs and competitive pressures will ultimately increase.”

There is also significant opposition within the association. The partnership proposal was rejected once at a board meeting in September. The association has put the proposal back on the agenda for the board meeting being held today, but its passage is far from certain. A senior association official said in a phone interview, “Bithumb says it is not entering the brokerage business because it will not draw up real estate transaction contracts itself, but it will connect agents and sellers through its platform. Unlike Naver or Zigbang, it could also create a direct transaction market, which is a cause for concern.”

Ha Jaegap, secretary-general of the Korea Association of Realtors, said in a recent letter to members, “If we do nothing because we are concerned, pressure from existing monopolistic platforms will only intensify. Taking the lead in shaping the market, rather than running away, is the way to protect our livelihoods.”

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