From a Community Space Sharing Blessings and Virtues to Experts in Law and Systems: A Century of Change.
- The original spirit and philosophy behind the name ‘Bokdeokbang’
- Legal and social changes experienced by the real estate brokerage industry over time
- How our perspective on homes has changed, and what we have gained and lost in the process
Today, when we look for a home, we seek out the ‘real estate brokerage office’ with a green sign. It is a common sight to see professionals with legal knowledge analyzing market prices and information on computers. However, just a generation ago, that place was known as Bokdeokbang. I still casually refer to brokerage fees as ‘Bokbi’, a term that contains a completely different world we have forgotten.
Beyond a simple name change, we will follow the journey of how Korean society’s view of homes and community has dramatically transformed.
The Spirit of Bokdeokbang: Sharing Blessings (福) and Virtues (德)
The essence of Bokdeokbang lies in the spiritual world encapsulated in its name. It was not just a business name but a declaration of the values and mission that space should pursue.
Philosophy Encapsulated in the Name: Heavenly Blessings, Earthly Blessings, and Human Virtue
- Blessings (福): It was not merely luck. It encompassed a deep concept of the earth’s energy (地福) and the blessings of heaven (天福). A good home meant a space that attracted such blessings, naturally connecting to the concept of Feng Shui (風水).
- Virtue (德): It referred to ‘virtue among neighbors’ (人德). As the old saying goes, “Buy a house for eight hundred gold, and buy a neighbor for a thousand gold,” our ancestors valued the community over the physical house.
Ultimately, Bokdeokbang was a place that helped families find a home encompassing the blessings of heaven, earth, and people.
‘Saenggibokdeok’ and the Center of Community
The roots of ‘Bokdeokbang’ can be found in the folk belief of ‘Saenggibokdeok (生氣福德)’. It was a custom to choose important days like moving or weddings to avoid misfortune and invite blessings. Interestingly, the place where community rituals were held and food was shared to ensure the well-being of the community was also called ‘Bokdeokbang’. From the beginning, it was not a commercial space but had the character of being the center of the village community.
The Role of the Village Elder, ‘Jipjureum’
Before the official Bokdeokbang, there were individuals known as ‘Jipjureum’ or ‘Gagwae (家儈)’ who played that role. They were respected wise elders in the village, acting as more than simple brokers, helping new families integrate well into the community as ‘matchmakers’. Their greatest assets were not certifications but trust and reputation.
The Beginning of Regulation: Bokdeokbang Enters the Framework of Systems
The traditional order based on trust began to be incorporated into the framework of laws and systems with the changing times.
- Korean Empire (1890): The
Guest House Regulationswere enacted, marking the first government intervention in the brokerage industry. It transitioned from a free profession to a licensing system (認可制) requiring government approval. - Japanese Occupation (1922): The
Introduction Business Cancellation Regulationswere announced, introducing a stronger permit system (許可制). This was not merely to establish order but aimed at the colonial government controlling real estate information. - Post-Liberation (1961): The
Introduction Business Actwas enacted, changing the regulations to a significantly relaxed reporting system (申告制). This was a measure to encourage free economic activity but later became the backdrop for a real estate speculation frenzy.
Legal Evolution of the Real Estate Brokerage Industry
| Era | Major Regulations | System Type |
|---|---|---|
| Joseon Dynasty | (None) | Trust-based (Free Profession) |
| Korean Empire | Guest House Regulations (1890) | Licensing System |
| Japanese Occupation | Introduction Business Cancellation Regulations (1922) | Permit System |
| Republic of Korea (1961-1983) | Introduction Business Act (1961) | Reporting System |
The Shadow of Economic Growth: The Speculation Frenzy of the 1970s
In the 1970s, the state-led rapid growth and the development plan for Gangnam completely transformed the nature of Bokdeokbang.
The Gold Rush of Gangnam and the Birth of ‘Bokbuin’
The government-led development of Gangnam opened the ‘El Dorado’ of real estate speculation in South Korea. The myth that “buying land in Gangnam makes you rich” gave rise to the neologism ‘Bokbuin (福夫人)’, referring to upper-class women leading apartment speculation while frequenting Bokdeokbang.
The Corruption of ‘Blessings’ and the Disappearance of ‘Virtues’, and ‘Teotdabang’
- Corruption of ‘Blessings’ (福): The blessing of a stable home degraded into the meaning of ’lottery tickets (福券)’, where one could make a fortune overnight through the resale of apartment rights.
- Disappearance of ‘Virtues’ (德): The values of neighborly virtue and community disappeared. Acts that destroyed the community for monetary gain, such as price collusion and spreading false information, became rampant.
In this chaos, illegal mobile brokerage offices known as ‘Teotdabang’ sprang up like mushrooms, fueling the speculation frenzy and exacerbating market confusion.
The Era of Experts: The Emergence of Certified Brokers
In response to the extreme chaos of the 1970s, the government decided to end the old Bokdeokbang era and open a new era characterized by professionalism and legal responsibility.
In December 1983, a decisive measure, the Real Estate Brokerage Act, was enacted. The core of this law was the introduction of a national qualification system for Certified Brokers (公認仲介士).
- Strict National Examination: The exam, first implemented in 1985, required specialized knowledge in law, tax law, etc., creating a high barrier to entry.
- Strengthening of Professionalism and Responsibility: It imposed strict legal responsibilities, such as the obligation to verify and explain brokerage targets.
- Exit of the Old Era: This effectively expelled non-professional existing Bokdeokbang owners from the market.
Thus, the cultural concept of ‘a room of blessings and virtues’ was completely replaced by the economic concept of ‘real estate (不動産)’ recognized by the state.
Bokdeokbang vs Real Estate Brokerage Office
Comparing the core differences between the two spaces provides a clear view of the changes over time.
| Category | Bokdeokbang (Past) | Real Estate Brokerage Office (Present) |
|---|---|---|
| Core Value | Community (Blessings/Virtues) | Assets (Economic Value) |
| Broker Role | Village Mediator (Jipjureum) | Legal Expert (Certified Broker) |
| Transaction Basis | Trust and Reputation | Legal Responsibility and Contracts |
| Main Purpose | Providing a Home | Asset Growth and Transaction Stability |
Conclusion
The journey from Bokdeokbang to real estate brokerage offices is a microcosm of the rapid growth experienced by Korean society. In this process, what have we gained and lost?
- Loss of Traditional Values: We have lost the affection of Jipjureum, who knew the ins and outs of the neighborhood, and the trust of the community.
- Securing Professionalism and Stability: In exchange, we have gained professionalism and legal stability that protects consumers under strict responsibilities armed with legal knowledge.
- Remaining Traces: However, like the term ‘Bokbi’, the longing for human warmth and community that cannot be filled by efficiency alone still remains with us.
Ultimately, the story of ‘Bokdeokbang’ is not merely a change of signboards but a vivid record of the process by which traditional community society has been restructured into modern capitalist society. What does ‘home’ mean to you today? Is it merely a place to sleep, or is it still a warm nest where blessings and virtues are shared?
References
- [Seoul Story] Bokdeokbang > Archive Korea History Research Association
- [Manpasikjeok] What Crime Did Bokdeokbang Commit? Seoul Economy
- The Origin of Bokdeokbang Brunch
- Bokdeokbang Has Disappeared Our Culture Newspaper
- [Contribution] History of Real Estate Brokerage (4) Onyang Newspaper
- [Urban Exploration] “A Thousand Gold Among Eight Hundred”… Even in the Joseon Dynasty, They Made a Fortune in ‘Real Estate’ News Post
- Bokbuin (福婦人) Encyclopedia of Korean National Culture
- Detailed Information on Real Estate Brokerage System Policy Ministry of Land, Infrastructure and Transport