REAL ESTATE INVESTMENT COMPANY ACT

영문법령 불러오는 중…

REAL ESTATE INVESTMENT COMPANY ACT — 법갈피

Article 7(Promoters) #

None of the following persons shall be eligible to become a promoter of a real estate investment trust. In such cases, among the corporations established by a foreigner or pursuant to foreign statutes or regulations, the same shall apply to the corporations falling under the same or similar causes in the following: <Amended on Jun. 22, 2015; Jan. 19, 2016>

1. A minor, a person under adult guardianship, or a person under limited guardianship;

2. A person declared bankrupt and not yet reinstated;

3. A person sentenced to a fine or heavier punishment under this Act, the Licensed Real Estate Agents Act, the Act on Report on Real Estate Transactions, the Act on Appraisal and Certified Appraisers, the Financial Investment Services and Capital Markets Act, Articles 214 through 224,347,347-2,348,348-2,349 through 359 of the Criminal Act and other statutes related to finance (hereafter referred to as "related statutes" in this Article) prescribed by Presidential Decree, in whose case five years have not passed since such punishment was completely executed (including cases where the execution is deemed to have been completed) or exempted;

4. A person who is under the suspension of execution of punishment of imprisonment without labor or greater punishment as sentenced by a court pursuant to this Act or related statutes;

5. A person who was an executive officer or employee of a corporation, of which business permission, authorization, registration, etc. was cancelled in accordance with this Act or related statutes (limited to a person who was directly or correspondingly responsible for the cause of cancellation of such business permission, authorization, registration, etc. and prescribed by Presidential Decree) and in whose cases five years have not yet elapsed from the date of cancellation of business permission, etc., against such corporation;

6. A person in whose cases five years have not elapsed since the date of dismissal or removal from his or her office due to violations of this Act or related statutes.

[This Article Wholly Amended on Apr. 15, 2010]

Article 9(Authorization for Business) #

(1) Where a real estate investment trust intends to conduct the business provided for in the subparagraphs of Article 21(2) with respect to Article 21(1)1 through 5, it shall obtain authorization from the Minister of Land, Infrastructure and Transport by type of real estate investment trust under subparagraph 1 of Article 2, as prescribed by Presidential Decree; provided, the foregoing shall not apply to the business prescribed by Presidential Decree, such as investigations for acquiring real estate. <Amended on Dec. 18, 2012; Mar. 23, 2013; Jun. 22, 2015; Aug. 20, 2019>

(2) The Minister of Land, Infrastructure and Transport shall ascertain matters referred to in the following subparagraphs in deciding whether to grant authorization for business under paragraph (1) (hereinafter referred to as "authorization for business"): <Amended on Dec. 18, 2012; Mar. 23, 2013; Jun. 22, 2015; Aug. 16, 2023; May 27, 2025>

1. Whether a real estate investment trust has been incorporated pursuant to Articles 3 through 8,11-2, and 45;

2. Validity and adequacy of a business plan;

2-2. Whether a corporate restructuring real estate investment trust has an asset portfolio in compliance with the requirements provided for in Article 49-2(1);

3. Adequacy of a plan to issue new stocks; provided, it shall be limited to new stocks which are issued within 3 years (5 years in the case of project real estate investment companies under Article 26-4) from the date of authorization for business;

4. Other matters prescribed by Presidential Decree.

(3) Where the Minister of Land, Infrastructure and Transport grants authorization for business, he or she may attach conditions necessary to ensure integrity of management and protect investors. <Amended on Mar. 23, 2013>

(4) No real estate investment trusts shall issue any new stocks by allotment to persons other than shareholders before authorization for business is granted.

(5) Where the Minister of Land, Infrastructure and Transport has granted authorization for business, he or she shall publish the details thereof in the Official Gazette and on its website, etc. <Amended on Mar. 23, 2013>

(6) Where a real estate investment trust intends to obtain authorization for business pursuant to paragraph (1), it shall submit the results of appraisal conducted by an appraiser corporation, etc. (referring to an appraiser or appraisal corporation prescribed by the Act on Appraisal and Certified Appraisers; hereinafter referred to as "appraisal corporation, etc.") on real estate intended for its business to the Minister of Land, Infrastructure and Transport; provided, where it purchases real estate intended for its business from the State, a local government, or institution prescribed by Presidential Decree by means of bidding, auction, or other means prescribed by Presidential Decree, it may choose not to conduct appraisal. <Added on Jul. 16, 2013; Jun. 22, 2015; Jan. 19, 2016; Apr. 7, 2020>

(7) Necessary matters concerning appraisal methods, procedures, etc. for the purposes of paragraph (6) shall be prescribed by Presidential Decree. <Added on Jul. 16, 2013>

(8) Where necessary to confirm matters under paragraph (2)2, the Minister of Land, Infrastructure and Transport may entrust reviews to an institution prescribed by Presidential Decree. <Added on Jul. 16, 2013>

[This Article Wholly Amended on Apr. 15, 2010]

Article 9-2(Registration) #

(1) Notwithstanding Article 9, where an entrusted management real estate investment trust and/or a corporate restructuring real estate investment trust satisfying the following requirements intends to conduct the business under the subparagraphs of Article 21(2) with respect to Article 21(1)1 through 5, it shall be registered with the Minister of Land, Infrastructure and Transport, as prescribed by Presidential Decree; provided, the foregoing shall not apply to the business prescribed by Presidential Decree, such as investigations for acquiring real estate. <Amended on Aug. 20, 2019>

1. The concerned real estate investment trust should be legitimately established pursuant to this Act;

2. In cases of an entrusted management real estate investment trust, at least 30/100 of issued stocks should be acquired, exclusively or jointly, by the National Pension Service established under Article 24 of the National Pension Act (hereinafter referred to as the "National Pension Service") or by a shareholder under Article 14- 8(3)1;

3. In cases of a corporate restructuring real estate investment trust, the assets of the trust shall be organized satisfying the standards under Article 49-2(1);

4. The ratio of investment in real estate development business should not exceed 30/100 of the total assets;

5. Other requirements prescribed by Presidential Decree shall be satisfied.

(2) A person intending to make registration pursuant to paragraph (1) shall submit a written application for registration to the Minister of Land, Infrastructure and Transport.

(3) In receipt of the written application for registration under paragraph (2), the Minister of Land, Infrastructure and Transport shall review the application, determine within 20 days on the application for registration, and without delay inform the applicant of the result and ground for such determination. In such cases, the period of time for the aforementioned review shall not include any time spent for taking the complementary measures under paragraph (4) to cure any deficiency of the application for registration and other period of time prescribed by Presidential Decree. <Amended on Jun. 9, 2020>

(4) Where the Minister of Land, Infrastructure and Transport has found any deficiency in the written application for registration under paragraph (2), he or she may request the applicant to cure such deficiency.

(5) Where the Minister of Land, Infrastructure and Transport determines on the application for registration pursuant to paragraph (3), he or she may not reject the application unless he or she finds any of the following reasons:

1. Where the applicant fails to meet the requirements for registration under paragraph (1);

2. Where the applicant has fraudulently prepared the written application for registration under paragraph (2);

3. Where the applicant fails to perform the request to cure deficiency under paragraph (4).

(6) Article 9(3) through (6) shall apply mutatis mutandis to the registration under paragraph (1). In such cases, "authorization for business" shall be deemed "registration". <Amended on Aug. 16, 2023>

[This Article Added on Jan. 19, 2016]

Article 11(Examination for Eligibility as Major Investors of Self-Managed Real Estate Investment Trusts) #

(1) The Minister of Land, Infrastructure and Transport verifies shall, without delay, examine eligibility as major investors (referring to those who hold shares in excess of 5/100 of the total number of issued shares; hereinafter the same shall apply) in any of the following cases: <Amended on Aug. 16, 2023>

1. Where it is verified that a self-managed real estate investment trust prepared the minimum capital under Article 10;

2. Where a major investor is changed after eligibility as a major investor is examined because he or she falls under subparagraph 1.

(2) Where the Minister of Land, Infrastructure and Transport examines eligibility as a major shareholder pursuant to paragraph (1), he or she shall confirm whether a relevant person meets the following requirements:

1. The person shall not fall under any of subparagraphs 2 through 6 of Article 7;

2. Five years shall have passed after the person was sentenced to a fine or heavier punishment, in violation of the Monopoly Regulation and Fair Trade Act or the Punishment of Tax Offenses Act, and the execution thereof was completed, or he or she was ruled exempt from execution thereof;

3. The person shall meet other requirements prescribed by Presidential Decree in relation to the source of funds, financial standing, etc.

(3) Where a major investor fails to meet requirements under paragraph (2), the Minister of Land, Infrastructure and Transport may order the relevant major investor to dispose of shares he or she holds in excess of 5/100 of the total number of issued shares within a fixed period not exceeding six months.

(4) Any person ordered to dispose of shares pursuant to paragraph (3) shall not exercise voting rights on shares he or she holds in excess of 5/100 of the total number of issued shares.

(5) In order to examine eligibility pursuant to paragraph (1), the Minister of Land, Infrastructure and Transport may request major investors to submit related materials within a fixed period not exceeding 30 days. In such cases, the major investors requested to submit materials shall comply with such request unless extenuating circumstances exist.

(6) Detailed matters concerning procedures for and methods of examining eligibility under paragraph (1) shall be prescribed by Presidential Decree.

[This Article Added on Jul. 16, 2013]

Article 12(Matters Subject to Resolution by General Meetings of Shareholders) #

(1) The following matters shall undergo resolution by a general meeting of shareholders; provided, Article 434 of the Commercial Act shall apply mutatis mutandis to the resolution on matters referred to in subparagraphs 4,4-2, and 5: <Amended on Dec. 18, 2012; Jun. 22, 2015; Aug. 20, 2019>

1. Final decision on the business plan of the relevant year;

2. Plans for borrowing funds and issuing bonds for the relevant year;

3. Matters relating to the conclusion of important contracts prescribed by Presidential Decree, such as the acquisition and disposal of assets in excess of 30/100 of the total assets in connection with the investment and management of assets, or conclusion of amended contracts;

4. Determination of a real estate development project, or matters concerning the change of any important parts prescribed by Presidential Decree, such as the objectives, objects, and scope of the determined real estate development project;

4-2. Percentage of investment in real estate development projects out of the total assets;

5. Matters concerning in-kind contributions in real estate under Article 19;

6. Matters relating to the conclusion of an asset custody contract or amendments thereto with an asset custody organization pursuant to Article 35(1).

(2) A real estate investment trust may postpone a general meeting of shareholders if the total number of stocks owned by those who attend the meeting until one hour after the scheduled time of the meeting are below the majority of the total stocks issue. In such cases, a real estate investment trust shall convene the general meeting of shareholders postponed (hereafter referred to as "postponed general meeting of shareholders" in this Article) within two weeks from the date. <Amended on Jun. 9, 2020>

(3) If the total number of stocks owned by those who attend the meeting until one hour after the scheduled opening time of the postponed general meeting of shareholders is below the majority of the total stocks issued, the general meeting of shareholders shall be deemed effective by the total number of stocks held by those present. In such cases, the resolution at the postponed general meeting of shareholders shall be passed by the majority of the voting rights of those present; provided, the special resolution on matters referred to in paragraph (1)4,4-2, and 5 at the postponed general meeting of shareholders shall be passed by not less than two thirds of the voting rights of those present. <Amended on Jun. 22, 2015; Jun. 9, 2020>

[This Article Wholly Amended on Apr. 15, 2010]

Article 14-8(Public offering of shares) #

(1) No real estate investment trust shall make a public offering of shares it issues before obtaining authorization for business or registering its business (in the case of a real estate investment trust whose percentage of investment under Article 12(1)4-2 exceeds 30/100, before obtaining authorization, permission, etc. under related statutes or regulations for the implementation of a real estate development project in which it invests). <Amended on Jun. 22, 2015; Jan. 19, 2016>

(2) A real estate investment company shall make a public offering of at least 30/100 of the total number of shares issued within 3 years (5 years in the case of a project real estate investment company under Article 26-4) from the date it obtains authorization for business or registers its business (in the case of a real estate investment company whose percentage of investment under Article 12(1)4-2 exceeds 30/100, referring to the date on which approval for use, completion inspection, etc. are granted or conducted under relevant statutes or regulations for the implementation of a real estate development project in which it has invested; hereafter in this Article the same shall apply). <Amended on Jun. 22, 2015; Jan. 19, 2016; Aug. 16, 2023; May 27, 2025>

(3) Where a real estate investment company falls under any of the following, notwithstanding paragraph (2), it may not make a public offering of stocks: <Amended on Jun. 4, 2013; Jun. 22, 2015; Aug. 28, 2015; Jan. 19, 2016; Aug. 14, 2018; Aug. 20, 2019; Aug. 16, 2023; May 27, 2025>

1. Where the total stocks the National Pension Service or other shareholders prescribed by Presidential Decree has acquired or bought, solely or jointly, within 3 years (5 years in the case of a project real estate investment company under Article 26-4) from the date the real estate investment company obtains authorization for business or registered its business is at least 50/100 of the total stocks issued by the real estate investment company;

2. Where at least 70/100 of the total assets of the real estate investment trust consists of rental housing (referring to the private rental housing under the Special Act on Private Rental Housing and the public rental housing under the Special Act on Public Housing).

(4) Notwithstanding paragraph (2), where the Minister of Land, Infrastructure and Transport recognizes that it is necessary for public interest, such as regional development, to provide opportunities for the public offering to residents of a specific region, a real estate investment company may separately determine the eligibility for the public offering. <Added on May 27, 2025>

(5) Where a real estate investment company makes a public offering of stocks in accordance with paragraph (2), it shall disclose the information on the public offering to the information system on real estate investment companies under Article 49-6. <Added on Jan. 19, 2016; May 27, 2025>

(6) Except as provided in paragraphs (2) and (5), detailed matters necessary to make a public offering of stocks, such as the period and methods for disclosing information on the public offering, shall be prescribed by Decree of the Ministry of Land, Infrastructure and Transport. <Added on Aug. 16, 2023; May 27, 2025>

[This Article Wholly Amended on Dec. 18, 2012]

[Moved from Article 14-3 <Dec. 18, 2012>]

Article 22-3(Authorization for Asset Management Companies) #

(1) Any person who intends to incorporate an asset management company shall obtain authorization therefor from the Minister of Land, Infrastructure and Transport after meeting each of the following requirements: <Amended on Dec. 18, 2012; Mar. 23, 2013; Dec. 22, 2020>

1. The capital (referring to the amount calculated by subtracting the sum of liabilities from the sum of total assets; hereinafter the same shall apply) shall be at least seven billion won;

2. He or she shall employ full-time asset management specialists under Article 22 not less than the number prescribed by Presidential Decree.

3. It shall have a system for preventing conflicts of interest between an asset management company and investors, and between a specific investor and other investors, the computerized system prescribed by Presidential Decree, and other physical facilities.

(2) The Minister of Land, Infrastructure and Transport shall verify each of the following matters, as prescribed by Presidential Decree, when he or she determines whether to grant authorization pursuant to paragraph (1): <Amended on Mar. 23, 2013; Dec. 22, 2020>

1. Feasibility of a business plan;

2. Composition of shareholders and the appropriateness of funds used to acquire stocks;

3. Appropriateness of a management plan separating the intrinsic assets of the relevant asset management company and the entrusted assets;

4. The management’s expertise and management ability.

(3) An asset management company is prohibited from concurrently running business, other than the business commissioned by any entrusted management real estate investment trust and any corporate restructuring real estate investment trust; provided, the same shall not apply to any of the following cases: <Amended on Aug. 20, 2019>

1. Where concurrent business is permitted under this Act and other statutes;

2. Where anyone eligible to be commissioned to run business provided for in any of the subparagraphs of Article 21(2) with regard to the subparagraphs of Article 21(1) in accordance with other statutes obtains authorization pursuant to paragraph (1) after being recognized to be fully able to protect investors;

3. Where concurrent business is prescribed by Presidential Decree as being not to impede the investment and operation of entrusted assets and the protection of investors.

(4) Any person who intends to obtain authorization for incorporation pursuant to paragraph (1) shall obtain confirmation from the Minister of Land, Infrastructure and Transport in advance regarding paragraph (2)2 and 3 before acquiring stocks. <Amended on Mar. 23, 2013; Feb. 20, 2024>

(5) Deleted. <Feb. 20, 2024>

(6) The Minister of Land, Infrastructure and Transport may attach conditions to secure integrity in management and to protect investors when deciding on whether to grant authorization for incorporation under paragraph (1). <Amended on Feb. 20, 2024>

(7) Where the Minister of Land, Infrastructure and Transport has granted authorization for incorporation pursuant to paragraph (1), he or she shall publicly announce the details thereof on the Official Gazette, the website, etc. of the Ministry. <Amended on Mar. 23, 2013; Dec. 22, 2020; Feb. 20, 2024>

(8) Matters necessary for procedures, etc. for authorization for incorporation shall be prescribed by Presidential Decree. <Amended on Feb. 20, 2024>

(9) Any asset management company that obtains authorization for incorporation in accordance with paragraph (1) shall meet the requirements provided for in the subparagraphs of paragraph (1) when conducting its business and shall comply with the matters prescribed by Presidential Decree in order to maintain integrity in its management. <Added on Dec. 22, 2020>

(10) The Minister of Land, Infrastructure and Transport may evaluate the current status of business management and risks to ensure integrity in management of asset management companies, as prescribed by Presidential Decree, and may order such companies to take measures necessary for ensuring integrity in management, such as increases in their capital. <Added on Dec. 22, 2020>

(11) Articles 7,31(2), and 33 shall apply mutatis mutandis to the executive officers of an asset management company. In such cases, "real estate investment trust" in Articles 7 and 31(2) and Article 33 with the exception of the subparagraphs shall be construed as "asset management company." <Amended on Dec. 22, 2020>

[This Article Wholly Amended on Apr. 15, 2010]

Article 23(Registration of Real Estate Investment Advisory Companies) #

(1) A person who intends to conduct business of advising, appraising, etc. with regard to the investment and management of assets on the entrustment of a real estate investment trust, shall file for registration with the Minister of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>

(2) A person who intends to register pursuant to paragraph (1) shall have the following qualifications: <Amended on Dec. 18, 2012>

1. Capital shall be more than the amount prescribed by Presidential Decree, which is at least 500 million won;

2. He or she shall employ full-time asset management specialists under Article 22 not less than the number prescribed by Presidential Decree.

(3) Where the Minister of Land, Infrastructure and Transport finds that a person who has registered pursuant to paragraph (1) (hereinafter referred to as "real estate investment advisory company") falls under any of the following, he or she may revoke registration thereof; provided, where a real estate investment advisory company falls under subparagraph 1 or 2, registration thereof shall be revoked: <Amended on Mar. 23, 2013; Aug. 16, 2023>

1. If it has been registered by fraud or other improper means;

2. If it ceases to meet the qualifications referred to in paragraph (2); provided, the same shall not apply to cases prescribed by Presidential Decree, such as temporary incompatibility with the requirements for registration;

3. If it fails to take any measures pursuant to Article 39(2) without justifiable grounds;

4. If it is acknowledged unsuitable to conduct business due to violation of this Act, or orders or dispositions under this Act;

5. If it has not been entrusted with business, such as advising on or appraising the investment and management of its assets, by a real estate investment trust for the recent two years.

(4) No person who has not filed for registration pursuant to paragraph (1) shall use the name "real estate investment advisory" or any similar name (including characters in a foreign language prescribed by Presidential Decree) for its trade name. <Amended on Aug. 16, 2023>

(5) Necessary matters concerning registration procedures, documents to submit, scope of business entrustment, etc. of a real estate investment advisory company shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Apr. 15, 2010]

Article 26-3(Special Cases concerning Investment in Development Projects of Land Provided for Compensation) #

(1) Notwithstanding Article 9-2(1), a real estate investment trust that meets all of the following requirements may file for registration of special cases with the Minister of Land, Infrastructure and Transport before obtaining authorization for business under Article 9 to make in-kind contributions in the right to compensation in land and to conduct business related thereto:

1. It shall be established pursuant to Articles 3 through 8,11-2, and 45;

2. It shall be established for the purpose of developing land provided for compensation by the right to compensation in land;

3. It shall prepare a business plan comprised of the right to compensation in land in which at least 80/100 of the minimum capital prescribed in Article 10 is contributed in kind;

4. It shall obtain the right to be supplied with land that can be used for development projects from a project operator defined in subparagraph 3 of Article 2 of the Act on Acquisition of and Compensation for Land for Public Works Projects (hereinafter referred to as "land supply project operator").

(2) Articles 14-8,15, and 20 of this Act, Article 422 of the Commercial Act, and Article 2 of the Act on Special Measures for the Registration of Real Estate shall not apply to a real estate investment trust that files for registration of special cases under paragraph (1).

(3) A real estate investment trust that files for registration of special cases pursuant to paragraph (1) shall be prohibited from investing and managing its assets under Article 21 and borrowing funds and issuing bonds under Article 29; provided, where such real estate investment trust concludes a contract for supply of land provided for compensation with a land supply project operator and obtains authorization for business under Article 9, it may invest and manage its assets under Article 21 and may borrow funds and issue bonds under Article 29.

(4) A shareholder of a real estate investment trust that files for registration of special cases pursuant to paragraph (1) may dispose of the stocks of the relevant real estate investment trust (including trading, donation, establishment of security, capital reduction with consideration, trust, and all other acts that cause a change in rights but excluding inheritance; hereafter in this Article, the same shall apply), only where any of the following requirements is met: <Amended on Feb. 20, 2024>

1. Three years have passed since a contract for compensation for land with a land supply project operator;

2. The real estate investment trust shall obtain authorization for business pursuant to paragraph (3) of the Act;

3. One year shall have passed since the date the shareholder made in-kind contributions to the real estate investment trust.

(5) Notwithstanding paragraph (4), a shareholder of a real estate investment that files for registration of special cases under paragraph (1) may dispose of its stocks in any of the following cases:

1. Where the shareholder is subject to a disposition on delinquent national or local taxes or compulsory execution thereof;

2. Where all members of his or her household intend to emigrate overseas or to stay overseas for at least two years.

(6) Notwithstanding paragraph (3), a real estate investment trust that files for registration of special cases pursuant to paragraph (1) may borrow funds or issue bonds within the extent of 30/100 of its equity capital after issuing stocks by means of receiving in-kind contributions, in any of the following cases:

1. Where it acquires stocks disposed of by shareholders under paragraph (5);

2. Where it performs business prescribed by Presidential Decree, such as investigations for acquiring real estate under the proviso of Article 9(1).

(7) No real estate investment trust that files for registration of special cases pursuant to paragraph (1) shall issue new stocks by allotment to persons other than shareholders before obtaining authorization for business under Article 9 pursuant to paragraph (3).

(8) Articles 9(3),(5), and (8) and 9-2(2) through (5) shall apply mutatis mutandis to the registration of special cases under paragraph (1). In such cases, "authorization for business" in Article 9(3),(5), and (8) shall be construed as "registration of special cases," and "registration" in Article 9-2(2) through (5) as "registration of special cases," respectively.

[This Article Wholly Amended on Apr. 13, 2021]

Article 26-4(Special cases regarding project real estate investment companies) #

(1) Notwithstanding Article 9(1) and Article 9-2(1), where a real estate investment company that meets all of the following requirements (hereinafter referred to as "project real estate investment company") intends to implement a real estate development project and related business, it shall file a registration of incorporation with the Minister of Land, Infrastructure and Transport, as prescribed by Presidential Decree; in such cases, if the Minister of Land, Infrastructure and Transport deems that it cannot meet the following requirements, he or she shall not accept the registration:

1. It shall be established in compliance with Articles 3 through 8, Article 11-2 (limited to cases established as a entrusted management real estate investment company), and Article 45;

2. Its capital shall be at least 5 billion won;

3. It shall conclude contracts for the entrustment of affairs, business affairs, etc. under Article 22-2(1) and Article 35;

4. It shall meet requirements prescribed by Presidential Decree, as matters necessary for smooth implementation of projects.

(2) The report on incorporation under paragraph (1) shall be filed within 6 months from the date of registration of incorporation of the real estate investment company. In such cases, the Minister of Land, Infrastructure and Transport shall notify the reporter of whether to accept the report within 20 days from the date of receipt of the report.

(3) A project real estate investment company that has filed a report on incorporation in accordance with paragraph (1) shall conduct the affairs under Article 21(2) for any of the subparagraphs of Article 21(1); provided, investment in Article 21(1)1 or 3 through 6 shall be limited to the scope necessary for real estate development projects.

(4) A project real estate investment company that has filed a report on incorporation in accordance with paragraph (1) shall obtain authorization for business under Article 9 or registration under Article 9-2 from the date of obtaining approval for use, completion inspection, etc. for the real estate development project to the date prescribed by Presidential Decree. In such cases, Article 8-2(4) shall not apply.

(5) Notwithstanding Article 9(4), a project real estate investment company that has filed a report on incorporation in accordance with paragraph (1) may issue new stocks to persons other than shareholders in the method and scope prescribed by Presidential Decree.

(6) A project real estate investment company that has filed a report on incorporation in accordance with paragraph (1) shall be deemed to have obtained authorization for business under Article 9 or registered its business under Article 9-2, when it engages in in-kind contributions under Article 19, entrustment of business by real estate investment companies under Article 22-2, restrictions on acquisition of stocks by asset management companies under Article 22-4, borrowings and the issuance of bonds under Article 29, or entrustment of asset custody under Article 35.

(7) A project real estate investment company that has filed a report on incorporation in accordance with paragraph (1), or an asset management company that has concluded an entrustment contract for investment and management of assets with such project real estate investment company, shall report a business investment report to the Minister of Land, Infrastructure and Transport, as prescribed by Presidential Decree, and shall publish it without delay in case of occurrence of financial accidents or non-performing assets, or in other cases prescribed by Presidential Decree as necessary for the public interest or investor protection.

(8) Where it is deemed that the matters reported in accordance with paragraph (7) are in violation of the relevant statutes or regulations or infringes upon the rights and interests of the shareholders of a real estate investment company, the Minister of Land, Infrastructure and Transport may order the relevant real estate investment company or asset management company to correct or supplement the reported matters.

[This Article Added on May 27, 2025]

Article 27(Investment in Securities) #

(1) No real estate investment trust shall acquire in excess of 10/100 of the stocks of other company issued with voting right; provided, this shall not apply to any of the following cases: <Amended on Jan. 19, 2016; Aug. 16, 2023>

1. Where it acquires stocks of a company which has been established with a fixed period of existence to develop specific real estate;

2. Where it merges with other company;

3. Where it takes over the whole business of other company;

4. Where it is necessary to achieve the objective in exercising the rights of a real estate investment trust;

4-2. Where it leases the real estate or real estate-related rights (referring to surface rights, easement, registered lease on a deposit basis, loan of use, lease and other rights prescribed by Presidential Decree) owned by a real estate investment trust in order to provide management service for the concerned real estates or facilities, or where it acquires stocks of a company engaging in the tourist accommodation business pursuant to the Tourism Promotion Act or other businesses prescribed by Presidential Decree;

4-3. Where a self-managed real estate investment trust incorporates an asset management company pursuant to Article 22-5 and acquires all of the stocks issued by such asset management company;

5. Where there is no risk of undermining the protection of investors and the stable operation of assets, as prescribed by Presidential Decree.

(2) Where a real estate investment trust acquires in excess of 10/100 of the stocks of other company issued with voting right pursuant to paragraph (1)2 through 4, it shall, within six months from the date it possesses in excess, make itself fit for the investment limit pursuant to paragraph (1).

(3) No real estate investment trust shall acquire securities (excluding government bond, local government bond, and other securities prescribed by Presidential Decree) issued by the same person in excess of 5/100 of its total assets; provided, in cases of the stocks under paragraph (1)4-2 and 4-3, securities shall not be acquired in excess of 25/100 of the total assets of the real estate investment trust. <Amended on Jan. 19, 2016; Aug. 16, 2023>

(4) Where a real estate investment trust holds securities in excess of the investment limit pursuant to paragraph (3), it shall, within six months from the date it possesses in excess, make itself fit for the investment limit pursuant to paragraph (3).

[This Article Wholly Amended on Apr. 15, 2010]

Article 28(Dividends) #

(1) A real estate investment trust shall distribute to its shareholders at least 90/100 of the dividend limit for the relevant year under Article 462(1) of the Commercial Act [not taking into account the appraisal loss of assets (including the appraisal loss accumulated up to the immediately preceding business year) (hereinafter the same shall apply in this Article and Article 52)]. In such cases, the earned surplus reserves pursuant to Article 458 of the Commercial Act shall not be accumulated. <Amended on Feb. 20, 2024>

(2) Notwithstanding paragraph (1), a self-managed real estate investment trust shall distribute at least 50/100 of the dividend limit for the relevant year under Article 462(1) of the Commercial Act to the shareholders, and may accumulate earned surplus reserves under Article 458 of the Commercial Act. In such cases, notwithstanding the proviso of Article 462(2) of the Commercial Act, the self-managed real estate investment trust shall determine the distribution of dividends in the methods pursuant to the following classification: <Amended on Jun. 22, 2015; Mar. 21, 2017; Aug. 20, 2019; Aug. 16, 2023>

1. In cases of determining on distribution of dividend of at least 50/100 and less than 90/100 of the dividend limit for a concerned year pursuant to Article 462(1) of the Commercial Act: Special resolution of a general meeting of stockholders pursuant to Article 434 of Commercial Act;

2. In cases of determining on distribution of dividend of at least 90/100 of the dividend limit for a concerned year pursuant to Article 462(1) of the Commercial Act: Resolution of a general meeting of stockholders pursuant to the main clause of Article 462(2) of the Commercial Act.

(3) When any entrusted management real estate investment trust pays its dividends in accordance with paragraph (1), it may pay such dividends in excess of its profits, notwithstanding Article 462(1) of the Commercial Act. In such cases, the standards for paying dividends in excess of profits shall be formulated by Presidential Decree within the scope of the depreciation cost for the relevant year. <Amended on Jun. 22, 2015>

(4) When a real estate investment trust listed on the stock exchange pursuant to Article 20 intends to distribute its dividends by selling real estate that accounts for not less than the percentage prescribed by Presidential Decree out of its total assets, it shall hold a meeting of the board of directors at least 10 days before the end of the relevant business year to determine whether to distribute the dividends as well as an estimated amount for the distribution by a resolution of the board of directors. <Added on Dec. 18, 2012>

(5) The distribution of dividends determined pursuant to paragraph (4) shall be made following a resolution of a general meeting of stockholders; provided, where it is prescribed by the articles of incorporation that the distribution of dividends may be made by a resolution of the board of directors, the dividends may be distributed by a resolution of the board of directors. <Added on Dec. 18, 2012>

[This Article Wholly Amended on Apr. 15, 2010]

Article 30(Limitations on Transactions) #

(1) No real estate investment trust shall enter into transactions falling under any of the subparagraphs of Article 21(2) with regard to the subparagraphs of Article 21(1) with any of the following persons: <Amended on Jan. 19, 2016; Aug. 20, 2019; Aug. 16, 2023>

1. Executive officers, employees and specially related persons of the relevant real estate investment trust;

2. Holders of at least 10/100 of stocks of the relevant real estate investment trust (hereinafter referred to as "major shareholders") and its specially related persons;

3. Another real estate investment trust which enters into a contract for entrusting the investment and management of assets with the asset management company with which the relevant real estate investment trust has entered into a contract for entrusting the investment and management of assets (hereafter in this paragraph referred to as "relevant asset management company");

4. A person prescribed by Presidential Decree, who is related to the business run concurrently by the relevant asset management company under Article 22-3(3).

(2) Notwithstanding paragraph (1), a real estate investment trust may enter into any of the following transactions with the persons falling under each subparagraph of paragraph (1): <Added on Jan. 19, 2016; Mar. 21, 2017>

1. A transaction in which parties of transaction are selected by means of public sale, competitive bidding, etc.;

2. A real estate sales transaction approved by the concerned board of directors meeting and the general meeting of stockholders (in cases of a real estate investment trust not listed pursuant to Article 20, referring to the approval of a general meeting of stockholders pursuant to the special resolution under Article 434 of the Commercial Act);

3. Other transactions having no risk of undermining shareholders' interest, as prescribed by Presidential Decree.

(3) Where a real estate investment trust listed pursuant to Article 20 enters into a real estate sales transaction falling under paragraph (2) 2, the sales price shall be computed and determined in accordance with the standards of appraisal and assessment amount provided by at least two appraisal corporations, etc. recommended by the institutions or groups as prescribed by Presidential Decree. In such cases, the sales price of a real estate investment trust shall be the higher of the two or more appraisal and assessment prices, and the purchase price thereof shall be the lower of the two or more appraisal and assessment prices. <Added on Mar. 21, 2017; Apr. 7, 2020>

(4) Methods and procedures, etc. of the appraisal and assessment under paragraph (3) shall be prescribed by Presidential Decree. <Added on Mar. 21, 2017>

[This Article Wholly Amended on Apr. 15, 2010]

Article 37(Investment report and disclosure) #

(1) An asset management company for a self-managed real estate investment company which has obtained authorization for business or for an entrusted management real estate investment company and a corporate restructuring real estate investment company which has obtained authorization for business or registered its business shall prepare an investment report on the relevant real estate investment company for every quarter in each business year, as prescribed by Presidential Decree; and shall publish such investment report within the time limit prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Jun. 22, 2015; Jan. 19, 2016; Aug. 14, 2018; May 27, 2025>

(2) An investment report under paragraph (1) shall include financial statements, composition of shareholders, current status of major shareholders, current status of asset composition and changes, and other matters prescribed by Presidential Decree as important matters related to asset management. <Amended on Aug. 14, 2018; Feb. 20, 2024>

(3) An asset management company for a self-managed real estate investment company authorized to do business or for an entrusted management real estate investment company and a corporate restructuring real estate investment company which has obtained authorization for business or registered its business shall publish, as prescribed by Presidential Decree, upon occurrence of any of the following without delay: <Added on Jan. 19, 2016; Aug. 14, 2018; Aug. 16, 2023; May 27, 2025>

1. Where a full-time asset management specialist of a real estate investment trust and/or its asset management company prescribed in Article 22 has been changed, the facts and the experience of the changed asset management specialist;

2. Upon occurrence of such financial accidents or non-performing assets as prescribed by Presidential Decree at the real estate investment trust;

3. Details of resolution by the general meeting of shareholders of the real estate investment trust;

3-2. Where measures prescribed in any subparagraph of Article 39(2) are taken;

3-3. Conclusion of a contract falling under Article 30(2);

4. Other matters necessary for protecting investors, as prescribed by Presidential Decree.

(4) The disclosure under paragraphs (1) and (3) shall be made in the following methods: <Added on Jan. 19, 2016; Aug. 14, 2018>

1. Disclosure on the website of the concerned real estate investment trust (referring to the relevant asset management company in the case of an entrusted management real estate investment trust or corporate restructuring real estate investment trust);

2. Notification by mail or e-mail to an investor who has invested in the concerned real estate investment trust; provided, the foregoing shall not apply to cases prescribed by Presidential Decree where there are occasional changes in shareholders, or where investors’ interest is unlikely to be harmed;

3. Disclosure on the information system on real estate investment trusts stipulated in Article 49-6 (1);

4. Deleted. <Aug. 14, 2018>

[This Article Wholly Amended on Apr. 15, 2010]

[Title Amended on Jan. 19, 2016]

Article 40(Authorization for modifications) #

(1) Where a real estate investment company intends to perform any of the following acts after having obtained authorization for business or registered its business, it shall obtain authorization from the Minister of Land, Infrastructure and Transport or register its business, as prescribed by Presidential Decree: <Amended on Dec. 18, 2012; Mar. 23, 2013; Jun. 22, 2015; Jan. 19, 2016; May 27, 2025>

1. Modification of matters prescribed by Presidential Decree, as necessary for the protection of investors in the articles of incorporation;

2. Deleted; <Dec. 18, 2012>

3. Acquisition by take-over or transfer of all business;

4. Merger of real estate investment trusts;

5. Modifications to matters subject to authorization for business under Article 9(1) or the matters of registration under Article 9-2 (the foregoing shall not apply where modifications to authorized or registered matters take place for reasons prescribed by Presidential Decree, including auction and public auction).

(2) Notwithstanding paragraph (1), where a self-managed real estate investment trust which meets all the following requirements intends to change or add an investment object (excluding a real estate development project), it shall report to the Minister of Land, Infrastructure and Transport, as prescribed by Presidential Decree. In such cases, where the Minister of Land, Infrastructure and Transport deems it necessary for protecting investors, he or she may choose not to accept the report: <Amended on Jun. 22, 2015>

1. The equity capital on the financial statements of the relevant real estate investment trust shall not fall short of the standards prescribed by Presidential Decree for the last two consecutive years;

2. The relevant real estate investment trust shall have executed an additional project by obtaining authorization for modifications at least twice after it obtained authorization for business;

3. No executive officer or employee of the relevant real estate investment trust shall have been subject to punishment under Articles 50 through 52 for the last three years.

(3) The Minister of Land, Infrastructure and Transport shall notify the reporting person of whether the relevant report has been received, within 20 days after the date of receipt of such report under the former part of paragraph (2). <Added on Dec. 22, 2020>

(4) Where an asset management company that has obtained authorization for incorporation under Article 22-3(1) intends to modify authorized matters prescribed by Presidential Decree, such as a plan for facilities and the composition of stockholders, it shall obtain authorization for modifications from the Minister of Land, Infrastructure and Transport, as prescribed by Presidential Decree. <Added on Dec. 22, 2020>

(5) Article 9(5) and (6) shall apply mutatis mutandis to authorization or registration under paragraph (1)3 through 5 and reporting under paragraph (2), while Article 22-3(7) shall apply mutatis mutandis to authorization for modifications under paragraph (4). <Added on Jun. 22, 2015; Jan. 19, 2016; Dec. 22, 2020>

[This Article Wholly Amended on Apr. 15, 2010]

[Title Amended on Jun. 22, 2015]

Article 41(Matters to be reported) #

(1) Where any of the following causes occurs, a self-managed real estate investment company that has obtained authorization for business, or an asset management company of entrusted management real estate investment companies or corporate restructuring real estate investment companies that has obtained authorization for business or registered its business shall report to the Minister of Land, Infrastructure and Transport within 10 days from the date of occurrence of such cause, as prescribed by Presidential Decree: <Added on Dec. 18, 2012; Mar. 23, 2013; Aug. 20, 2019; May 27, 2025>

1. In-kind contributions under Article 19(2);

2. Deleted; <May 27, 2025>

2-2. Amendments to the articles of incorporation;

3. Deleted; <May 27, 2025>

3-2. Dissolution of a real estate investment trust;

4. Other important matters on the management of a real estate investment trust that are prescribed by Presidential Decree.

(2) Where any of the following causes occurs, an asset management company and a real estate investment advisory company shall report to the Minister of Land, Infrastructure and Transport within 10 days from the date of occurrence of such cause: <Added on Dec. 22, 2020; Aug. 16, 2023>

1. Change of the location of the company;

2. Deleted; <May 27, 2025>

3. Change of personnel specializing in asset management;

4. The fact that it has acquired stocks of at least 10/100 of the total number of issued stocks of a real estate investment trust entrusted with asset management;

5. Other matters prescribed by Presidential Decree for protecting investors, maintaining sound transaction order, or ensuring integrity in management of an asset management company and a real estate investment advisory company.

(3) Where it is acknowledged that the matters reported under paragraph (1) or (2) are in violation of the relevant statutes or regulations or detrimental to the shareholders' rights and interests of a real estate investment trust, the Minister of Land, Infrastructure and Transport may order the relevant real estate investment trust, asset management company, or real estate investment advisory company to correct or supplement them. <Amended on Mar. 23, 2013; Dec. 22, 2020; Aug. 16, 2023>

[This Article Wholly Amended on Apr. 15, 2010]

Article 42(Revocation of authorization for business) #

(1) Where a real estate investment company or an asset management company falls under any of the following, the Minister of Land, Infrastructure and Transport may revoke authorization for business under Article 9, registration under Article 9-2, registration of special cases under Article 26-3, report on incorporation under Article 26-4, or authorization for incorporation under Article 22-3; provided, in cases falling under subparagraph 1, he or she shall revoke authorization for business, registration, registration of special cases, report on incorporation, or authorization for incorporation: <Amended on Mar. 23, 2013; Jul. 16, 2013; Jun. 22, 2015; Jan. 19, 2016; Apr. 13, 2021; Aug. 16, 2023; May 27, 2025>

1. Where it obtains authorization for business under Article 9, authorization for incorporation under Article 22-3, registration under Article 9-2, registration of special cases under Article 26-3, or report on incorporation under Article 26-4 by fraud or other improper means;

2. Where it falls short of the minimum capital, in violation of Article 10;

2-2. Where the asset management company has not been entrusted with the investment and management of assets pursuant to Article 22-2(1) for the last three years;

3. Where it does not comply with the relevant asset ratio, in violation of Article 25;

4. Where it is found to be incompliant with the requirements for authorization for business, registration, registration of special cases, report on incorporation, or authorization for incorporation, or violates the terms of authorization for business, registration, registration of special cases, report on incorporation, or authorization for incorporation; provided, the same shall not apply to cases prescribed by Presidential Decree, such as temporary incompliance with the requirements for authorization for business, registration, registration of special cases, report on incorporation, or authorization for incorporation;

5. Where it fails to take a measure under Article 39(2) without good cause;

6. Where its equity capital has been entirely depleted;

7. Where its working capital prescribed by Presidential Decree, such as cash and bank deposits, does not exceed 50 million won for at least two consecutive months after it has prepared the minimum capital;

8. Where it has pretended to make payment or in-kind contributions under Article 628 of the Commercial Act;

9. Where a real estate investment trust under Article 26-3(1) violates Article 26-3(3).

(2) Article 9(5) shall apply mutatis mutandis to the revocation of authorization for business, registration, registration of special cases, report on incorporation, or authorization for incorporation under paragraph (1). <Amended on Jan. 19, 2016; May 27, 2025>

[This Article Wholly Amended on Apr. 15, 2010]

Article 49(Relationship to Other Statutes) #

(1) Articles 415-2, and 542-8 through 542-12 of the Commercial Act shall not apply to real estate investment trusts. <Amended on Dec. 18, 2012>

(2) Articles 418 through 420, and 420-2 through 420-4 of the Commercial Act shall not apply to a real estate investment trust, of which the preparation period for the minimum capital has not elapsed.

(3) Notwithstanding Article 290 of the Commercial Act, an agreement pursuant to subparagraph 3 of the same Article shall have no effects on real estate investment trusts.

(4) Where an entrusted management real estate investment trust employs a corporate director and supervisory director, Article 393 of the Commercial Act shall not apply to the entrusted management real estate investment trust. <Added on Dec. 18, 2012>

(5) Provisions regarding holding companies under the Monopoly Regulation and Fair Trade Act (hereinafter referred to as "holding company") shall not apply where a real estate investment trust (limited to an entrusted management real estate investment trust or a corporate restructuring real estate investment trust; hereafter in this paragraph the same shall apply) meets the following requirements: <Added on Aug. 16, 2023>

1. It shall be a real estate investment trust which lists its stocks on the securities market under Article 20;

2. It shall constitute a holding company as it acquires the stocks of another real estate investment trust (limited to a real estate investment trust that does not own stocks of other companies) for investment in and management of real estate, etc. within the scope of business specified in Article 4;

3. It shall not be a member company of a business group subject to disclosure designated under the former part of Article 31(1) of the Monopoly Regulation and Fair Trade Act;

4. It shall not own stocks of other companies, other than those of a real estate investment trust acquired under subparagraph 2.

(6) Where a real estate investment trust falls under paragraph (5), an asset management company entrusted with the investment and management of assets by such real estate investment trust shall report such fact to the Minister of Land, Infrastructure and Transport in accordance with the methods prescribed by Presidential Decree within two weeks from the date it satisfies such requirements, and the Minister shall notify the Fair Trade Commission of such fact. <Added on Aug. 16, 2023>

[This Article Wholly Amended on Apr. 15, 2010]

Article 49-2(Special Cases on Corporate Restructuring Real Estate Investment Trusts) #

(1) Each corporate restructuring real estate investment trust shall meet the requirements stipulated by this Act and at least 70/100 of its total assets shall be represented by the following real estate:

1. Real estate that any enterprise sells to redeem its debts and liabilities it owes to any creditor financial institution;

2. Real estate sold to implement an agreement that is concluded with a creditor financial institution for the purpose of improving the financial structure;

3. Real estate sold according to the procedures for rehabilitation provided for in the Debtor Rehabilitation and Bankruptcy Act;

4. Real estate that is recognized by the Financial Services Commission as being necessary to back up the corporate restructuring of any enterprise.

(2) If the Minister of Land, Infrastructure and Transport intends to make registration of any corporate restructuring real estate investment trust (excluding a corporate restructuring real estate investment trust that is a real estate investment trust offering its shares to the public pursuant to Article 49-3(1)) in accordance with Article 9-2, he or she shall, in advance, listen to opinions of the Financial Services Commission with regard thereto. <Amended on Mar. 23, 2013; Jan. 19, 2016>

(3) Articles 14-8,15,24(1) and (2), and 25(1) shall not apply to corporate restructuring real estate investment trusts. <Amended on Dec. 18, 2012; Oct. 24, 2017>

(4) Articles 11-2, 14 (2), 14-3 through 14-7, 22-2, 28 (3), 44-3 and 49 (4) shall apply mutatis mutandis to corporate restructuring real estate investment trusts. In such cases, an "entrusted management real estate investment trust" shall be construed as a "corporate restructuring real estate investment trust". <Amended on Dec. 18, 2012>

(5) In cases of making an investment in a corporate restructuring real estate investment trust, the relevant investment shall not be governed by the limitations on the investment limit, asset management, and investment pursuant to any of the following Acts:

1. Article 37(1) and (2) of the Banking Act;

2. Articles 106,108, and 109 of the Insurance Business Act;

3. Article 344 of the Financial Investment Services and Capital Markets Act;

4. Other statutes prescribed by Presidential Decree.

(6) Where a corporate restructuring real estate investment trust is a subsidiary company of a bank (hereafter referred to as "bank" in this paragraph) pursuant to Article 2(1)2 of the Banking Act, the relevant corporate restructuring real estate investment trust shall not be deemed as a subsidiary company of a financial institution in calculating the ceiling of credit offering to a subsidiary company pursuant to Article 37(3) of the Banking Act. <Amended on May 17, 2010>

[This Article Wholly Amended on Apr. 15, 2010]

Article 49-3(Special Cases concerning Real Estate Investment Trust Offering Its shares to Public) #

(1) Articles 11 through 16,28-2,30 through 43,50 through 53,56,58,61 through 65,80 through 84, subparagraphs 2,3 and 6 through 8 of Article 85, Articles 86 through 95,181 through 186 (excluding Article 184(4)),194 through 206,229 through 234,234-2,235 through 249,249-2 through 249-22,250 through 253, and 415 through 425 of the Financial Investment Services and Capital Markets Act; Articles 11,12,14,16,22(6),24 through 28,44,45, and 47 through 66 of the Act on the Protection of Financial Consumers; and the Act on Corporate Governance of Financial Companies shall not apply to a real estate investment trust offering its stocks to the public (referring to a real estate investment trust that is not a privately placed fund referred to in Article 9(19) of the Financial Investment Services and Capital Markets Act; hereinafter the same shall apply) and asset management companies (excluding an asset management company entrusted with investment and management of assets exclusively by real estate investment trusts which are not real estate investment trusts offering their stocks to the public). <Amended on Jul. 24, 2015; Jul. 31, 2015; Jan. 19, 2016; Mar. 24, 2020>

(2) Where the Minister of Land, Infrastructure and Transport grants authorization under Article 22-3 for an asset management company (excluding an asset management company entrusted with the investment and management of assets exclusively by a real estate investment trust which is not a real estate investment trust offering its shares to the public), he or she shall consult with the Financial Services Commission in advance. <Amended on Mar. 23, 2013; Jan. 19, 2016; Aug. 16, 2023>

(3) A person referred to in Article 4(1)1 or 2 of the Act on the Management and Promotion of Real Estate Development Business may provide a real estate investment trust offering its shares to the public (including real estate investment trusts where a public offering of shares is scheduled under Article 14-8(1) and (2) or where such trusts are established to support a real estate investment trust offering its shares to the public) with necessary support, such as supply of assets held by the person, investment, or loans. <Added on Dec. 22, 2020>

[This Article Wholly Amended on Apr. 15, 2010]

Article 49-4(Establishment of Association) #

(1) A self-managed real estate investment trust, asset management company or real estate investment advisory company may establish the association (hereinafter referred to as the "association") of a self-managed real estate investment trust, asset management company or real estate investment advisory company in order to promote specialization in work related to real estate investment trusts and sound development thereof.

(2) The association shall be a corporation.

(3) The association shall be established by effecting the registration of association in the place in which its main office is located.

(4) To establish the association, three or more persons from a self-managed real estate investment trust, asset management company or real estate investment advisory company shall become the promoters to draw up the articles of association, and obtain authorization for establishment from the Minister of Land, Infrastructure and Transport after a resolution of the inaugural general meeting. <Amended on Mar. 23, 2013>

(5) Where any of the following occurs, the Minister of Land, Infrastructure and Transport may revoke the authorization for establishment of the association: <Amended on Mar. 23, 2013>

1. Where an authorization for establishment is obtained by fraud or other improper means;

2. Where any condition governing the grant of authorization for establishment is violated;

3. Where the purpose of the association cannot be achieved;

4. Where any project unsuitable for the establishment purpose, is conducted;

5. Where the association fails to comply with orders to report, submit documents, etc., rejects, interferes with or refrains itself from examination and inspection, makes false reports or submits false documents, in violation of Article 49-5.

(6) Matters to be stated in the article of association and other necessary matters shall be prescribed by Presidential Decree.

(7) Unless provided for by this Act concerning the association, the provisions concerning an incorporated association specified by the Civil Act shall apply mutatis mutandis.

[This Article Added on Apr. 15, 2010]

Article 49-9(Designation of support center for real estate investment companies) #

(1) In order to efficiently conduct affairs relating to support and supervision for real estate investment companies, asset management companies, and real estate investment advisory companies, the Minister of Land, Infrastructure and Transport may designate an institution falling under any of the following subparagraphs as a support center for real estate investment companies (hereinafter referred to as "support center"), taking into consideration the expertise regarding real estate investment companies:

1. Government-funded research institutes under the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes;

2. Public institutions under Article 4 of the Act on the Management of Public Institutions.

(2) The support center shall conduct the following affairs:

1. Support for authorization for business, registration, registration of special cases, report on incorporation, authorization for modification, and registration of modification under Articles 9(1), 9-2(1), 26-3, 26-4, and 40(1);

2. Support for authorization for incorporation and authorization for modification of asset management companies under Articles 22-3(1) and 40(4);

3. Assessment of the actual status of business management and risks of asset management companies under Article 22-3(10);

4. Support for inspection of affairs or property, etc. of a real estate investment company, etc. under Article 39(1);

5. Establishment and operation of an information system on real estate investment companies under Article 49-6;

6. Research, appraisal, analysis, and advisory services related to real estate investment;

7. Other affairs prescribed by Decree of the Ministry of Land, Infrastructure and Transport for support and supervision for real estate investment companies, etc.

(3) The Minster of Land, Infrastructure and Transport may subsidize the support center for expenses incurred in conducting its affairs within the budget.

(4) The Minister of Land, Infrastructure and Transport shall revoke the designation where the support center falls under subparagraph 1, and may revoke the designation where it falls under subparagraph 2:

1. Where it has been designated as such by fraud or other improper means;

2. Where it violates any of the conditions of designation in conducting its affairs, other than those specified in paragraph (2).

(5) The Minister of Land, Infrastructure and Transport may require the support center to report matters relating to its affairs or submit data, or issue other necessary orders.

(6) Except as provided in paragraphs (1) through (5), matters necessary for the designation, operation, supervision, etc. shall be prescribed by Decree of the Ministry of Land, Infrastructure and Transport.

[This Article Added on May 27, 2025]

Article 50(Penalty provisions) #

Any of the following persons shall be punished by imprisonment with labor for not more than 5 years or by a fine not exceeding 100 million won: <Amended on Dec. 18, 2012; Jun. 22, 2015; Jan. 19, 2016; Aug. 20, 2019; Dec. 22, 2020; Apr. 13, 2021; Feb. 20, 2024; May 27, 2025>

1. A person who conducts business referred to in the subparagraphs of Article 21(2) with respect to Article 21(1)1 through 5, or makes a public offering or public sale (referring to a public offering, public sale, or offering securities for sale under Article 9(7) and (9) of the Financial Investment Services and Capital Markets Act) by making use of the name "real estate investment company", without obtaining authorization for business under Article 9, registration under Article 9-2, registration of special cases under Article 26-3, or report on incorporation under Article 26-4;

2. Where it obtains authorization for business under Article 9, registration under Article 9-2, registration of special cases under Article 26-3, report on incorporation under Article 26-4, or authorization or registration of modification under Article 40 by fraud or other improper means;

3. A person who issues new stocks by receiving in-kind contributions before it prepares the minimum capital under Article 10 (5 billion won in the case of a project real estate investment company) after obtaining authorization for business or registering its business, in violation of Article 19(1);

4. A person who invests in and manages assets, in violation of Article 21 or 26-4(3);

5. A person who trades real estate or securities by using undisclosed information regarding the asset management of a real estate investment trust or who allows a third party to use such information, in violation of Article 32;

6. A person who obtains authorization for incorporation of an asset management company under Article 22-3, or authorization for modifications under Article 40(4) by fraud or other improper means;

6-2. A person entrusted by an entrusted management real estate investment trust with the investment and management of assets without obtaining authorization under Article 22-3(1);

7. A person who borrows funds or issues bonds by using the name "real estate investment trust" without obtaining authorization for business pursuant to Article 9 or making registration under Articles 9-2 and 26-3, in violation of Article 26-3(3) or 29(1).

[This Article Wholly Amended on Apr. 15, 2010]

Article 51(Penalty provisions) #

Any of the following persons shall be punished by imprisonment with labor for not more than 3 years or by a fine not exceeding 50 million won: <Amended on Dec. 18, 2012; Jul. 16, 2013; Jan. 19, 2016; Apr. 13, 2021; May 27, 2025>

1. A person who fails to submit a report on incorporation under Article 8-2(1) or a report on the current status of the company after incorporation thereof under paragraph (2) of the said Article, or submits such report by fraud or other improper means;

1-2. A person who exercises voting rights, in violation of Article 11(4);

2. A person who issues new stocks by allotment to persons, other than shareholders, before authorization, registration for business, or report on incorporation, in violation of Article 9(4), 9-2(6), 26-3(7), or 26-4(5); provided, where he or she offers stocks to the public under Article 9(7) of the Financial Investment Services and Capital Markets Act, subparagraph 1 of Article 50 shall apply;

3. A person who makes a public offering of stocks issued by a real estate investment trust before it obtains authorization/registration for business, or authorization or permission for a real estate development project, in violation of Article 14-8(1);

4. A person who makes in-kind contributions or receives any in-kind contribution, without having the value of real estate appraised pursuant to Article 19(4);

5. A person who registers a real estate investment advisory company pursuant to Article 23(1) by fraud or other improper means;

6. A person who manages assets, in violation of Article 25(1);

7. Deleted; <Jun. 22, 2015>

8. A person who performs transactions, in violation of Article 22-2(3) (including where the provisions are applied mutatis mutandis under Article 49-2(4));

8-2. A person who disposes of stocks, in violation of Article 26-3(4);

9. A person who manages assets, in violation of Article 27(1) or (3);

10. A person who borrows funds or issues bonds, in violation of Article 26-3(6) or 29;

11. A person who enters into a transaction with a person falling under any subparagraph of Article 30, in violation of the same Article;

11-2. A person who lends his or her business title to other persons to cause them perform the works under Article 4, in violation of Article 34-2;

12. A person who manages assets, in violation of Article 49-2(1).

[This Article Wholly Amended on Apr. 15, 2010]

Article 52(Penalty Provisions) #

Any of the following persons shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding 10 million won: <Amended on Dec. 18, 2012; Jun. 22, 2015; Jan. 19, 2016; Aug. 14, 2018; Dec. 22, 2020; Aug. 16, 2023>

1. A person who fails to offer stock subscription forms or an investor's guide or offers false stock subscription forms or false investor's guide, in violation of Article 17;

2. A person who violates the disposal order pursuant to Article 15(3) or (4);

2-2. A person who violates the disposal order pursuant to Article 22-4(3);

3. A person who disposes of real estate, in violation of Article 24(1) or (2);

4. A person who fails to prepare a first-hand report pursuant to Article 24(3) or prepares a false first-hand report;

4-2. A person who has not distributed at least 90/100 of the distribution limit of profits of the relevant business year of a real estate investment trust to stockholders, in violation of Article 28(1), or a person who has made a resolution for the distribution of profits, in violation of paragraph (4) of the said Article;

4-3. A person who fails to distribute dividends at least 50/100 of the dividend limit for the relevant year of a self-managed real estate investment trust to its shareholders, in violation of Article 28(2);

5. A person who violates the code of conduct pursuant to Article 33;

6. A person who fails to deposit securities with the Korea Securities Depository, in violation of Article 35(3);

7. A person who fails to separately manage assets, in violation of Article 36(3);

8. A person who fails to publish an investment report or publishes a false investment report, in violation of Article 37(1);

8-2. A person who fails to publish, or falsely publishes, the relevant matters in violation of Article 37(3);

9. A person who performs any act falling under any subparagraph of Article 40(1) without obtaining authorization or making registration in accordance with the same paragraph of the same Article;

9-2. A person who fails to obtain authorization for modifications, in violation of Article 40(4);

10. A person who fails to comply with the corrective order or supplement order pursuant to Article 41(3).

[This Article Wholly Amended on Apr. 15, 2010]

Article 54(Administrative fines) #

(1) Any of the following persons shall be subject to an administrative fine not exceeding 10 million won: <Amended on Dec. 18, 2012; Jul. 16, 2013; Jun. 22, 2015; Jan. 19, 2016; Aug. 16, 2023; May 27, 2025>

1. A person who uses the name of a real estate investment trust or any similar name (including characters in a foreign language prescribed by Presidential Decree), in violation of Article 3(4);

2. Deleted; <Jun. 22, 2015>

3. A person who fails to comply with an order to dispose of shares under Article 11(3);

4. A person who fails to make a public offering of at least 30/100 of the total number of shares issued within 3 years (5 years in the case of a project real estate investment company) from the date he or she obtains authorization for business or registers its business, in violation of Article 14-8(2);

4-2. A person who fails to disclose information on the relevant public offering, in violation of Article 14-8(5);

5. A person who fails to list stocks on the stock exchange in violation of Article 20(1);

6. A person who fails to employ full-time asset management specialists in violation of Article 22(1);

7. A person who concurrently conducts other business in violation of Article 22-3(3);

8. A person who uses the name "real estate investment trust advisory" or any similar name (including characters in a foreign language prescribed by Presidential Decree), in violation of Article 23(4);

9. A person who violates accounting standards prescribed under Article 25-2(1);

10. Deleted; <Jun. 22, 2015>

11. A person who fails to entrust the custody of assets and affairs related thereto in violation of Article 35(1);

12. A person who refuses, interferes with or evades the submission of materials, a report, or inspection thereof under Article 39(1) or Article 39-2(1), or submits false data or makes a false report;

12-2. Deleted; <Dec. 22, 2020>

12-3. A person who fails to make a report under Article 40(2);

13. A person who fails to establish internal control standards, in violation of Article 47(1);

14. A person who fails to employ a full-time compliance officer, in violation of Article 47(2).

(2) Any of the following persons shall be subject to an administrative fine not exceeding five million won: <Amended on Dec. 18, 2012; Mar. 23, 2013; Jul. 16, 2013; Jun. 9, 2020; Dec. 22, 2020; Aug. 16, 2023>

1. A person who fails to implement a measure required under Article 8-2(3);

2. A person who fails to submit data or submits false data, in violation of Article 11(5);

3. A person who establishes a branch office, employs an employee or full-time executive officer, in violation of Article 11-2;

4. A person who fails to inform an entrusted management real estate investment trust in writing, of a person who is to perform duties of a corporate director, in violation of the latter part of Article 14-5(3);

5. A person who fails to set conditions equally for the issuance of stocks, in violation of Article 18;

5-2. A person who fails to receive prior education under Article 22(2) or continuing education under paragraphs (3) and (4) of the same Article without good cause;

6. A person who invests in a real estate development project without undergoing the appraisal of a real estate investment trust advisory company, or a person who fails to submit an appraisal report prepared by a real estate investment trust advisory company to the Minister of Land, Infrastructure and Transport until one month before he or she invests in a real estate development project, in violation of Article 26(3);

7. A person employed in two jobs concurrently or holds concurrent posts, in violation of Article 31(2);

8. Deleted; <May 27, 2025>

9. Deleted; <Aug. 14, 2018>

10. A person who fails to implement measures under Article 39(2);

11. A person who fails to perform his or her duty to report under Article 41(1) or (2).

(3) Administrative fines pursuant to paragraphs (1) and (2) shall be imposed and collected by the Minister of Land, Infrastructure and Transport, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013>

[This Article Wholly Amended on Apr. 15, 2010]

REAL ESTATE INVESTMENT COMPANY ACT

Article 1(Purpose) #

Article 2(Definitions) #

Article 3(Corporate Personality) #

Article 4(Scope of Service) #

Article 5(Incorporation of Real Estate Investment Trusts) #

Article 5-2(Special Cases concerning Conversion of Self-Managed Real Estate Investment Trusts into Entrusted Management Real Estate Investment Trusts) #

Article 6(Start-Up Capital) #

Article 7(Promoters) #

Article 8(Articles of Incorporation) #

Article 8-2(Report on Incorporation of Self-Managed Real Estate Investment Trusts) #

Article 9(Authorization for Business) #

Article 9-2(Registration) #

Article 10(Minimum Capital) #

Article 11(Examination for Eligibility as Major Investors of Self-Managed Real Estate Investment Trusts) #

Article 11-2(Prohibition against Opening Branch Office of Entrusted Management Real Estate Investment Trusts) #

Article 12(Matters Subject to Resolution by General Meetings of Shareholders) #

Article 13(Matters Subject to Resolution by Board of Directors) #

Article 14(Qualification for Directors) #

Article 14 #

Article 14-2(Qualification for Auditors) #

Article 14-3(Appointment of Corporate Directors and Supervisory Directors) #

Article 14-4(Qualification for Corporate Directors) #

Article 14-5(Duties of Corporate Directors) #

Article 14-6(Qualification for Supervisory Directors) #

Article 14-7(Duties of Supervisory Directors) #

Article 14-8(Public offering of shares) #

Article 15(Dispersion of Stocks) #

Article 16(Exceptions to Upper Limit of Stock Ownership for Each Person) #

Article 17(Application for Stocks) #

Article 18(Terms of Issuance) #

Article 19(In-kind contributions) #

Article 20(Listing of Stocks) #

Article 20-2(Shareholders' Rights to Claim on Purchase of Stocks by Real Estate Investment Trusts) #

Article 21(Methods of Investment and Management of Assets) #

Article 22(Asset Management Specialists of Self-Managed Real Estate Investment Trusts) #

Article 22-2(Business Commissioned by Entrusted Management Real Estate Investment Trusts) #

Article 22-3(Authorization for Asset Management Companies) #

Article 22-4(Restrictions on Acquisition of Stocks by Asset Management Companies) #

Article 22-5(Special Cases concerning Incorporation of Asset Management Company by Self-Managed Real Estate Investment Trust) #

Article 23(Registration of Real Estate Investment Advisory Companies) #

Article 24(Limitations on Disposal of Real Estate) #

Article 25(Asset Portfolio) #

Article 25-2(Accounting) #

Article 25-3(Credit Rating) #

Article 26(Investment in Real Estate Development Projects) #

Article 26-2 #

Article 26-3(Special Cases concerning Investment in Development Projects of Land Provided for Compensation) #

Article 26-4(Special cases regarding project real estate investment companies) #

Article 27(Investment in Securities) #

Article 28(Dividends) #

Article 29(Borrowing of Funds and Issuance of Corporate Bonds) #

Article 30(Limitations on Transactions) #

Article 31(Limitations on Concurrent Engagement) #

Article 32(Prohibition on Use of Undisclosed Asset Management Information) #

Article 33(Code of Conduct for Executive Officers and Employees) #

Article 34(Responsibility of Executive Officers and Employees to Indemnification for Damage) #

Article 34-2(Prohibition of Title Lending) #

Article 35(Entrustment of Asset Custody) #

Article 36(Responsibility of Asset Custody Organization) #

Article 37(Investment report and disclosure) #

Article 38 #

Article 39(Supervision and Inspection) #

Article 39-2(Supervision of the Financial Services Commission) #

Article 40(Authorization for modifications) #

Article 41(Matters to be reported) #

Article 42(Revocation of authorization for business) #

Article 42-2(Access to Land) #

Article 43(Merger) #

Article 44(Dissolution) #

Article 44-2(Peremptory Notice to Creditors at Time of Liquidation) #

Article 44-3(Special Cases on Dissolution of Entrusted Management Real Estate Investment Trusts) #

Article 45(Registration of Incorporation) #

Article 46(Commissioning registration of dissolution) #

Article 47(Formulation of Internal Control Standards) #

Article 48(Hearings) #

Article 49(Relationship to Other Statutes) #

Article 49-2(Special Cases on Corporate Restructuring Real Estate Investment Trusts) #

Article 49-3(Special Cases concerning Real Estate Investment Trust Offering Its shares to Public) #

Article 49-4(Establishment of Association) #