Real estate information has long been the exclusive domain of a select few. Commercial real estate transactions have been subject to severe information asymmetry and have been difficult for the general public to access.
In this complicated but monotonous market, 'Disco' has emerged with a variation. Disco, which started as a service that checks the actual transaction price of real estate nationwide on a map, has evolved into a platform where various information such as land and building information, auctions, and properties for sale are harmoniously combined. And services such as registration inspection and AI automatic design are being added to increase the tempo.
A total of 4 million people have used it, and 500,000 people check real estate information to the rhythm of disco every month. How did this platform, which has 20,000 real estate agents, lead a new tempo in the real estate market?
CEO Bae-soon Bae cited the nationwide network of certified real estate agents as a key factor in Disco’s success in the commercial real estate transaction market. Based on this network, the company is creating harmony by collaborating with various companies such as Nonghyup Bank, NH Investment & Securities, Hanssem, S1, and Hyundai Engineering.
He confidently explained his strategy of “solving the needs of companies that have difficulty accessing local real estate markets by connecting them with local real estate agents.”
BEP Achievement Strategy that Dances to the Tune of Sales
Disco broke even in January 2024 and achieved BEP in the first quarter of this year. Now, the goal is to achieve BEP annually. “The current market makes it difficult to grow a company through investment, so we are trying various moves to increase sales.”
CEO Bae Woo-soon explained while pointing to the sales graph displayed on the screen. The 'Disco AD' service, which was launched to diversify revenue, tested which services are effective as advertisements and which methods of advertisement exposure are effective.
Connecting advertisers and consumers through certified real estate agents has not yet achieved significant results, but it has helped discover new steps to connect offline and online.
The secret to disco's success lies in its differentiated strategy, like choreography that simultaneously meets the needs of two groups.
CEO Bae Woo-soon leaned forward in his seat and emphasized, “We are keeping our promise to licensed real estate agents that we will not introduce services that harm the interests of licensed real estate agents.” We do not attempt to do direct brokerage, share licensed real estate agent commissions, or allow building owners to directly promote their properties. We have made it possible for general users to view all basic information without having to sign up.
After a moment of thought, he added, “The direction we are currently working on is to improve the service so that customers who have not yet signed up will want to sign up as if they were dancing to the rhythm of a disco.”
Expanding the floor with two axes: franchise and AI
Launched in the second half of 2023, 'Disco Cha' connects franchises and commercial real estate on a single stage.
“Based on the Gangnam commercial district, about 30% and in new cities, about 50% are filled with franchise commercial facilities.”
Based on these figures, CEO Baewoo Soon emphasized the importance of connecting franchises and certified brokers. Currently, they are collaborating with about 30 brands, and in the future, they plan to expand the melody to provide franchise brand and store information, start-up costs and sales estimates, and services that connect franchises, store owners, and certified brokers.
AI technology is also actively utilized to create new beats. CEO Bae-soon explained, “Average of 150 people use it monthly, and over 2,000 customers have used it in total.” Disco, which has about 30 million real estate transaction information and 40 million pieces of land and building information, is in the process of learning property information through the LLM model.
“Because listing information is an important asset for real estate agents, we are trying to create a service that protects listing information while also delivering it to consumers, so that real estate agents and consumers can meet on the same stage.” His voice was filled with caution.
Future investment toward a new rhythm of the market
Regarding the real estate market outlook, CEO Bae Soo-soon expressed cautious optimism. “I think the real estate market has reached its lowest point. However, recovery will take time.”
After taking a moment to collect his thoughts and catch his breath, he predicted that the second half of this year and the first half of next year would be a good time for investors who own assets. However, he advised that the second half of next year or later would be more suitable for general investors because of the high risk.
Disico, which expects the commercial real estate brokerage market to gradually revive and start a new dance from the second half of the year, is also preparing to revamp its services to strengthen exposure of properties in line with this trend.
Disco also does not miss the melody of social responsibility. CEO Bae-soon Bae mentioned the case of participating as a management agency in the Ministry of Agriculture, Food and Rural Affairs’ Empty House Bank project and said, “We plan to focus on improving the process of improving markets with asymmetric information, such as empty houses in rural areas, through online channels.”
As a tech startup CEO, the insight that CEO Bae-soon Bae gained during his eight-year journey was clear as a beat. He lightly tapped his hand on the desk and emphasized, “We need to focus on developing means to solve market problems and services for customers. Various services come out and disappear based on the judgment of the market, but I think we can get closer to the answer when we understand customers and create services in the process.”
“Disco is not a company that does anything special.” This is the humble statement of CEO Bae-soon, but his eyes sparkled like a disco ball from the 70s as he tried to resolve the information asymmetry in the real estate market. Ten years later, Disco continues its journey by breaking down the information barrier in the real estate market, creating a new rhythm, and becoming a platform where everyone can dance together.
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