South Korea will ease REIT regulations to help normalize the PF market

SEOUL, June 17 (Yonhap) — The Ministry of Finance said Monday it will ease regulations on real estate investment trusts (REITs) as part of efforts to normalize the real estate project financing sector.

According to the Ministry of Economy and Development, the Government will create “project REITs” after a drastic abolition of regulations to allow more small investors to join projects, and will expand REIT investment goals to include healthcare, data centers and other promising areas of Finance.

A REIT is a type of securities that invests in real estate that is traded on major stock exchanges and provides investors with shares in properties such as office buildings, apartments and hotels.

The measure comes as South Korea faces risks from rising real estate PF arrears amid a property market collapse and high interest rates, with the government seeking to support an “orderly soft landing” of debt to minimize its potential impact on economics.

“The government will help more people benefit from real estate investment,” Finance Minister Choi Sang-mok said at a meeting of economic ministers. “We will continue our efforts to normalize the PF market.”