ENFORCEMENT DECREE OF THE REAL ESTATE INVESTMENT COMPANY ACT

Article 1(Purpose) #

The purpose of this Decree is to prescribe matters mandated by the Real Estate Investment Company Act and matters necessary for the enforcement thereof.

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

Article 2(Definitions) #

(1) "Collective investment securities prescribed by Presidential Decree" in subparagraph 3b of Article 2 of the Real Estate Investment Company Act (hereinafter referred to as the "Act") means collective investment securities under Article 9(11) of that Act (hereinafter referred to as "collective investment securities") issued by a real estate fund under subparagraph 2 of Article 229 of the Financial Investment Services and Capital Markets Act (including general private equity funds under Article 9(19)2 of that Act which invests more than 80 percent of the collective investment property in real estate prescribed in subparagraph 2 of Article 229 of that Act; hereinafter referred to as "real estate fund"); <Amended on Jul. 19, 2016; Feb. 21, 2020; Oct. 21, 2021>

(2) "Asset-backed securities ... prescribed by Presidential Decree" in subparagraph 3 c of Article 2 of the Act means asset-backed securities issued on the basis of the relevant asset-backed securities, of which aggregate of the assets falling under each of the following subparagraphs includes at least 70/100 of the value of asset-backed securities (referring to asset-backed securities under subparagraph 3 of Article 2 of the Asset-Backed Securitization Act):

1. Real estate;

2. Real estate sale claims (referring to sale claims arising from sale, lease, etc. of real estate);

3. Real estate collateral bonds.

(3) "Securities ... prescribed by Presidential Decree" in subparagraph 3g of Article 2 of the Act means any of the following stocks and bonds: <Amended on Apr. 10, 2012; Jan. 16, 2014; Aug. 11, 2016; Feb. 17, 2021>

1. Urban or Gun planning facility bonds under Article 47(2) of the National Land Planning and Utilization Act;

2. Land redemption bonds under Article 23(1) of the Urban Development Act;

3. Redeemable housing bonds under Article 80(1) of the Housing Act;

4. Land redemption bonds under Article 20(2) of the Housing Site Development Promotion Act;

5. Bonds issued in accordance with Article 63(7) of the Act on Acquisition of and Compensation for Land for Public Works Projects;

6. Real estate collateral bonds;

7. Bonds of a corporation meeting the requirements under Article 104-31(1) of the Act on Restriction on Special Cases concerning Taxation; provided, bonds falling under Article 27(1)1b of this Decree shall be excluded herefrom;

8. Stocks and bonds of a public-private partnership project corporation under Article 14 of the Act on Public-Private Partnerships in Infrastructure or bonds of an infrastructure facilities fund under Article 41 of that Act; provided, stocks and bonds falling under Article 27(1)1c of this Decree shall be excluded herefrom.

(4) "Projects prescribed by Presidential Decree" in subparagraph 4 d of Article 2 of the Act means any of the following: <Added on Jun. 17, 2013; Jul. 19, 2016; Nov. 25, 2025>

1. A project to extend, reconstruct, or remodel buildings or other artificial structures;

2. A project to relocate a building or any other artificial structure.

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

[Title Amended on Jun. 17, 2013]

Article 2-2(Restrictions on trade names of persons other than real estate investment companies) #

"Characters in a foreign language prescribed by Presidential Decree" in Article 3(4) of the Act means REITs (including the Korean language characters) or other foreign language characters with similar meanings (including the Korean language characters).

[This Article Added on Feb. 13, 2024]

Article 3 #

Deleted. <Oct. 15, 2007>

Article 4 #

Deleted. <Oct. 15, 2007>

Article 5(Finance-related statutes) #

(1) "Statutes related to finance ... prescribed by Presidential Decree" in subparagraph 3 of Article 7 of the Act means the following statutes: <Amended on Mar. 24, 2014; May 31, 2016; Jul. 28, 2016; Mar. 23, 2021; Feb. 17, 2022; Aug. 23, 2022>

1. The Bank of Korea Act;

2. The Banking Act;

3. The Korea Development Bank Act;

4. The Industrial Bank of Korea Act;

5. The Export-Import Bank of Korea Act;

6. The Financial Investment Services and Capital Markets Act;

7. Deleted; <Dec. 30, 2014>

8. The Insurance Business Act;

9. The Financial Holding Companies Act;

10. The Mutual Savings Banks Act;

11. The Specialized Credit Finance Business Act;

12. The Korea Technology Credit Guarantee Fund Act;

13. The Korea Technology Finance Corporation Act;

14. The Agricultural Cooperatives Act;

15. The Fisheries Cooperatives Act;

16. The Credit Unions Act;

17. The Community Credit Cooperatives Act;

18. The Venture Investment Promotion Act;

19. The Credit Information Use and Protection Act;

20. The Foreign Exchange Transactions Act (including the Foreign Exchange Control Act before it was repealed in accordance with the Foreign Exchange Transactions Act (Act No. 5550) on September 16, 1998);

21. The Act on the Establishment of Financial Services Commission;

22. The Asset-Backed Securitization Act;

23. The Act on the Establishment of Korea Asset Management Corporation;

24. The Act on Real Name Financial Transactions and Confidentiality;

25. The Foreign Investment Promotion Act (including the Foreign Investment and Foreign Capital Inducement Act before it was repealed in accordance with the Foreign Investment Promotion Act (Act No. 5559) on September 16, 1998);

26. The Act on the Structural Improvement of the Financial Industry;

27. The Korea Housing Finance Corporation Act;

28. The Housing Act;

29. The Depositor Protection Act;

30. The Act on Corporate Governance of Financial Companies;

31. The Act on the Protection of Financial Consumers.

(2) "Person ...<omitted>... prescribed by Presidential Decree" in subparagraph 5 of Article 7 of the Act means any of the following persons as an executive officer or employee (referring to an executive officer or employee as at the time a ground for timely corrective measures under Article 10 of the Act on the Structural Improvement of the Financial Industry occurs for a corporation or company the permission, the authorization, etc. of which has been revoked in accordance with Article 14(2) of that Act) as at the time a ground for cancellation of business permission, authorization, registration, etc. occurs: <Amended on Mar. 23, 2013>

1. An auditor or a member of the audit committee;

2. An executive officer who receives a caution, warning, reprimand, suspension of performance of duties, request for dismissal from office, or other measures from the Minister of Land, Infrastructure and Transport, the Financial Services Commission, or the Governor of the Financial Supervisory Service established in accordance with the Act on the Establishment of Financial Services Commission (hereinafter referred to as the "Governor of the Financial Supervisory Service") due to any illegal or unjust act for the ground for cancellation of business permission, authorization, registration, etc.;

3. An employee who has been subject to suspension of performance of his or her duties or severer measures taken by the Minister of Land, Infrastructure and Transport, the Financial Services Commission, or the Governor of the Financial Supervisory Service for an unlawful or unjust act for the grounds for cancellation of business permission, authorization, registration, etc.;

4. A person subject to sanctions falling under subparagraph 2 or 3 who resigns from office or retires from office before he or she is subject to such sanctions.

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

Article 6 #

Deleted. <Oct. 15, 2007>

Article 7(Matters to be entered in articles of incorporation) #

"Matters prescribed by Presidential Decree" in Article 8(1)15 of the Act means the following:

1. Matters regarding general meeting of shareholders and the board of directors;

2. Matters regarding executive officers;

3. Matters regarding accounting;

4. Matters regarding in-kind contributions;

5. Matters regarding request for purchase of stocks;

6. Matters regarding protection of investors.

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

Article 7-2(Reporting on incorporation of self-managed real estate investment companies) #

(1) A report on incorporation under Article 8-2(1) of the Act shall include the following:

1. Trade name;

2. Location of the main office;

3. Matters regarding incorporators and executive officers;

4. Matters regarding capital.

(2) A self-managed real estate investment company shall submit a report on incorporation under paragraph (1), accompanied by the following documents; in such cases, the Minister of Land, Infrastructure and Transport shall verify the corporation registration certificate through administrative data matching under Article 36(1) of the Electronic Government Act:

1. Articles of incorporation;

2. Minutes of incorporators‘ meetings;

3. Career certificates of incorporators and executive officers;

4. Documents verifying the stock subscription.

(3) A company status report after its incorporation under Article 8-2(2) of the Act shall include the matters under the subparagraphs of paragraph (1) (excluding matters regarding incorporators under paragraph (1)3).

(4) A self-managed real estate investment company shall submit a report under paragraph (3), accompanied by the documents under subparagraphs 1, 3 (excluding career certificates of incorporators), and 4 of paragraph (2) within 10 days from the date on which 3 months have elapsed from the date of submission of the report on its incorporation.

[This Article Added on Jun. 17, 2013]

Article 8(Authorization for business of real estate investment companies) #

(1) A person who intends to obtain authorization for business of a real estate investment company in accordance with the main clause of Article 9(1) of the Act shall prepare an application for authorization of business, stating the following matters, and submit it to the Minister of Land, Infrastructure and Transport: <Amended on Mar. 23, 2013; Jun. 17, 2013; Feb. 21, 2020>

1. Types of real estate investment companies;

2. Trade name and location of the main office;

3. Matters regarding capital;

4. Matters regarding incorporators and executive officers;

5. Matters regarding major investment targets and management methods.

6. Matters regarding asset management specialists under Article 22 of the Act.

(2) An application for authorization for business under paragraph (1) shall be accompanied by the following documents: <Amended on Jun. 17, 2013; Feb. 21, 2020>

1. Minutes of incorporators‘ meetings;

2. Resumes and career certificates of incorporators, executive officers, and asset management specialists;

3. Articles of incorporation;

4. Documents verifying the stock subscription;

5. Documents stating names and locations of the main office and branches;

6. Documents stating types and methods of affairs;

7. Where an entrustment contract for investment and management of assets has been concluded, a copy of the entrustment contract;

8. A copy of a contract for asset custody concluded with an asset custodian under Article 35(1) of the Act (hereinafter referred to as "asset custodian");

9. A business plan (including estimated financial statements) and a statement of estimated revenue and expenditure for 3 business years after authorization for business is granted;

10. Where a public offering of stocks is to be made in accordance with Article 14-8(2) of the Act, a plan for such public offering of stocks;

11. A draft investment prospectus under Article 17(2) of the Act;

12. Internal control criteria under Article 47(1) of the Act.

(3) "Affairs prescribed by Presidential Decree, such as investigations for acquiring real estate" in the proviso of Article 9(1) of the Act means the following affairs: <Added on Feb. 21, 2020>

1. Conclusion of a memorandum of understanding and a sales contract by methods determined and publicly notified by the Minister of Land, Infrastructure and Transport to acquire investment targets under Article 21(1)1 through 5 of the Act;

2. Legal advice, market research, appraisal, and financial analysis to review whether to invest in the investment targets under Article 21(1)1 through 5 of the Act;

3. Business registration under Article 8 of the Value-Added Tax Act;

4. Registration of real estate development business under Article 4(1) of the Act on the Management and Promotion of Real Estate Development Business;

5. Registration of housing construction projects, etc. under Article 4 of the Housing Act;

6. Other affairs determined and publicly notified by the Minister of Land, Infrastructure and Transport as necessary to be implemented in advance to promote real estate development projects.

(4) "Matters prescribed by Presidential Decree" in Article 9(2)4 of the Act means the following matters: <Amended on Jun. 17, 2013>

1. Where a real estate investment company entrusts its affairs, appropriateness of the entrustment plan;

2. Whether Articles 19(1) and 29(1) of the Act have been violated;

3. Measures to protect investors in asset investment and management.

(5) Deleted. <Oct. 23, 2015>

(6) "Institution prescribed by Presidential Decree" in the proviso of Article 9(6) of the Act means any of the following institutions: <Added on Jan. 16, 2014>

1. A public institution under Article 4 of the Act on the Management of Public Institutions;

2. An institution under Article 38 of the Act on the Establishment of Financial Services Commission;

3. A trust business under Article 8(7) of the Financial Investment Services and Capital Markets Act and a real estate fund under subparagraph 2 of Article 229 of that Act;

4. Other real estate investment companies.

(7) "Bidding, auction, or other means prescribed by Presidential Decree" in the proviso of Article 9(6) of the Act means any of the following: <Amended on Oct. 28, 2014; Dec. 28, 2015>

1. Means of notifying the general public of the sale of real estate through public announcement of bidding, auction, public auction, etc., and supplying real estate through competition by recruiting prospective buyers thereof;

2. Means of supplying real estate in accordance with the supply procedures and criteria for price calculation prescribed by relevant statutes or regulations, such as the Industrial Sites and Development Act and the Special Act on Public Housing.

(8) Article 16(2) through (6) shall apply mutatis mutandis to appraisal methods, procedures, etc. under Article 9(7) of the Act. In such cases, "assets to be contributed in kind" or "assets contributed in kind" shall be construed as "real estate intended for business," "in-kind contributor" as "person who sells real estate intended for business," and "in-kind contributions" as "authorization for business or authorization for modification". <Added on Jan. 16, 2014; Oct. 28, 2014>

(9) "Institutions prescribed by Presidential Decree" in Article 9 (8) of the Act means the support center for real estate investment companies (hereinafter referred to as the "support center") designated in accordance with Article 49-9 (1) of the Act. < Added on Jan. 16, 2014; Oct. 23, 2015; Aug. 31, 2016; Dec. 8, 2020; Nov. 25, 2025>

(10) Where the Minister of Land, Infrastructure and Transport grants authorization for business to a real estate investment company, he or she shall notify the Financial Services Commission of the details thereof. <Amended on Mar. 23, 2013; Jun. 17, 2013; Jan. 16, 2014>

(11) Except as provided in this Decree, detailed matters necessary for authorization for business of a real estate investment company shall be determined by the Minister of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013; Jun. 17, 2013; Jan. 16, 2014>

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

Article 8-2(Examination on eligibility as major investors of self-managed real estate investment companies) #

(1) "Requirements prescribed by Presidential Decree" in Article 11(2)3 of the Act means the requirements specified in Appendix 1.

(2) The Minister of Land, Infrastructure and Transport may request major investors classified as follows to submit the following data in accordance with Article 11(5) of the Act:

1. In the case of corporations:

a. Financial statements;

b. A report on evaluation of business management status (applicable only to a corporation engaged in financial business);

c. Other data that the Minister of Land, Infrastructure and Transport deems necessary for examining the eligibility of major investors of self-managed real estate investment companies and publicly notifies;

2. In the case of individuals:

a. Where contributions are loans, a loan agreement of financial institutions;

b. Other data that the Minister of Land, Infrastructure and Transport deems necessary for examining the eligibility of major investors of self-managed real estate investment companies and publicly notifies.

[This Article Added on Jan. 16, 2014]

Article 8-3(Registration of real estate investment companies) #

(1) A person who intends to file for registration in accordance with the main clause, with the exception of the subparagraphs, of Article 9-2(1) of the Act shall submit an application for registration under paragraph (2) of that Article to the Minister of Land, Infrastructure and Transport, accompanied by the following documents: <Amended on Feb. 21, 2020>

1. Documents regarding Article 8(2)1, 3 through 8, 10, and 11;

2. Resumes and career certificates of incorporators and executive officers;

3. A business plan (including estimated financial statements) for 3 business years after registration.

(2) "Affairs prescribed by Presidential Decree, such as investigations for acquiring real estate" in the proviso, with the exception of the subparagraphs, of Article 9-2(1) of the Act means the affairs under the subparagraphs of Article 8(3). <Added on Feb. 21, 2020>

(3) In applying Article 9-2(1)2 of the Act, a person who falls under any of subparagraphs 27 through 30 of Article 12-3 shall not be included in the scope of shareholders under Article 14-8(3)1 of the Act. <Added on Jun. 22, 2021>

(4) An application for registration under Article 9-2(2) of the Act shall include the matters under Article 8(1)1 through 5. <Amended on Feb. 21, 2020; Jun. 22, 2021>

(5) "Time ... to supplement any defect in the application for registration and other period of time prescribed by Presidential Decree" in the latter part of Article 9-2(3) of the Act means the following: <Amended on Feb. 21, 2020; Jun. 22, 2021>

1. Period for supplementing defects in an application for registration under Article 9-2(4) of the Act;

2. Period required for receiving necessary data from relevant agencies to verify whether the requirements under Article 9-2(1) of the Act are satisfied;

3. Period required for hearing opinions of the Financial Services Commission or consulting with the Financial Services Commission in accordance with Articles 49-2(2) and 49-3(2) of the Act.

(6) Except as provided in paragraphs (1) through (5), detailed matters necessary for filing for registration, such as the form of an application for registration and methods of preparing the application, shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport. <Amended on Feb. 21, 2020; Jun. 22, 2021>

[This Article Added on Jul. 19, 2016]

Article 9(Matters subject to resolution by general meetings of shareholders) #

(1) "Matters regarding the conclusion of important contracts prescribed by Presidential Decree, such as the acquisition or disposal of assets in excess of 30/100 of the total assets" means the following: <Added on Feb. 21, 2020>

1. Matters regarding the conclusion of a contract for acquisition or disposal of assets in excess of 30/100 of the total assets or the conclusion of a modified contract therefor as at the end of the accounting period under Article 40(1)1;

2. Matters regarding the conclusion of a contract for entrustment of affairs with an asset management company or the conclusion of a modified contract therefor (including a contract for amendment of the remuneration received by an asset management company).

(2) "Matters regarding the change of any important parts prescribed by Presidential Decree" in Article 12(1)4 of the Act means any of the following: <Amended on Feb. 21, 2020>

1. Where a real estate development project, the objective of which is a real estate development project plan, is changed and falls under any other type of project under subparagraph 4 of Article 2 of the Act;

2. Where land, public waters, buildings, or other artificial structures, which are subject to a real estate development project plan, are changed;

3. Where the project cost or project scale of a real estate development project plan is changed by at least 30/100;

4. Where a real estate development project plan is revoked.

[This Article Added on Jun. 17, 2013]

Article 10(Matters subject to resolution by board of directors) #

"Amount prescribed by Presidential Decree" in Article 13(1)2 of the Act means an amount equivalent to 10/100 of the total assets of a real estate investment company.

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

Article 11(Qualification and duties for directors) #

(1) "Persons prescribed by Presidential Decree" in Article 14(2)3 of the Act means the spouse, lineal ascendants, or descendants of a person falling under Article 14(2)1 and 2 of the Act.

(2) The directors of a real estate investment company shall perform the following duties after undergoing a resolution of the board of directors: <Added on Feb. 21, 2020>

1. Payment of remuneration for asset management companies, asset custodians, and institutions entrusted with the public offering, private placement, or sales of stocks of a real estate investment company for entrusted management (hereinafter referred to as "sales company") or an institution entrusted with general affairs of a real estate investment company for entrusted management (hereinafter referred to as "institution entrusted with general clerical services") in accordance with Article 22-2(1) of the Act;

2. Matters regarding the distribution of money and stocks;

3. Matters prescribed by the articles of incorporation, which are deemed crucial to the operation of a real estate investment company;

4. Other matters determined and publicly notified by the Minister of Land, Infrastructure and Transport as necessary for protecting shareholders.

(3) If necessary to ascertain the affairs and asset status related to a real estate investment company, a director of the real estate investment company may request an asset management company, asset custodian, sales company, or institution entrusted with general clerical services to report on the affairs related to the real estate investment company and asset status thereof. <Amended on Feb. 21, 2020>

(4) A person who receives a request in accordance with paragraph (3) shall comply with such request unless there is a compelling reason not to do so. <Amended on Feb. 21, 2020>

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

Article 12(Qualification and duties for auditors) #

(1) "Person prescribed by Presidential Decree" in Article 14-2(2)4 of the Act means any of the following persons:

1. A director of the relevant real estate investment company;

2. A major shareholder of the relevant real estate investment company (referring to a shareholder holding at least 10/100 of the stocks; hereinafter the same shall apply);

3. A person who is continuously receiving remuneration from an asset management company or an asset custodian entrusted with the affairs of the relevant real estate investment company;

4. The spouse, lineal ascendants, or descendants of a person falling under any of subparagraphs 1 through 3;

5. A person whose audit is restricted in accordance with Article 21 of the Certified Public Accountant Act in relation to the relevant real estate investment company or a person who belongs to an accounting corporation whose audit is restricted in accordance with Article 33 of that Act.

(2) Where necessary to perform his or her duties, an auditor may request an asset management company, asset custodian, sales company, or institution entrusted with general clerical services to report on the affairs and accounting of the relevant real estate investment company.

(3) A person who receives a request in accordance with paragraph (2) shall comply with such request unless there is a compelling reason not to do so.

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

Article 12-2(Qualification for auditors) #

"Person prescribed by Presidential Decree" in Article 14-6(2)4 of the Act means any of the following persons:

1. An investment trader or investment broker under Article 8 of the Financial Investment Services and Capital Markets Act (in the case of a corporation, referring to an executive officer or employee of the relevant institution) who sells stocks of the relevant real estate investment company;

2. A specially related person (referring to a specially related person under Article 133(3) of the Financial Investment Services and Capital Markets Act) of a person falling under subparagraph 1.

[This Article Added on Jun. 17, 2013]

[Previous Article 12-2 moved to Article 12-3 <Jun. 17, 2013>]

Article 12-3(Exceptions to general subscription) #

"Shareholders prescribed by Presidential Decree" in Article 14-8(3)1 of the Act means the following persons: <Amended on Dec. 31, 2011; Oct. 29, 2012; Jun. 17, 2013; Jan. 16, 2014; Mar. 24, 2014; Dec. 30, 2014; Oct. 23, 2015; Jul. 19, 2016; Nov. 13, 2018; Feb. 21, 2020; Feb. 17, 2022; May 9, 2022; Nov. 25, 2025>

1. The State and local governments;

2. The Government Employees Pension Service under the Public Officials Pension Act;

3. The Korea Teachers Pension Foundation under the Pension for Private School Teachers and Staff Act;

4. The Public Officials Benefit Association under the Public Officials Benefit Association Act;

5. The Korean Federation of Community Credit Cooperatives under the Community Credit Cooperatives Act (limited to mutual aid projects);

6. The Military Mutual Aid Association under the Military Personnel Mutual Aid Association Act;

7. The Korean Teachers' Credit Union under the Korean Teachers' Credit Union Act;

8. The National Credit Union Federation of Korea under the Credit Unions Act (limited to mutual aid projects);

9. A mutual aid association under Article 54 of the Framework Act on the Construction Industry;

10. The Korea Land and Housing Corporation under the Korea Land and Housing Corporation Act;

11. The Korea Asset Management Corporation under the Act on the Establishment of Korea Asset Management Corporation;

12. Retirement pension trustees under the Act on the Guarantee of Employees' Retirement Benefits;

13. The National Health Insurance Service under the National Health Insurance Act;

14. The Police Mutual Aid Association under the Police Mutual Aid Association Act;

15. The Korea Local Finance Association under the Korea Local Finance Association Act;

16. The Construction Workers Mutual Aid Association under the Act on the Employment Improvement of Construction Workers;

17. A person who manages and operates the Fund in accordance with statutes prescribed in Appendix 2 of the National Finance Act (excluding subparagraphs 3, 8, and 27 of that Appendix);

18. The Korea Scientists and Engineers Mutual-Aid Association under the Korea Scientists and Engineers Mutual-Aid Association Act;

19. The Korea Fire Officials Credit Union under the Korea Fire Officials Credit Union Act;

20. The Specific Post Office Pension Service Agency under the Special Post Offices Act;

21. The National Forestry Cooperative Federation under the Forestry Cooperatives Act (limited to mutual aid projects);

22. The Small and Medium Enterprise Cooperatives under the Small and Medium Enterprise Cooperatives Act (limited to mutual aid projects);

23. A corporation that manages and operates postal savings funds under the Postal Savings and Insurance Act or postal insurance reserves under the Act on the Special Account for Postal Insurance;

24. The National Federation of Fisheries Cooperatives under the Fisheries Cooperatives Act (limited to mutual aid projects);

24-2. The Correctional Mutual Aid Association under the Correctional Mutual Aid Association Act;

25. Real estate investment companies owned by the National Pension Service under the National Pension Act (hereinafter referred to as the "National Pension Service"), or by persons falling under subparagraphs 1 through 24 or 24-2, solely or jointly owning more than 50/100 of the total number of stocks issued;

26. Real estate funds which own at least 75/100 of the total number of collective investment securities solely or jointly by the National Pension Service or persons falling under subparagraphs 1 through 24, or 24-2; in such cases, where a real estate fund is created or established as a feeder fund under the provisions, with the exception of the subparagraphs, of Article 233(1) of the Financial Investment Services and Capital Markets Act and owns 100/100 of the total number of collective investment securities issued by a master fund under the provisions, with the exception of the subparagraphs, of that paragraph, the relevant master fund shall be included;

27. Real estate investment companies whose stocks are listed on the securities market in accordance with Article 20 of the Act;

28. Professional investors under Article 9(5)3 through 5 of the Financial Investment Services and Capital Markets Act; in such cases, a real estate investment company in which a professional investor has invested shall consist of at least 70/100 of the total assets of the following assets:

a. Equity securities or debt securities of a real estate investment company offering its stocks to the public under Article 49-3(1) of the Act;

b. Equity securities or debt securities of a corporate restructuring real estate investment company;

29. A real estate fund which does not constitute a private equity fund under Article 9(19) of the Financial Investment Services and Capital Markets Act;

30. A trust business entity that manages specific money under subparagraph 1 of Article 103 of the Enforcement Decree of the Financial Investment Services and Capital Markets Act with a trustor exceeding the number prescribed in Article 14(2) of that Decree.

31. Other corporations, organizations, or collective investment schemes that the Minister of Land, Infrastructure, Transport and Tourism recognizes as having public interest and publicly notifies.

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

[Moved from Article 12-2 <Jun. 17, 2013>]

Article 13(Exceptions to individual shareholding limit) #

(1) "Shareholders prescribed by Presidential Decree" in Article 16(1) of the Act means any of the following persons: <Amended on Dec. 31, 2011; Jun. 17, 2013; Aug. 27, 2013; Jan. 16, 2014; Feb. 13, 2024>

1. Persons falling under any of the subparagraphs of Article 12-3;

2. Underwriters or incorporators who acquired remaining stocks after making a public offering of stocks in accordance with Article 14-8(2) of the Act; in such cases, the period during which they may hold such stocks shall be classified as follows:

a. Where the stocks issued by the relevant real estate investment company are listed on the securities market (hereinafter referred to as "securities market") of an exchange permitted in accordance with Article 373-2 of the Financial Investment Services and Capital Markets Act: The period of up to 1 year and 6 months from the date of listing of the relevant stocks;

b. In the case of stocks other than those under item a: The period of up to 1 year and 6 months from the date of acquisition of the relevant stocks.

(2) "Shareholders prescribed by Presidential Decree" in the proviso of Article 16(2) of the Act means any of the following persons under the subparagraphs of Article 12-3. <Amended on Jun. 17, 2013>

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

Article 14(Matters to be stated in stock subscription forms and investment prospectus) #

(1) "Matters prescribed by Presidential Decree" in Article 17(1)5 of the Act means the details of real estate subject to in-kind contributions and the number of stocks to be granted for such contributions.

(2) "Matters prescribed by Presidential Decree, such as the objective of its incorporation, investment plans, and matters regarding investment risk" in Article 17(2) of the Act means the following matters: <Amended on Oct. 23, 2015>

1. Trade name, purpose of incorporation, and location;

2. Total number of stocks to be issued and the par value per share;

3. Subscription period and place of subscription;

4. Date and place of payment;

5. Matters regarding the listing of issued stocks;

6. Investment targets, investment plans, and asset appraisal methods;

7. Matters regarding investment risks, such as the fact that the principal of investment is not guaranteed;

8. Methods for distribution of profits, etc.;

9. Outline of an entrustment contract of investment and management of assets;

10. Outline of an asset custody agreement with an asset custodian;

11. Matters regarding asset management specialists;

12. Matters regarding expenses paid following the entrustment of affairs and asset custody;

13. Other matters necessary for the protection of shareholders.

(3) A real estate investment company shall provide an investment prospectus stating the matters under the subparagraphs of paragraph (2) to the other party soliciting a subscription for underwriting of stocks and explain the main contents thereof.

(4) Except as provided in paragraphs (2) and (3), detailed matters necessary for providing an investment prospectus, such as the format and method of preparing an investment prospectus, shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport. <Added on Feb. 21, 2020>

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

Article 15(Issuance price of stocks) #

The issuance price of stocks under Article 18(2) of the Act shall be at least 70/100 of the weighted arithmetic average stock price (referring to the price calculated by dividing the total trading value of the relevant stocks traded in the securities market from the third trading day to the fifth trading day before the date of subscription) during such period; provided, where the stocks of the relevant real estate investment company are not listed on the securities market, the board of directors shall determine the issuance price in consideration of the amount calculated in accordance with subparagraph 1 and the matters under subparagraph 2: <Amended on Aug. 31, 2016; Feb. 21, 2020; Jan. 5, 2021; Jan. 21, 2022; May 9, 2022>

1. (The total value of individual assets calculated for each type of asset in accordance with the following methods with the base date for calculation being the day before the date of the meeting of the board of directors where the capital increase was decided - The total number of issued stocks) / The total number of issued stocks:

a. In the case of real estate: The method of calculation in accordance with Article 16 by an appraisal corporation, etc. under the Act on Appraisal and Certified Appraisers (hereinafter referred to as "appraisal corporation, etc."); provided, the acquisition value may be used as the standards within 1 year after acquisition;

b. In the case of securities: The method of calculation by applying mutatis mutandis Article 260 of the Enforcement Decree of the Financial Investment Services and Capital Markets Act; in such cases, "base date of appraisal" shall be construed as "base date of calculation";

c. In the case of money deposited at financial institutions: The method of adding the principal and interest on the base date of calculation;

d. In the case of other assets: The method of calculation based on the amount indicated in the statement of financial position;

2. The types of stocks to be issued and the terms and conditions of issuance.

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

Article 16(In-kind contributions) #

(1) Deleted. <Dec. 30, 2016>

(2) The appraisal of the value of asset to be invested in kind in accordance with Article 19(5) of the Act shall be made in accordance with the method of calculating the assessed value at the point of time for pricing by converting or discounting the net profit expected to be calculated in the future or future cash flows to an appropriate ratio or discount (hereinafter referred to as the "profit conversion method"). <Amended on Jul. 15, 2010; Jun. 17, 2013>

(3) In the case of assets to which it is unreasonable to apply the yield capitalization method, the relevant assets may be appraised in consideration of the characteristics of the assets in accordance with the principles and standards of appraisal under Article 3(3) of the Act on Appraisal and Certified Appraisers. <Amended on Jul. 15, 2010; Jun. 17, 2013; Aug. 31, 2016>

(4) An appraisal corporation, etc. which has appraised the value of assets contributed in kind in accordance with paragraphs (2) and (3) shall not be appointed as an inspector of the relevant real estate investment company under Article 422 of the Commercial Act, and the value appraisal by the relevant appraisal corporation, etc. shall not be substituted by an investigation by an inspector of the relevant in-kind contributions. <Amended on Jul. 15, 2010; Jun. 17, 2013; Jan. 21, 2022>

(5) The selection of an appraisal corporation, etc. which performs the duties of appraising assets contributed in kind, the adoption of an appraisal report on the value of assets contributed in kind, and the request for appointment of an inspector shall be subject to the consent of all directors. In such cases, no director who is an in-kind contributor shall participate in decision-making. <Amended on Jul. 15, 2010; Jan. 21, 2022>

(6) Where no in-kind contribution has been made within 1 year from the date of appraisal of the value of the assets contributed in kind, the in-kind contributions shall be re-appraised. <Added on Oct. 28, 2014>

[This Article Wholly Amended on Oct. 15, 2007]

Article 17(Shareholders' appraisal rights to real estate investment companies) #

(1) Where a real estate investment company notifies or publicly announces the convocation of a general meeting of shareholders in order to resolve the matters under the subparagraphs of Article 20-2(1) of the Act, it shall clearly state the details and the methods of exercising appraisal rights. In such cases, it shall also notify or publicly announce such matters to holders of non-voting shares under Article 370(1) of the Commercial Act.

(2) The purchase price of stocks under Article 20-2(2) of the Act shall be determined in accordance with Article 374-2(3) through (5) of the Commercial Act; provided, where the stocks of the relevant real estate investment company are listed on the securities market, the purchase price shall be determined in accordance with Article 165-5(3) of the Financial Investment Services and Capital Markets Act.

(3) No real estate investment company shall, upon receipt of request for purchase of stocks under Article 20-2(1) of the Act, charge the relevant claimant with fees or other expenses incurred in purchasing stocks.

(4) Where a real estate investment company has purchased stocks, it shall record the details thereof in the register of shareholders and shall retire such stocks or sell them within 1 year and 6 months from the date of purchase of such stocks.

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

Article 17-2(Objects and methods of loans) #

(1) "Persons prescribed by Presidential Decree, such as a corporation whose intended business is a real estate development project under subparagraph 4 of Article 2" in Article 21(2)3 of the Act means the following person: <Amended on Feb. 17, 2021; May 9, 2022>

1. A corporation engaged in real estate development projects (including real estate investment companies, real estate funds, and trust business entities engaged only in real estate trust business under the Financial Investment Services and Capital Markets Act);

2. A project operator under the Act on Public-Private Partnerships in Infrastructure;

3. A public-private partnership road business entity under Article 23-2(1) of the Toll Road Act;

4. A corporation established for real estate development and meeting the requirements under Article 104-31(1) of the Act on Restriction on Special Cases concerning Taxation.

(2) "Methods prescribed by Presidential Decree, such as creating a security right to real estate" in Article 21(2)3 of the Act means a method that satisfies all of the following requirements:

1. Its articles of incorporation shall stipulate matters regarding loans as methods of investment and management of assets;

2. It shall secure appropriate means for recovering loans, such as creating a security right to real estate or ensuring a guarantee for payment by a contractor, etc.;

3. The limits for loans shall be maintained at 100/100 of the value calculated by deducting the total amount of liabilities from the total amount of assets of the real estate investment company;

4. It shall comply with other matters regarding the methods and procedures for lending, as determined and publicly notified by the Minister of Land, Infrastructure and Transport, for the protection of investors.

[This Article Added on Feb. 21, 2020]

Article 18(Asset management specialists of self-managed real estate investment companies) #

(1) A self-managed real estate investment company [including a self-managed real estate investment company under the former part, with the exception of the subparagraphs, of Article 26-4(1) of the Act as a project real estate investment company (hereinafter referred to as a "project real estate investment company")] shall secure asset management specialists falling under any subparagraph of Article 22(1) of the Act in accordance with the following classifications: <Amended on Dec. 31, 2011; Nov. 25, 2025>

1. Upon notification of authorization for business under Article 9 of the Act or acceptance of report on incorporation under Article 26-4(1) of the Act: At least 3 persons;

2. Where 6 months elapse after obtaining authorization for business under Article 9 of the Act or acceptance of report on incorporation under Article 26-4(2) of the Act: At least 5 persons.

(2) "Persons ... prescribed by Presidential Decree" in Article 22(1)3 of the Act means any of the following persons: <Amended on Feb. 13, 2024>

1. A person who has worked for at least 5 years at a real estate investment company, an asset management company, a real estate investment advisory company under Article 23 of the Act (hereinafter referred to as "real estate investment advisory company"), or any other equivalent real estate-related company or institution, etc., with work experience in the acquisition, disposal, management, and development of real estate or advisory services for at least 3 years;

2. A person who has worked for at least 5 years at a foreign real estate investment company conducting the investment and management of real estate assets or an institution conducting business similar thereto, with work experience in the acquisition, disposal, management, development, or advisory services of real estate for at least 3 years;

3. A person who is an investment management specialist under Article 249-15(1)3 of the Financial Investment Services and Capital Markets Act and Article 271-21(3)3 of the Enforcement Decree of that Act, as determined and publicly notified by the Minister of Land, Infrastructure and Transport;

4. A person whose combined period of service under subparagraphs 1 through 3 is at least 5 years and whose combined period of work experience under subparagraphs 1 through 3 is at least 3 years; in such cases, the period of work experience in different professions during a certain period shall not be combined and the criteria for recognizing the period of service and work experience to be combined shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport.

(3) An educational institution that provides prior education under Article 22(2) of the Act (hereinafter referred to as "prior education") and continuing education under paragraphs (3) and (4) of that Article (hereinafter referred to as "continuing education") shall be any of the following institutions: <Amended on Mar. 23, 2013; Feb. 13, 2024>

1. Research institutes and organizations related to real estate and finance;

2. Universities under subparagraph 1 of Article 2 of the Higher Education Act;

3. Specialized educational institutions determined by the Minister of Land, Infrastructure and Transport in consultation with the heads of the relevant central administrative agencies.

(4) The curriculum of prior education shall include the following matters: <Amended on Feb. 13, 2024>

1. Matters related to the investment and management of real estate assets;

2. Matters related to statutes, taxes, accounting, and other systems related to real estate;

3. Matters regarding issuance and distribution of real estate-related securities and capital markets;

4. Matters regarding the appraisal and analysis of assets;

5. Matters regarding risk management;

6. Legal compliance with and professional ethics necessary for asset management specialists.

(5) The curriculum of continuing education shall include the following matters: <Added on Feb. 13, 2024>

1. Matters under subparagraphs 2, 5, and 6 of paragraph (4);

2. Matters regarding trends and prospects of changes in investment conditions in real estate markets.

(6) Prior education and continuing education shall be provided at the time prescribed in the relevant subparagraph in accordance with the following classifications; provided, where the Minister of Land, Infrastructure and Transport recognizes that the person subject to education has difficulty receiving the continuing education under subparagraphs 2 and 3 within the prescribed period due to unavoidable reasons, such as military service, pregnancy, or childbirth, he or she may defer the continuing education under that subparagraph until such reasons ceases to exist. <Added on Feb. 13, 2024; Sep. 30, 2025>

1. Prior education: Before conducting investment and management of assets;

2. Continuing education to be received in accordance with Article 22(3) of the Act: Within 3 months before and after the date on which every third year has elapsed from the date of completion of prior education (in the case of receiving continuing education in accordance with Article 9 of the Addenda to the Real Estate Investment Company Act (Act No. 19681), the date of completion of continuing education);

3. Continuing education to be received in accordance with Article 22(4) of the Act: Within 3 months from the date of re-employment as an asset management specialist; in such cases, a person who has received continuing education shall receive continuing education within 3 months before and after the date on which every third year has elapsed from the date of completion of continuing education, if he or she intends to continue to work as an asset management specialist.

(7) A person who has worked as a compliance officer under Article 47(2) of the Act for at least 1 year during the 2 years immediately preceding the base date of continuing education under paragraph (6)2 and 3 shall be exempted from legal compliance and professional ethics necessary for asset management specialists among the curriculum for continuing education under paragraph (5). <Added on Feb. 13, 2024>

(8) The education of asset management specialists under paragraphs (3) through (7) and other necessary details shall be determined by the Minister of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013; Feb. 13, 2024>

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

Article 19(Entrustment of affairs of entrusted management real estate investment companies) #

(1) A sales company shall be a person who has obtained authorization for investment trading or brokerage business under Article 12 of the Financial Investment Services and Capital Markets Act.

(2) An institution entrusted with general clerical services shall be a fund accounting and administration company under Article 254 of the Financial Investment Services and Capital Markets Act.

(3) The scope of affairs of an institution entrusted with general clerical services shall be as follows: <Amended on Feb. 21, 2020>

1. Affairs regarding the operation of entrusted management real estate investment companies;

2. Calculation of assets of entrusted management real estate investment companies;

3. Notification and disclosure under statutes or regulations or articles of incorporation;

4. Affairs regarding the convocation and the holding of a meeting of the board of directors or a general meeting of shareholders;

5. Other affairs entrusted by entrusted management real estate investment companies.

(4) The scope of affairs of an asset management company shall be as follows: <Added on Feb. 21, 2020>

1. Exercise of the voting rights on equity securities belonging to assets of real estate investment companies;

2. Investment and management of assets of real estate investment companies under Article 21(2) of the Act;

3. Selection of asset custodians, sales companies, and institutions entrusted with general clerical services by methods determined and publicly notified by the Minister of Land, Infrastructure and Transport;

4. Preparation of reports or details of disclosure prescribed by statutes or regulations and the articles of incorporation;

5. Affairs regarding application, etc. for authorization for business of real estate investment companies and authorization for modification thereof.

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

Article 20(Exception to restriction on transactions by entrusted management real estate investment companies) #

"Transactions prescribed by Presidential Decree" in the proviso of Article 22-2(3) of the Act means any of the following transactions:

1. Transactions by public sale, competitive bidding, or similar methods;

2. Transactions of leasing real estate held by an entrusted management real estate investment company at a price higher than the price determined by the board of directors;

3. Transactions based on the price determined within 90/100 through 110/100 of the value of assets calculated by the methods under the items of subparagraph 1 of Article 15;

4. Inevitable transactions following merger, dissolution, split-off, or merger after a split-off of entrusted management real estate investment companies;

5. Transactions made because it is inevitable to sell securities (excluding stocks) held because a request for purchase of stocks is made under Article 20-2 of the Act;

6. Transactions approved by the board of directors of entrusted management real estate investment companies and by a general meeting of shareholders through a special resolution under Article 434 of the Commercial Act.

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

Article 20-2(Requirements for human resources of asset management companies) #

(1) "Number prescribed by Presidential Decree" in Article 22-3(1)2 of the Act means 5 persons. <Amended on Jun. 22, 2021>

(2) "Computerized system prescribed by Presidential Decree, and other physical facilities" in Article 22-3(1)3 of the Act means any of the following facilities: <Added on Jun. 22, 2021>

1. Electronic computer systems and means of communications necessary for performing asset management services;

2. Adequate space for business and office equipment, including offices;

3. Security facilities that can safely protect electronic computer systems and other physical facilities;

4. Supplementary facilities necessary to maintain continuity of affairs in the case of power failure, fire, etc.

(3) Detailed standards for facilities under the subparagraphs of paragraph (2) shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport. <Added on Jun. 22, 2021>

[This Article Added on Jun. 17, 2013]

[Title Amended on Jun. 22, 2021]

Article 21(Exceptions to restrictions on concurrent operation of assets management companies) #

(1) "Where ... is prescribed by Presidential Decree" in Article 22-3(3)3 of the Act means any of the following cases: <Amended on Jun. 17, 2013; Jan. 16, 2014; Dec. 30, 2016; Feb. 17, 2021>

1. A trust business under the Financial Investment Services and Capital Markets Act; provided, this shall be limited to the trust business of property falling under Article 103(1)4 through 6 of the Financial Investment Services and Capital Markets Act and the incidental business thereof, and the trust business and incidental business thereof under paragraph (4) of that Article;

1-2. A collective investment business that manages collective investment properties of a real estate fund under subparagraph 2 of Article 229 of the Financial Investment Services and Capital Markets Act (including other affairs for which a person who has obtained authorization or registration for collective investment business of a real estate fund has obtained authorization or registration in accordance with that Act, but excluding trust businesses other than a trust business under subparagraph 1);

2. Asset management and operation of a corporation falling under Article 104-31(1) of the Act on Restriction on Special Cases concerning Taxation; provided, this shall apply only where an asset management company meets the requirements prescribed in Article 104-28(4)2 of the Enforcement Decree of that Act;

3. Affairs related to the acquisition, management, and disposal of real estate or real estate-related securities entrusted by another corporation; provided, the management of assets of a special purpose company under subparagraph 5 of Article 2 of the Asset-Backed Securitization Act shall not be concurrently conducted;

4. Advisory affairs on the acquisition, management, disposal, and development of real estate or real estate-related securities; provided, the affairs of a real estate investment advisory company shall be excluded herefrom;

5. Affairs of an institution entrusted with general clerical services under Article 19(3);

6. Affairs of lease management of real estate.

(2) Where an asset management company concurrently engages in the business of investing and operating entrusted assets and the affairs under paragraph (1)1, it shall separately operate the accounting, organization, and human resources of the entrusted affairs and the affairs under paragraph (1)1.

(3) No asset management company shall perform the affairs under the subparagraphs of paragraph (1) without performing the affairs entrusted by a real estate investment company.

(4) Deleted. <Jun. 22, 2021>

(5) A corporation that has obtained authorization for an asset management company from the Minister of Land, Infrastructure and Transport in accordance with Article 22-3 (3) 2 of the Act shall not concurrently operate the affairs under the subparagraphs of paragraph (1), other than the affairs entrusted by a real estate investment company; provided, this shall not apply where the affairs under the subparagraphs of paragraph (1) are permitted to the relevant corporation in accordance with other statutes or regulations. <Amended on Mar. 23, 2013>

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

Article 22(Authorization for asset management companies) #

(1) Deleted. <Aug. 13, 2024>

(2) Deleted. <Aug. 13, 2024>

(3) A person who intends to obtain authorization for the establishment of an asset management company in accordance with Article 22-3 of the Act shall submit an application for authorization for the establishment to the Minister of Land, Infrastructure and Transport, accompanied by the following documents: <Amended on Mar. 23, 2013; Jun. 22, 2021; Aug. 13, 2024>

1. Articles of incorporation;

2. Documents verifying the matters regarding the equity capital (referring to the amount calculated by subtracting the total amount of liabilities from the total amount of total assets; hereinafter the same shall apply);

3. Document stating the names or titles of shareholders and the number of shares owned (applicable only to a stock company);

4. Documents stating names and locations of the main office and branches;

5. A business plan (including estimated financial statements) and a statement of estimated revenue and expenditure for 3 business years from the commencement of business;

6. Resumes and career certificates of the representative, executive officers, and asset management specialists.

(4) Matters to be verified to determine whether to grant authorization in accordance with Article 22-3(2) of the Act shall be as follows: <Amended on Jun. 22, 2021; Feb. 13, 2024; Aug. 13, 2024>

1. Matters under Article 22-3(2)1 of the Act: The business plan shall meet the following requirements:

a. The types, methods, etc. of business shall be appropriate and sustainable;

b. Facilities necessary for conducting business shall be equipped;

c. The forecasted revenue and expenditure shall be reasonable and feasible;

d. Appropriate internal control criteria for investment risk management and accident prevention shall be in place;

2. Matters under Article 22-3(2)2 of the Act: The largest investor and a person who has invested at least 10/100 of the capital based on the total number of issued voting stocks shall meet the following requirements; provided, this shall not apply where the State or a local government has invested at least 50/100 of the capital:

a. He or she shall have sufficient investment capability;

b. His or her sources of funds shall be clear;

c. He or she shall meet the requirements prescribed in Appendix 3 with respect to financial status, social credibility, etc.;

3. Matters under Article 22-3(2)3 of the Act: An operation plan regarding its organization, business space, electronic computer systems, etc. shall be appropriate for managing proprietary assets and entrusted assets separately;

4. Matters under Article 22-3(2)4 of the Act: The management shall have the qualifications under the Act and relevant provisions and the expertise and capabilities necessary for the management of an asset management company.

(5) Deleted. <Aug. 13, 2024>

(6) The Minister of Land, Infrastructure and Transport shall determine and publicly notify the following matters regarding authorization for the establishment of an asset management company: <Amended on Feb. 21, 2020; Jun. 22, 2021; Aug. 13, 2024>

1. Forms of applications;

2. Procedures for application;

3. Details of matters to be verified when determining whether to grant authorization under paragraph (4);

4. Matters regarding affairs and operation of an asset management company.

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

Article 22-2(Maintenance of management soundness of asset management companies) #

(1) "Matters prescribed by Presidential Decree" in Article 22-3(9) of the Act means the following:

1. Matters regarding maintaining the appropriateness of capital;

2. Matters regarding risk management;

3. Matters necessary to maintain the appropriateness of operating internal control criteria and other management soundness.

(2) Detailed standards for matters to be observed under the subparagraphs of paragraph (1) shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport.

[This Article Added on Jun. 22, 2021]

Article 22-3(Assessment of actual status of business management and risks of asset management companies) #

(1) Where the Minister of Land, Infrastructure and Transport assesses the actual status of business management and risks in accordance with Article 22-3(10) of the Act, he or she shall comprehensively and systematically analyze and assess the assets and business status of the asset assessment company, and risk factors, etc. related to the investment and management of assets.

(2) Detailed standards and methods, etc. for assessment under paragraph (1) shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport.

[This Article Added on Jun. 22, 2021]

Article 22-4(Restrictions on acquisition of stocks by asset management companies) #

(1) "Ratio prescribed by Presidential Decree" in Article 22-4(1) of the Act means 30/100.

(2) Where the Minister of Land, Infrastructure and Transport issues an order to dispose of stocks in excess of the stockholding limit under Article 22-4(1) of the Act in accordance with Article 22-4(3) of the Act, he or she shall do so in writing, specifying the number of stocks subject to disposal, the deadline for disposal, and penalty for non-compliance of the disposal order.

[This Article Added on Feb. 13, 2024]

Article 22-5(Special cases regarding incorporation of asset management companies by self-managed real estate investment companies) #

"Matters prescribed by Presidential Decree" in subparagraph 3 of Article 22-5 of the Act means a resolution by the board of directors of a self-managed real estate investment company and a special resolution by a general meeting of shareholders under Article 434 of the Commercial Act.

[This Article Added on Feb. 13, 2024]

Article 23(Registration of real estate advisory companies) #

(1) A person who intends to obtain authorization for business of a real estate investment advisory company in accordance with Article 23(1) of the Act shall prepare an application for registration, stating the following matters, and submit it to the Minister of Land, Infrastructure and Transport: <Amended on Mar. 23, 2013>

1. Trade name and location of the company;

2. Matters regarding capital;

3. Matters regarding executive officers;

4. Methods of performing business.

(2) An application for registration under paragraph (1) shall be accompanied by the following documents; in such cases, the Minister of Land, Infrastructure and Transport shall verify the corporation registration certificate through administrative data matching under Article 36(1) of the Electronic Government Act: <Amended on Mar. 23, 2013>

1. Articles of incorporation;

2. Documents verifying the payment of capital;

3. Document stating the names or titles of shareholders and the number of shares owned;

4. Documents stating names and locations of the main office and branches;

5. A business plan;

6. Resumes and career certificates of asset management specialists;

7. Financial statements and documents attached thereto.

(3) Upon receipt of an application for registration in accordance with paragraph (1), the Minister of Land, Infrastructure and Transport shall grant registration, except in any of the following cases: <Added on Dec. 31, 2011; Mar. 23, 2013>

1. Where it fails to meet the requirements under the subparagraphs of Article 23(2) of the Act;

2. Where the affairs to be entrusted and conducted by a real estate investment company is in violation of Article 25;

3. Where it violates restrictions under the Act, this Decree, or any other statute or regulation.

(4) Where the Minister of Land, Infrastructure and Transport grants registration in accordance with paragraph (3), he or she shall issue a certificate of registration stating the following matters: <Amended on Dec. 31, 2011; Mar. 23, 2013>

1. The registration number;

2. The registration date;

3. Trade name and location of the company;

4. Name of its representative.

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

Article 24(Requirements for registration of real estate advisory companies) #

(1) "Amount prescribed by Presidential Decree" in Article 23(2)1 of the Act means 500 million won. <Amended on Nov. 25, 2025>

(2) "Number prescribed by Presidential Decree" in Article 23(2)2 of the Act means 3 persons.

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

Article 24-2(Requirements for temporary failure of registration of real estate advisory companies) #

"Cases prescribed by Presidential Decree" in the proviso of Article 23(3)2 of the Act means cases where it fails to meet the requirements for asset management specialists under Article 24(2) and 60 days have not elapsed since the occurrence of such ground.

[This Article Added on Jul. 15, 2010]

Article 24-3(Restrictions on trade names of persons other than real estate advisory companies) #

"Characters in a foreign language prescribed by Presidential Decree" in Article 23(4) of the Act means REITs advisory (including the Korean language characters) or other foreign language characters with similar meanings (including the Korean language characters).

[This Article Added on Feb. 13, 2024]

Article 25(affairs of real estate advisory companies) #

A real estate investment advisory company shall perform the following affairs entrusted by a real estate investment company: <Amended on Feb. 21, 2020>

1. Investigation, analysis, and provision of information necessary for decision-making by a general meeting of shareholders or a board of directors regarding investment and management of real estate assets;

2. Consulting, evaluation, etc. regarding investment and management of real estate assets under Article 21(2) of the Act.

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

Article 26(Restrictions on disposal of real estate) #

(1) "Period prescribed by Presidential Decree" in the main clause of Article 24(1) of the Act means the period classified as follows: <Amended on Oct. 28, 2014; Aug. 11, 2016>

1. Housing under subparagraph 1 of Article 2 of the Housing Act among real estate in the Republic of Korea: 1 year; provided, where a real estate investment company acquires unsold housing (referring to housing supplied by a project operator under Article 54 of the Housing Act in accordance with that Article and supplied on a first-come first-served basis because a contract for housing sale has not been concluded in a housing complex for which the contract date of occupants following the public announcement of recruitment of occupants has not expired) among the real estate in the Republic of Korea, the period shall be prescribed by the articles of incorporation;

2. Real estate, other than housing under subparagraph 1 of Article 2 of the Housing Act, among real estate located in the Republic of Korea: 1 year;

3. Real estate located overseas: The period prescribed by the articles of incorporation.

(2) "Ground prescribed by Presidential Decree" in Article 24(1)2 of the Act means where a real estate investment company conducts merger, dissolution, split-off, or merger after a split-off.

(3) "Case prescribed by Presidential Decree" in the proviso of Article 24(2) of the Act means any of the following:

1. Where it is inevitable to dispose of the relevant land because it is objectively proven that it is difficult to conduct a real estate development project due to a significant deterioration in business feasibility from the enactment, amendment, repeal, etc. of relevant laws and regulations after acquiring land to conduct the real estate development project;

2. Where a real estate investment company conducts merger, dissolution, split-off, or merger after a split-off.

(4) A due diligence report under Article 24(3) of the Act shall contain the following: <Amended on Mar. 23, 2013>

1. The current status, transaction price, and transaction costs of the relevant real estate;

2. Financial data related to the relevant real estate;

3. Factors affecting the profits of the relevant real estate;

4. Other matters necessary for determining whether to trade the relevant real estate, as prescribed by Decree of the Ministry of Land, Infrastructure and Transport.

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

Article 27(Criteria for calculation of assets) #

(1) In calculating assets included in real estate (including buildings under construction) constituting at least 70/100 of the total assets under the latter part of Article 25(1) of the Act and Article 49-2(1) of the Act, the following amounts shall be deemed included in such assets: <Amended on Dec. 31, 2011; Jun. 17, 2013; Jan. 16, 2014; Oct. 28, 2014; Oct. 30, 2018; Feb. 21, 2020; Feb. 17, 2021; May 9, 2022; Feb. 13, 2024; Dec. 24, 2024>

1. All amounts of investment in real estate development projects, excluding development projects of buildings under construction; in such cases, it shall include any of the following amounts of investment:

a. The amount of investment in the land and fixtures attached to the relevant building, such as opening adjacent roads and securing a site for a parking lot in relation to the building development project;

b. The amount of purchase of shares and bonds (limited to secured bonds of the relevant corporation) of a corporation established for real estate development and meeting the requirements under Article 104-31(1) of the Act on Restriction on Special Cases concerning Taxation;

c. The amount of purchase of stocks and bonds (limited to secured or guaranteed bonds of the relevant company) of an infrastructure facilities fund established in accordance with Article 41 of the Act on Public-Private Partnerships in Infrastructure;

2. All amounts invested to acquire rights to use real estate, such as ownership, superficies, rights to lease on a deposit basis, and leasehold interests;

3. All amounts invested to acquire the right to benefit of a real estate trust, the trust property of which is wholly attributed to the beneficiary when the trust expires;

4. All amounts invested to acquire at least 50/100 of the total number of equity securities issued by a corporation or an association (including a corporation or an association in the process of incorporation) of which is at least 80/100 of the total assets of which are comprised of real estate (including assets under subparagraphs 1 through 3 and 5 through 7; hereafter the same shall apply in this subparagraph); in such cases, the calculation of the ratio of real estate to the total assets shall be based on a statement of financial position of the corporation or the association as of the day immediately before the date of the meeting of the board of directors to purchase the relevant equity securities (in cases of a corporation or an association in the process of incorporation, referring to the point of time when the first quarter has elapsed from the incorporation) and where a corporation constitutes a parent company under Article 3(1) of the Enforcement Decree of the Act on External Audit of Stock Companies, the consolidated financial statements shall be used as the basis so as to include real estate held by subsidiaries;

4-2. All amounts invested to acquire 20/100 of the total number of equity securities issued by a corporation or an association (including a corporation or association in the process of incorporation) of which at least 80 of the total assets are comprised of real estate of each of the following items; in such cases, the latter part of subparagraph 4 shall apply mutatis mutandis to the calculation of the following asset ratio to the total assets:

a. The amount under subparagraph 1;

b. All amounts invested in the development project of buildings under construction;

5. All amounts invested to purchase infrastructure management and operation rights or stocks, bonds, or loan claims of a company holding infrastructure management and operation rights in accordance with Article 26 of the Act on Public-Private Partnerships in Infrastructure;

6. All amounts invested to purchase the right to manage the toll road or stocks, bonds, or loan bonds of a company holding the right to manage the toll road under Article 10 of the Toll Road Act;

7. All amounts invested to acquire equity securities, beneficiary certificates, or debt securities issued by other real estate investment companies or real estate funds (including any of the following institutions, etc.):

a. A foreign real estate investment company or a foreign real estate fund;

b. An institution related to real estate investment in a foreign country which performs the affairs of a company or an organization under item a;

8. All amounts loaned in accordance with Article 21(2)3 of the Act;

9. All amounts invested in land, public waters, or structures or facilities installed in a building;

10. Other amounts similar to those of subparagraphs 1 through 9, as determined publicly notified by the Minister of Land, Infrastructure and Transport.

(2) Cash under the former part of Article 25(1) of the Act shall include money deposited at financial institutions.

(3) The value of assets under Article 25(1) of the Act shall be calculated by the methods classified as follows: <Amended on Jan. 21, 2022; May 9, 2022; Dec. 24, 2024>

1. In the case of real estate: The method of calculation based on the acquisition value; provided, where 1 year has elapsed since the acquisition of real estate, the value calculated by an appraisal corporation, etc. in accordance with Article 16 may be used;

2. In the case of securities: The method of calculation by applying mutatis mutandis Article 260 of the Enforcement Decree of the Financial Investment Services and Capital Markets Act; in such cases, "base date of appraisal" shall be construed as "base date of calculation";

3. In the case of money deposited at financial institutions: The method of adding the principal (excluding the following amounts) and interest on the base date of calculation:

a. Rental deposit received after leasing private rental housing under the Special Act on Private Rental Housing and public rental housing under the Special Act on Public Housing;

b. Expenses for the admission to a residential welfare facility for senior citizens under Article 32(2) of the Welfare of Senior Citizens Act (limited to an amount equivalent to a deposit for admission) received from a person who is admitted thereto under subparagraph 1 of Article 31 of that Act;

4. In the case of other assets: The method of calculation based on the amount indicated in the statement of financial position.

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

Article 28(Entrustment of affairs of establishment of accounting standards) #

The Financial Services Commission shall entrust the Korea Accounting Institute (hereinafter referred to as the "Korea Accounting Institute") which is an incorporated association established with the permission of the Financial Services Commission in accordance with the Civil Act with the affairs regarding the establishment of accounting standards for real estate investment companies in accordance with Article 25-2(2) of the Act. <Amended on May 9, 2022>

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

Article 29(Credit rating) #

(1) "Real estate investment company prescribed by Presidential Decree" in Article 25-3(1) of the Act means a real estate investment company that has listed its stocks on the securities market in accordance with Article 20(1) of the Act, which does not fall under any of the following subparagraphs:

1. Where the ratio of investment in real estate development projects exceeds 30/100 of the total assets;

2. Where the total assets are less than 500 billion won;

3. Where it is deemed that the stable operation of assets is possible in consideration of the debt ratio, etc., as prescribed by Decree of the Ministry of Land, Infrastructure and Transport.

(2) A real estate investment company which falls under paragraph (1) shall undergo a credit rating in accordance with Article 25-3(1) of the Act after 1 year has elapsed from the date of the initial settlement of accounts (where a real estate investment company falls under paragraph (1) through a paid-in capital increase, etc., referring to the date on which the real estate investment company falls under paragraph (1)) after listing its stocks on the securities market.

(3) A self-managed real estate investment company or an asset management company of an entrusted management real estate investment company and a corporate restructuring real estate investment company shall disclose the results of credit rating in accordance with paragraph (2) (including a credit rating) through the information system on real estate investment companies under Article 49-6 (1) of the Act. <Amended on Dec. 24, 2024>

(4) Where a credit rating company under Article 25-3(1) of the Act has determined or changed the credit rating method, it shall submit the credit rating method to the following institutions: <Amended on Dec. 24, 2024>

1. The Ministry of Land, Infrastructure and Transport;

2. An exchange permitted in accordance with Article 373-2 of the Financial Investment Services and Capital Markets Act;

3. An association determined and publicly notified by the Minister of Land, Infrastructure and Transport among the organizations of self-managed real estate investment companies, asset management companies, or real estate advisory companies under Article 49-4 of the Act (hereinafter referred to as the "Association").

(5) Where credit rating is required in accordance with paragraph (2), the timing, detailed criteria, etc. for such credit rating shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport. <Added on Jun. 22, 2021>

[This Article Added on Feb. 21, 2020]

Article 30(Preparation of business plans) #

A business plan under Article 26(3) of the Act shall include the following matters:

1. Matters regarding a business plan including land subject to development, development methods, business implementation schedules, construction plans, etc.;

2. Matters regarding procurement, investment, and recovery of funds;

3. Matters regarding estimated profit and loss;

4. Matters regarding business risks;

5. Matters regarding outsourcing services, including performance of construction works;

6. Other matters necessary for the protection of investors.

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

Article 30-2(Report on incorporation of project real estate investment companies) #

(1) Where a project real estate investment company intends to file a report on incorporation in accordance with Article 26-4(1) of the Act, it shall include the following matters in the report on incorporation determined and publicly notified by the Minister of Land, Infrastructure and Transport and submit it to the Minister of Land, Infrastructure and Transport; provided, matters referred to in subparagraphs 6 and 7 shall be submitted only when the project real estate investment company corresponds to an entrusted management real estate investment company or a corporate restructuring real estate investment company:

1. Trade name and location of the main office;

2. Matters regarding registration for incorporation of a corporation;

3. Matters regarding capital;

4. Matters regarding incorporators and executive officers;

5. Matters regarding a business outline including real estate subject to development, development methods, business implementation schedules, and construction plans;

6. Matters regarding a contract for entrustment concluded with an institution entrusted with general clerical services;

7. Matters regarding a contract for entrustment concluded with an asset management company;

8. Matters regarding a contract for entrustment concluded with an asset custodian.

(2) A project real estate investment company that has filed a report on incorporation under Article 26-4(1) of the Act shall obtain authorization for business under Article 9 of the Act or registration under Article 9-2 within 18 months from the date on which the approval for use, completion inspection, etc. of the real estate development project is received in accordance with Article 26-4(4) of the Act; provided, where the Minister of Land, Infrastructure and Transport deems it necessary for the public interest or investor protection, the deadline for authorization for business or registration under the main clause may be extended within a period not exceeding 6 months.

(3) A project real estate investment company, when issuing new stocks to persons other than shareholders in accordance with Article 26-4(5) of the Act, shall do so by not making a public offering of stocks, and the total number of shareholders after issuing the new stocks shall not exceed the number prescribed in Article 6(3) of the Enforcement Decree of the Financial Investment Services and Capital Markets Act.

(4) A project real estate investment company or asset management company under Article 26-4(7) of the Act shall prepare a business investment report at each of the following times:

1. The last day of the accounting period (referring to the date of liquidation or merger, in the case of a real estate investment company extinguished upon dissolution or merger);

2. The date every 3 months end from the commencement date of the business year (excluding the last day of the accounting period).

(5) The project investment report under paragraph (4) shall be reported to the Minister of Land, Infrastructure and Transport within the following period from the date of preparation under each subparagraph of that paragraph:

1. A project investment report prepared at the last day of the accounting period (excluding the case of a real estate investment company liquidated upon dissolution or merger) under paragraph (4)1: Within 90 days;

2. A project investment report prepared at the date of liquidation or merger of a real estate investment company liquidated upon dissolution or merger under paragraph (4)1: Within 45 days;

3. A project investment report prepared on the date under paragraph (4)2: Within 45 days.

(6) "Where any cause or event prescribed by Presidential Decree occurs" in Article 26-4(7) of the Act means cases falling under Article 40-2(2)1 and 2.

(7) Except as provided in paragraphs (1) through (6), matters necessary for filing a report on incorporation of a project real estate investment company and reporting thereon shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport.

[This Article Added on Nov. 25, 2025]

Article 31(Investment in securities) #

(1) "Tourist accommodation business in accordance with the Tourism Promotion Act or other businesses prescribed by Presidential Decree" in Article 27(1)4-2 of the Act means any of the following: <Added on Jul. 19, 2016; Feb. 13, 2024>

1. Tourist accommodation business under Article 3(1)2 of the Tourism Promotion Act;

2. Lodging business under Article 2(1)2 of the Public Health Control Act;

3. Housing management services under the Multi-Family Housing Management Act;

4. Housing rental management business under subparagraph 10 of Article 2 of the Special Act on Private Rental Housing;

5. Logistics terminal business under subparagraph 3 of Article 2 of the Act on the Development and Management of Logistics Facilities and logistics warehousing business under subparagraph 5-3 of that Article;

6. Business for superstores under subparagraph 3 of Article 2 of the Distribution Industry Development Act, quasi-superstores under subparagraph 4 of that Article, and joint collection and delivery centers under subparagraph 16 of that Article;

7. Sports facility business under subparagraph 2 of Article 2 of the Installation and Utilization of Sports Facilities Act;

8. Business entrusted with the operation of welfare house for senior citizens under Article 33-2(6) of the Welfare of Senior Citizens Act;

9. Other businesses prescribed by Decree of the Ministry of Land, Infrastructure and Transport, which are similar to those under subparagraphs 1 through 8.

(2) "Where ... is prescribed by Presidential Decree" in Article 27(1)5 of the Act means any of the following cases: <Amended on Jan. 16, 2014; Oct. 28, 2014; Jul. 19, 2016; Feb. 13, 2024>

1. Where a real estate investment company acquires stocks of a public-private partnership corporation under Article 14 of the Act on Public-Private Partnerships in Infrastructure;

2. Where a real estate investment company acquires stocks issued by other real estate investment companies or real estate funds (including any of the following institutions, etc.):

a. A foreign real estate investment company or a foreign real estate fund;

b. An institution related to real estate investment in a foreign country which performs the affairs of a company or an organization under item a;

3. Where a real estate investment company acquires stocks to establish or acquire a facility management company to entrust the management or operation of general facilities of a real estate investment company;

4. Where a real estate investment company acquires stocks in excess of 50/100 of the total number of issued stocks of a corporation of which at least 80 of the total assets are comprised of real estate (including assets under Article 27(1)1 through 3 and 5 through 7) in accordance with Article 27(1)4;

4-2. Where a real estate investment company acquires stocks in excess of 20/100 of the total number of outstanding stocks of a corporation under Article 27(1)4-2;

5. Where a real estate investment company acquires stocks of a company holding infrastructure management and operation rights under Article 26 of the Act on Public-Private Partnerships in Infrastructure;

6. Where a real estate investment company acquires stocks of an infrastructure investment fund under Article 41 of the Act on Public-Private Partnerships in Infrastructure;

7. Where a real estate investment company acquires stocks of a company holding a management authority over toll roads under Article 10 of the Toll Road Act.

(3) "Securities prescribed by Presidential Decree" in the main clause of Article 27(3) of the Act means any of the following securities: <Amended on Dec. 31, 2011; Jan. 16, 2014; Oct. 28, 2014; Jul. 19, 2016; Feb. 17, 2021; Dec. 28, 2021; May 16, 2023; Feb. 13, 2024>

1. Bonds issued by public institutions under Article 4 of the Act on the Management of Public Institutions;

2. Bonds issued by financial institutions under Article 33(1)1 through 10;

3. Bonds guaranteed by financial institutions under Article 33(1)1 through 10 (limited to bonds issued through public offering under Article 9(7) of the Financial Investment Services and Capital Markets Act);

4. Mortgage-backed bonds and mortgage-backed securities issued in accordance with the Korea Housing Finance Corporation Act;

5. Securities (limited to those acquired by a real estate investment company in accordance with the articles of incorporation stating the investment in securities issued for the purpose of raising funds for corporate merger or acquisition) issued by a company or another company (hereafter in this Article referred to as "merged or acquired company, etc.") for the purpose of raising funds for merger with another company or incorporation into an affiliated company under subparagraph 12 of Article 2 of the Monopoly Regulation and Fair Trade Act (hereafter in this Article referred to as "corporate merger or acquisition");

6. Bonds issued in accordance with Article 31 of the Asset-Backed Securitization Act on the basis of the assets of the merged or acquired company, etc. for the purpose of raising funds for corporate merger or acquisition;

7. Bonds or debt certificates issued by a securities finance company under Article 324 of the Financial Investment Services and Capital Markets Act;

8. Equity securities where such equity securities are acquired in excess of 50/100 of the total number of issued equity securities of a corporation or an association of which at least 80 of the total assets are comprised of real estate (including assets under Article 27(1)1 through 3 and 5 through 7) in accordance with Article 27(1)4;

8-2. Equity securities where such equity securities are acquired in excess of 20/100 of the total number of equity securities issued by a corporation or an association under Article 27(1)4-2;

9. Stocks and bonds where such stocks and bonds of a corporation (limited to secured bonds of the relevant corporation) established for real estate development and meeting the requirements under Article 104-31(1) of the Act on Restriction on Special Cases concerning Taxation are acquired in accordance with Article 27(1)1b;

10. Stocks and bonds where such stocks and bonds of an infrastructure facilities fund (limited to secured or guaranteed bonds of the relevant company) under Article 41 of the Act on Public-Private Partnerships in Infrastructure;

11. Stocks and bonds where such stocks and bonds of a company holding infrastructure management and operation rights under Article 26 of the Act on Public-Private Partnerships in Infrastructure are acquired;

12. Stocks and bonds where such stocks and bonds of a company holding a management authority over toll roads under Article 10 of the Toll Road Act are acquired;

13. Equity securities, beneficiary certificates, or debt securities issued by other real estate investment companies or real estate funds (including any of the following institutions, etc.):

a. A foreign real estate investment company or a foreign real estate fund;

b. An institution related to real estate investment in a foreign country which performs the affairs of a company or an organization under item a;

14. Beneficiary certificates of real estate trust, the trust property of which is wholly attributed to the beneficiary when the trust expires.

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

Article 32(Scope of excess dividends) #

(1) Where an entrusted management real estate investment company intends to distribute excess dividends in accordance with Article 28(3) of the Act, it shall determine necessary matters, including the procedures, timing, etc. for distribution of excess dividends, in the articles of incorporation in advance.

(2) Excess dividends shall be distributed within the scope of the depreciation cost for the relevant year, but losses carried over from the preceding year due to excess dividends shall not be included in the calculation of dividends available for the current year.

(3) Excess dividends shall be distributed in cash.

(4) "Ratio prescribed by Presidential Decree" in Article 28(4) of the Act means 10/100. <Added on Jun. 17, 2013>

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

[Title Amended on Jun. 17, 2013]

Article 33(External borrowings) #

(1) Where a real estate investment company intends to borrow funds in accordance with Article 29(1) of the Act, it shall borrow funds from the following financial institutions, etc.; provided, where otherwise prescribed by the articles of incorporation of the real estate investment company or the special resolution of the general meeting of shareholders under Article 434 of the Commercial Act, the real estate investment company may borrow funds accordingly: <Amended on Jan. 6, 2012; Jun. 30, 2015; Oct. 25, 2016; Feb. 21, 2020; May 9, 2020; Feb. 13, 2024>

1. A bank established after obtaining authorization under the Banking Act;

2. The Bank of Korea under the Bank of Korea Act;

3. The Industrial Bank of Korea under the Industrial Bank of Korea Act;

4. The Export-Import Bank of Korea under the Export-Import Bank of Korea Act;

5. Deleted; <Dec. 30, 2014>

6. A mutual savings bank under the Mutual Savings Banks Act;

7. The NongHyup Bank under the Agricultural Cooperatives Act;

8. The Suhyup Bank under the Fisheries Cooperatives Act;

9. An investment trader, investment broker, trust business entity, merchant bank, and securities finance company under the Financial Investment Services and Capital Markets Act;

10. Financial holding companies under the Financial Holding Companies Act;

11. Insurance companies under the Insurance Business Act;

12. The Korea Credit Guarantee Fund under the Korea Credit Guarantee Fund Act;

13. The Housing and Urban Fund under the Housing and Urban Fund Act;

14. The Public Official Pension Fund under the Public Officials Pension Act;

15. The Military Pension Fund under the Military Pension Act;

16. The pension fund for private school teachers and staff under the Pension for Private School Teachers and Staff Act;

17. The National Pension Fund under the National Pension Act;

18. The Korean Teachers' Credit Union under the Korean Teachers' Credit Union Act;

19. The Public Officials Benefit Association under the Public Officials Benefit Association Act;

20. The Military Mutual Aid Association under the Military Personnel Mutual Aid Association Act;

21. Special purpose companies under the Asset-Backed Securitization Act;

22. The Police Mutual Aid Association under the Police Mutual Aid Association Act;

23. The Korea Local Finance Association under the Korea Local Finance Association Act;

23-2. The Correctional Mutual Aid Association under the Correctional Mutual Aid Association Act;

23-3. The Korea Scientists and Engineers Mutual-Aid Association under the Korea Scientists and Engineers Mutual-Aid Association Act;

23-4. The Korea Fire Officials Credit Union under the Korea Fire Officials Credit Union Act;

24. Mutual aid associations under Article 54 of the Framework Act on the Construction Industry;

25. Specialized credit financial companies under the Specialized Credit Finance Business Act;

26. Collective investment schemes under the Financial Investment Services and Capital Markets Act;

27. Real estate investment companies;

28. The Korean Federation of Community Credit Cooperatives under the Community Credit Cooperatives Act;

29. The National Credit Union Federation of Korea under the Credit Unions Act;

30. The Korea Federation of Small and Medium Business under the Small and Medium Enterprise Cooperatives Act;

31. Foreign financial institutions, etc. equivalent to those under subparagraphs 1 through 4, 6 through 23, 23-2 through 23-4, and 24 through 30.

(2) Where a real estate investment company acquires real estate and assumes debts collateralized by the relevant real estate, it shall be deemed a borrowing under paragraph (1).

(3) Where a real estate investment company issues bonds in accordance with Article 29(1) of the Act, it shall comply with the articles of incorporation of the real estate investment company or a special resolution of the general meeting of shareholders under Article 434 of the Commercial Act. <Amended on Aug. 27, 2013; Oct. 28, 2014>

(4) Deleted. <Feb. 13, 2024>

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

Article 34(Restrictions on transactions by real estate investment companies and exceptions thereto) #

(1) "Person prescribed by Presidential Decree" in Article 30(1)4 of the Act means a real estate fund (referring to a real estate fund under subparagraph 2 of Article 229 of the Financial Investment Services and Capital Markets Act) which owns collective investment property under management by an asset management company under Article 30(1)3 of the Act in relation to the collective investment business concurrently operated in accordance with Article 22-3(3)3 of the Act and Article 21(1)1-2 of this Decree. <Added on Feb. 13, 2024>

(2) "Transactions ... prescribed by Presidential Decree" in Article 30(2)3 of the Act means the following transactions: <Amended on Jul. 19, 2016; Sep. 19, 2017; Feb. 13, 2024>

1. Transactions, other than real estate sales transactions, approved by the board of directors of and by a general meeting of shareholders through a special resolution under Article 434 of the Commercial Act;

2. Transactions of leasing real estate held by a real estate investment company at a price higher than the price determined by the board of directors; provided, transactions with persons falling under Article 30(1)1 of the Act shall be excluded;

3. Inevitable transactions following merger, dissolution, split-off, or merger after a split-off of a real estate investment company;

4. Deleted. <Jul. 19, 2016>

(3) "Institutions or organizations prescribed by Presidential Decree" in the former part of Article 30(3) of the Act means the Korea Association of Property Appraisers under Article 33 of the Act on Appraisal and Certified Appraisers. <Added on Sep. 19, 2017; Feb. 13, 2024>

(4) Article 16 shall apply mutatis mutandis to the methods, procedures, etc. for appraisal under Article 30(3) of the Act. In such cases, "in-kind contribution" shall be construed as "real estate sales transaction" and "in-kind contributor" as "party to transaction". <Added on Sep. 19, 2017; Feb. 13, 2024>

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

[Title Amended on Feb. 13, 2024]

Article 35 #

Deleted. <Jul. 15, 2010>

Article 36(Code of conduct for executive officers and employees) #

"Acts ... prescribed by Presidential Decree" in subparagraph 3 of Article 33 of the Act means any of the following:

1. Acquiring or disposing of any real estate whose registration to preserve ownership or registration of transfer of ownership has not been completed for tax evasion, or any real estate for which alteration of rights, such as resale, are restricted in accordance with relevant statutes or regulations;

2. Managing assets in or der to artificially manipulate the market prices of real estate or securities in possession.

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

Article 37(Entrustment of asset custody) #

(1) A real estate investment company shall keep real estate, securities, and cash held in accordance with Article 35(1) of the Act in accordance with the following classifications: <Amended on Jun. 17, 2013; Mar. 24, 2014; Jun. 30, 2015; Feb. 17, 2022>

1. Real estate (including the right to use real estate for which trusts can be undertaken in accordance with Article 103 of the Financial Investment Services and Capital Markets Act, such as superficies and right to lease on a deposit basis, but not including the right to receive compensation with land under Article 26-3(1) of the Act): Upon acquisition of the real estate, the real estate shall be trusted in the name of the company to any of the following persons, along with the registration of transfer:

a. A trust business entity or a financial institution concurrently engaged in the trust business under the Financial Investment Services and Capital Markets Act;

b. The Korea Land and Housing Corporation under the Korea Land and Housing Corporation Act;

c. The Korea Asset Management Corporation under the Act on the Establishment of Korea Asset Management Corporation;

d. The Korea Housing and Urban Guarantee Corporation under the Housing and Urban Fund Act;

e. An institution established in accordance with foreign statutes and engaged in the trust business, which is recognized by the Minister of Land, Infrastructure and Transport;

2. Securities and cash: A trust business entity or a financial institution concurrently engaged in the trust business under the Financial Investment Services and Capital Markets Act shall be entrusted with custody over securities and cash.

(2) A trust of real estate under paragraph (1)1 shall be conducted by concluding an asset custody contract. In such cases, if a real estate investment company defaults on the obligations of a financial institution, etc. under the subparagraphs of Article 33(1), the trustee may conclude a contract including a contract stating that the proceeds from sale of the relevant asset shall be preferentially distributed to the financial institution through a public auction, etc. <Added on Feb. 21, 2020>

(3) Where the Housing and Urban Fund under Article 3 of the Housing and Urban Fund Act or a public corporation falling under any of paragraph (1)1b through d solely or jointly owns all of the issued stocks of an entrusted management real estate investment company, a contract to entrust the investment and management of the relevant assets to the public corporation falling under any of paragraph (1)1b through d shall be deemed to have been concluded an asset custody contract under the former part of paragraph (2). <Added on Feb. 21, 2020>

(4) An asset custodian under paragraph (1)2 shall, without delay, deposit securities designated as securities, etc. to be deposited under Article 308 of the Financial Investment Services and Capital Markets Act, among the securities entrusted for custody from a real estate investment company in accordance with Article 35(3) of the Act in the Korea Securities Depository. <Amended on Feb. 21, 2020>

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

Article 38(Methods of concluding asset custody contracts) #

(1) An asset custody contract concluded by a real estate investment company with an asset custodian to entrust the custody of assets under Article 35(1) of the Act shall include the following matters:

1. Trade name of asset custodians;

2. Matters regarding the scope of affairs, responsibilities, and authority of asset custodians;

3. Matters regarding methods for asset custody;

4. Methods for calculating fees charged by an asset custodian and timing for payment thereof;

5. Matters regarding termination or cancellation of asset custody contracts;

6. Where the period for custody of assets has been determined, the period;

7. In the case of a trust under Article 37(1)2, matters under the subparagraphs of Article 109 of the Financial Investment Services and Capital Markets Act.

(2) When an asset custodian has concluded an asset custody contract, it shall receive the following documents, etc. from a real estate investment company and keep them in custody or deposit them; in such cases, where it is possible to verify the submitted documents through administrative data matching under Article 36(1) of the Electronic Government Act, the asset custodian shall substitute the submitted documents with such verification, and where the real estate investment company does not consent to the verification under subparagraph 3, it shall require the real estate investment company to submit a copy thereof: <Amended on Nov. 2, 2010>

1. A certificate of entries in the relevant corporate register;

2. Articles of incorporation;

3. A copy of a business registration certificate;

4. A certificate of corporate seal impression of the representative director;

5. A transaction seal impression registration application;

6. Minutes of the board of directors;

7. Paper-based securities;

8. Other documents necessary for registration of trusts.

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

Article 39(Obligations of asset custodians) #

Where an executive officer or employee of an asset custodian establishes basic procedures and criteria to comply with when performing the affairs of asset custody in accordance with Article 36(2) of the Act, all of the following matters shall be included therein:

1. A statement to the effect that an executive officer or employee shall not provide any information or data he or she has learned in connection with affairs of asset custody to a third party or use such information or data for any purpose other than business purposes without obtaining approval from the relevant real estate investment company;

2. A statement to the effect that the executive officers and employees of an asset custodian shall not use the entrusted assets held in custody for the proprietary property of the asset custodian;

3. A statement to the effect that an asset custodian shall keep records related to the affairs of asset custody and keep accounting books to clearly process the administrative affairs related to asset custody and the calculation thereof.

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

Article 40(Investment report) #

(1) A self-managed real estate investment company or an asset management company of an entrusted management real estate investment company and a corporate restructuring real estate investment company shall prepare investment reports at the following times in accordance with Article 37(1) of the Act: <Amended on Feb. 13, 2024>

1. The last day of the accounting period (referring to the date of liquidation or merger, in the case of a real estate investment company extinguished upon dissolution or merger);

2. The date every 3 months end from the commencement date of the business year (excluding the last day of the accounting period).

(2) "Time limit prescribed by Presidential Decree" in Article 37(1) of the Act means within the period prescribed by the following classifications from the date of preparation under paragraph (1): <Amended on Feb. 13, 2024>

1. An investment report prepared at the end of the accounting period (excluding the date of liquidation or merger) under paragraph (1)1: Within 90 days;

2. An investment report prepared on the date of liquidation or merger under paragraph (1)1: Within 45 days;

3. An investment report prepared in accordance with paragraph (1)2: Within 45 days.

(3) "Matters prescribed by Presidential Decree" in Article 37(2) of the Act means the following; provided, in cases falling under subparagraphs 5, 6, 10, 11, and 11-2, they shall be prepared only where the relevant matters exist: <Amended on Feb. 21, 2020; Aug. 13, 2024; Dec. 24, 2024>

1. Current status of real estate investment companies;

2. Current status of the investment and management of assets and the composition and change of assets under Articles 21 and 25 of the Act;

3. Matters regarding revenues and expenses;

4. Current status of real estate owned and major lease status;

4-2. Where a real estate investment company has received a credit rating in accordance with Article 25-3(1) of the Act, matters regarding its credit rating;

5. Current status of the investment in real estate development projects under Article 26 of the Act;

6. Current status of the acquisition of securities falling under each subparagraph of Article 27(1) of the Act;

7. Matters regarding the composition of shareholders, major stockholder status, and stock price fluctuations;

8. Matters regarding borrowings;

9. Financial statements;

10. Progress of important litigations related to the operation of real estate investment companies;

11. Current status of transactions falling under the subparagraphs of Article 30(2) of the Act;

11-2. Current status of the appointment or dismissal of compliance officers of self-managed real estate investment companies and asset management companies under Article 47(2) of the Act;

12. Other matters related to asset management, as determined and publicly notified by the Minister of Land, Infrastructure and Transport.

(4) Except as provided in paragraphs (1) through (3), matters necessary for the preparation, etc. of investment reports shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport. <Amended on Nov. 25, 2025>

[This Article Wholly Amended on Nov. 13, 2018]

Article 40-2(Disclosure of information) #

(1) The work experience of changed asset management specialists to be disclosed in accordance with Article 37(3)1 of the Act shall be limited to that within the last 3 years from the date of change. <Amended on Nov. 13, 2018>

(2) "Upon occurrence of financial accidents or non-performing assets as prescribed by Presidential Decree" in Article 37(3)2 of the Act means any of the following:

1. Where a financial accident or non-performing asset, etc. occurs in excess of the amount prescribed by Decree of the Ministry of Land, Infrastructure and Transport; provided, cases prescribed by Decree of the Ministry of Land, Infrastructure and Transport as unlikely to undermine the protection of investors and sound trading order shall be excluded herefrom;

2. Where non-performing assets determined and publicly notified by the Minister of Land, Infrastructure and Transport occur upon an issuer's bankruptcy, application for commencing rehabilitation procedures under the Debtor Rehabilitation and Bankruptcy Act, or any other ground;

3. Cases similar to those prescribed in subparagraph 1 or 2, which are prescribed by Decree of the Ministry of Land, Infrastructure and Transport.

(3) "Matters prescribed by Presidential Decree" in Article 37(3)4 of the Act means any of the following:

1. The modification of an investment prospectus under Article 17(2) of the Act; provided, any of the following cases shall be excluded:

a. Where the investment prospectus is modified in accordance with the amendment of the Act or this Decree or an order issued by the Minister of Land, Infrastructure and Transport under the relevant statutes or regulations;

b. Where the investment prospectus is modified by a resolution adopted at a general meeting of shareholders;

c. Where minor matters are modified, such as modification of simple wording in the investment prospectus;

2. Matters having a significant influence on investors' investment decisions, as prescribed by Decree of the Ministry of Land, Infrastructure and Transport.

(4) Notifications under the main clause of Article 37(4)2 of the Act may be made through a sales company, an institution entrusted with general clerical services, or a transfer agency under Article 365 of the Financial Investment Services and Capital Markets Act. <Added on Nov. 13, 2018>

(5) "Cases prescribed by Presidential Decree" in the proviso of Article 37(4)2 of the Act means any of the following: <Added on Nov. 13, 2018>

1. Where the real estate investment company is a real estate investment company listed in accordance with Article 20(1) of the Act;

2. Where a shareholder indicates his or her intention not to receive notification under the main clause of Article 37(4)2 of the Act in writing or by telephone, facsimile, electronic mail, or other similar electronic communications;

3. Where the articles of incorporation of a real estate investment company prescribe that no investment report shall be notified to a shareholder whose investment amount does not exceed 1 million won;

4. Where there is no e-mail address of the shareholder and the address of the residence is unknown.

(6) Detailed standards for the forms, method of preparation thereof, matters to be stated, etc. in relation to disclosure under Article 37(3) of the Act shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport. <Amended on Nov. 13, 2018>

[This Article Added on Jul. 19, 2016]

Article 41(Supervision and investigation) #

(1) The type of inspections under Article 39(1) of the Act shall be as follows:

1. Comprehensive inspection: An inspection conducted in accordance with a comprehensive inspection plan formulated by the Minister of Land, Infrastructure and Transport each year with respect to the affairs, property, etc. of a real estate investment company or an asset management company, which includes the details of institutions subject to inspection, methods of inspection, period of inspection, etc.;

2. Special inspection: An inspection conducted by the Minister of Land, Infrastructure and Transport, where deemed necessary to inspect the affairs, property, etc. of a real estate investment company, etc. to protect public interests and shareholders of a real estate investment company and to promote sound management of a real estate investment company, etc. under Article 39 (1) of the Act (hereinafter referred to as "real estate investment company, etc.").

(2) In principle, comprehensive inspections or special inspections under paragraph (1) shall be conducted by visiting a real estate investment company, etc. subject to inspection to conduct an on-site inspection, but where the purpose of inspection can be achieved through the data submitted by the real estate investment company, etc. subject to inspection, a written inspection may be conducted.

(3) Where the Minister of Land, Infrastructure and Transport intends to conduct a comprehensive inspection or special inspection, he or she shall formulate an inspection implementation plan and notify the real estate investment company, etc. subject to inspection 3 days before the commencement of the inspection; provided, this shall not apply where the Minister of Land, Infrastructure and Transport deems it impracticable to achieve the purpose of inspection over concerns about falsification or destruction, etc. of documents when the inspection implementation plan is notified in advance.

(4) "Matters prescribed by Presidential Decree" in Article 39(2)3 of the Act means any of the following:

1. Warning or caution to the relevant company;

2. Request for correction or reimbursement, such as order to dispose of assets in possession.

(5) Except as provided in paragraphs (1) through (4), matters necessary for inspecting a real estate investment company, etc. shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport.

[This Article Wholly Amended on Jan. 16, 2014]

Article 42(Authorization for and registration of modification of real estate investment companies) #

(1) A person who intends to obtain authorization or file for registration in accordance with Article 40(1) of the Act shall submit an application stating the following matters in the application: <Amended on Jul. 19, 2016>

1. Trade name;

2. Location of the main office;

3. Details of and grounds for application for authorization or registration.

(2) An application under paragraph (1) shall be accompanied by the following documents: <Amended on Jul. 19, 2016>

1. Where the articles of incorporation are to be amended, the articles of incorporation before and after the amendment thereof;

2. Where a resolution at a general meeting of shareholders is required, the minutes of the general meeting of shareholders;

3. Where a resolution of the board of directors is required, the minutes of meetings of the board of directors;

4. Deleted. <Oct. 23, 2015>

(3) Except as provided in paragraphs (1) and (2), detailed matters necessary for authorization or registration under Article 40(1) of the Act shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport. <Added on Jul. 19, 2016>

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

[Title Amended on Jun. 22, 2021]

Article 42-2(Grounds for authorization for, and registration of, modification of real estate investment companies) #

(1) "Matters prescribed by Presidential Decree" in Article 40(1)1 of the Act means matters referred to in Article 8(1)8 and 10-2 of the Act. <Amended on Nov. 25, 2025>

(2) "Reasons prescribed by Presidential Decree, including auction and public auction" in Article 40(1)5 of the Act means any of the following: <Amended on Jul. 19, 2016; Feb. 21, 2020; Feb. 13, 2024>

1. Where real estate is acquired through auction, public sale, etc., or the status of a business entity is determined through public offering, etc.;

2. Where the business expenses, business scale, funding plan, or assets under Article 21(1) of the Act in the business plan (including the modified business plan) are modified within the following limits:

a. In the case of authorization: Less than 30/100;

b. In the case of registration: Less than 50/100;

3. Where the transfer date of the right to use real estate, such as ownership or right to lease of real estate (hereafter referred to as "right to use real estate" in this subparagraph) is changed from the scheduled transfer date in the business plan; provided, in the case of a real estate investment company that has obtained authorization, it shall be limited to cases where the transfer of the right to use real estate occurs within 90 days before or after the scheduled transfer date in the business plan (180 days where the right to use real estate arises due to the construction of a building);

4. Where the authorized or registered matters are modified as a result of the enactment, amendment, or repeal of the relevant statutes or regulations.

[This Article Added on Oct. 23, 2015]

[Title Amended on Nov. 25, 2025]

Article 42-3(Reporting on modification of self-managed real estate investment companies) #

(1) A person who intends to file a report in accordance with Article 40(2) of the Act shall submit a report stating the following matters to the Minister of Land, Infrastructure and Transport:

1. Trade name;

2. Location of the main office;

3. Matters regarding capital;

4. Matters regarding executive officers;

5. Matters regarding major investment targets and management methods.

(2) A report under paragraph (1) shall be accompanied by the following documents:

1. Documents related to approval by the board of directors and a general meeting of shareholders in relation to modified projects;

2. Matters regarding assets, such as capital and liabilities;

3. Matters regarding management, such as operating profit for the past 2 years;

4. Current status of major shareholders and asset management specialists;

5. A modified business plan and a statement of estimated revenue and expenditure;

6. Where a public offering of stocks is to be made in accordance with Article 14-8(2) of the Act, a plan for such public offering of stocks and an underwriting agreement concluded with an underwriter who is to acquire the remaining stocks after the public offering of such stocks;

7. A draft investment prospectus under Article 17(2) of the Act.

(3) A person who has filed a report under paragraph (1) shall not change the titles, such as ownership or leasehold, of the relevant real estate before the report is accepted.

(4) "Standards prescribed by Presidential Decree" in Article 40(2)1 of the Act means 30 billion won.

[This Article Added on Oct. 23, 2015]

Article 42-4(Authorization for modification of asset management companies) #

(1) "Authorized matters prescribed by Presidential Decree, such as a plan for facilities and the composition of shareholders" in Article 40(4) of the Act means the following:

1. Matters regarding facility plans, including electronic computer systems and physical facilities;

2. Matters regarding composition of major shareholders and the largest shareholder;

3. Matters regarding the scope of business, such as concurrent business;

4. Where the identity is changed from the time of authorization, matters which have a significant impact on the protection of investors or the soundness of business management, as determined and publicly notified by the Minister of Land, Infrastructure and Transport.

(2) A person who intends to obtain authorization for modification in accordance with Article 40(4) of the Act shall submit an application for authorization for modification stating the following matters to the Minister of Land, Infrastructure and Transport:

1. Trade name;

2. Location of the main office;

3. Representative thereof;

4. Details of modification of matters under the subparagraphs of paragraph (1);

5. Other matters necessary for authorization for modification, as determined and publicly notified by the Minister of Land, Infrastructure and Transport.

(3) An application under paragraph (2) shall be accompanied by the following documents:

1. Minutes of a general meeting of shareholders or the board of directors, where the matters to be modified require a resolution of the general meeting of shareholders or the board of directors;

2. Documents verifying the modified matters;

3. Other documents necessary for determining whether to grant authorization for modification, as determined and publicly notified by the Minister of Land, Infrastructure and Transport.

(4) The form of an application, etc. for authorization for modification of an asset management company under paragraphs (2) and (3), and the detailed standards and procedures for authorization for modification shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport.

[This Article Added on Jun. 22, 2021]

Article 43(Matters to be reported) #

(1) A person required to file a report in accordance with Article 41(1) and (2) of the Act shall submit the report, accompanied by relevant documents verifying the reported matters (in the case of dissolution, including a plan to implement administrative affairs for liquidation). <Amended on Jun. 22, 2021>

(2) "Matters ... prescribed by Presidential Decree" in Article 41(1)4 of the Act means any of the following cases: <Amended on Oct. 23, 2015; Feb. 21, 2020; Feb. 13, 2024; Dec. 24, 2024>

1. Where it intends to modify the matters prescribed in the subparagraphs (excluding subparagraph 10-2) of Article 8(1) of the Act;

1-2. Where it has secured its capital within the period for preparing the minimum capital as classified in the subparagraphs of Article 10 of the Act;

1-3. Where it has provided at least 30/100 of the total number of stocks issued in accordance with Article 14-8(2) of the Act for public offering, the plan and results thereof;

1-4. Where it has been merged or dissolved in accordance with Articles 43 and 44 of the Act, the plan and results thereof;

2. Where it has been punished in accordance with the provisions of Articles 50 through 53 of the Act;

3. Where the relevant real estate investment company becomes a party to a lawsuit that may significantly affect its business;

4. Where the relevant real estate investment company is filed for bankruptcy or declared bankrupt;

5. Where there is an application for commencement of, authorization for, or discontinuance of rehabilitation procedures under the Debtor Rehabilitation and Bankruptcy Act with respect to the relevant real estate investment company;

6. Where it falls under any subparagraph of Article 42-2(2);

7. Deleted; <Dec. 24, 2024>

8. Where the articles of incorporation is amended as a result of the enactment, amendment, or repeal of the relevant statutes or regulations;

9. Where it has received a credit rating in accordance with other statutes or regulations, the result thereof;

10. Other matters related to asset management of the real estate investment company, as determined and publicly notified by the Minister of Land, Infrastructure and Transport.

(3) "Matters prescribed by Presidential Decree" in Article 41(2)5 of the Act means the following: <Added on Jun. 22, 2021; Feb. 13, 2024>

1. Amendment to the articles of incorporation;

2. Change of the trade name;

3. Change of the capital;

4. Modification of the internal control criteria under Article 47 of the Act (limited to assets management companies);

5. Deleted; <Dec. 24, 2024>

6. Other matters determined and publicly notified by the Minister of Land, Infrastructure and Transport for the protection of investors, sound trading order, etc.

(4) Except as provided in paragraphs (1) through (3), detailed matters necessary for the reporting, such as methods of reporting and forms in which matters to be reported are prepared, shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport. <Added on Feb. 21, 2020; Jun. 22, 2021>

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

Article 43-2(Revocation of authorization for business) #

(1) "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" in the proviso of Article 42(1)4 of the Act means the following cases: <Amended on Jan. 16, 2014; Jul. 19, 2016; May 9, 2022; Feb. 13, 2024; Nov. 25, 2025>

1. Where a self-managed real estate investment company or an asset management company fails to meet the requirements for asset management specialists under Article 18(1) or 22-3(1) 2 of the Act and 60 days have not elapsed since the occurrence of such ground;

1-2. Where it fails to meet the requirements for asset management specialists under Article 18(1) or 22-3(1) 2 of the Act due to childcare leave of asset management specialists under Article 22(1) of the Act (referring to childcare leave under Article 19 of the Equal Employment Opportunity and Work-Family Balance Assistance Act); provided, only 1 asset management specialist who has taken childcare leave is recognized;

2. Where an asset management company fails to meet the equity capital requirements under Article 22-3(1)1 of the Act and falls under any of the following items; in such cases, whether it fails to meet the equity capital requirements shall be determined as of the end of each fiscal year:

a. Where 2 fiscal years (including the fiscal year to which the date of authorization belongs) have not elapsed since the date of authorization granted in accordance with Article 22-3(1) of the Act;

b. Where fiscal years (excluding fiscal years falling under item a) that fail to meet the equity capital requirements do not consecutively follow.

(2) "Operating funds prescribed by Presidential Decree, such as cash and bank deposits" in Article 42(1)7 of the Act means the following funds on the financial statements: <Added on Jan. 16, 2014>

1. Cash (including currency equivalents);

2. Demand deposit;

3. Cash equivalents, such as fixed deposit.

[This Article Added on Jul. 15, 2010]

[Title Amended on Jan. 16, 2014]

Article 43-3(Merger) #

Where a real estate investment company merges with another real estate investment company in accordance with Article 43 of the Act, Article 15 shall apply mutatis mutandis to the issuance price of stocks issued by the real estate investment company surviving the merger.

[This Article Added on Jun. 17, 2013]

Article 43-4(Dissolution) #

"Date prescribed by Presidential Decree" in subparagraph 9 of Article 44 of the Act means the date under Article 30-2(2).

[This Article Added on Nov. 25, 2025]

Article 44(Documents accompanying for registration of incorporation) #

"Documents prescribed by Presidential Decree, such as the articles of incorporation" in Article 45(3) of the Act means the following documents:

1. Articles of incorporation;

2. Minutes of incorporators‘ meetings;

3. A document verifying that incorporators have acquired all of the total number of stocks issued at the time of incorporation in cash;

4. An investigation report on the incorporation of company by directors or notaries public;

5. In the case of entrustment of the transfer of titles, documents verifying the entrustment thereof;

6. A certificate issued by a bank or other financial institutions for the custody of the subscription price paid.

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

Article 45(Internal control criteria) #

(1) The internal control criteria under Article 47(1) of the Act shall include the following:

1. Matters regarding division of affairs and organizational structure;

2. Matters regarding the management of risks arising from the operation of asset or the performance of affairs;

3. Matters regarding procedures that executive officers or employees must comply with while performing their affairs;

4. Matters regarding the establishment of a system that can efficiently convey information necessary for making decisions on business management;

5. Matters regarding procedures and methods for verifying whether executive officers or employees comply with internal control criteria and handling of executive officers or employees who violate internal control criteria;

6. Matters regarding procedures or criteria for preventing unfair trade practices, such as reporting on details of securities transactions by executive officers or employees;

7. Matters regarding procedures for establishing or amending internal control criteria;

8. Matters regarding procedures for appointment or dismissal of compliance officers.

(2) The Minister of Land, Infrastructure and Transport may recommend real estate investment companies and asset management companies which are found to have violated statutes or regulations as a result of supervision under Articles 39 and 39-2 of the Act to amend their internal control criteria to prevent the recurrence of violations. <Amended on Mar. 23, 2013>

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

Article 46(Compliance officers) #

(1) A compliance officer under Article 47(2) of the Act shall be a person who meets all of the following requirements: <Amended on Feb. 29, 2012; Mar. 23, 2013; Aug. 9, 2022; Feb. 13, 2024; Dec. 30, 2025>

1. That he or she shall fall under any of the following persons:

a. A person who has worked for the Bank of Korea or an institution subject to inspection under Article 38 of the Act on the Establishment of Financial Services Commission (including foreign financial institutions equivalent thereto) for at least 10 years;

b. A person who holds at least a master's degree in a field related to real estate, finance, or legal affairs and has at least 5 years of work experience in a position of a researcher or assistant professor or higher (including career before obtaining a degree) at a research institute or a university;

c. A person who is qualified as an attorney-at-law or certified public accountant and has at least 5 years of work experience in a business related to the relevant qualification;

d. A person who has at least 5 years of work experience at the Ministry of Finance and Economy, the Ministry of Land, Infrastructure and Transport, the Ministry of Land, Infrastructure and Transport, the Financial Services Commission, or the Financial Supervisory Service and 5 years have elapsed from his or her resignation or retirement from the relevant agency;

e. A person who has worked for a corporation related to real estate, construction, or legal affairs for at least 10 years and has at least 3 years of work experience in affairs related to legal affairs, compliance monitoring, or protection of investors in the relevant corporation;

2. That he or she shall not fall under any of the subparagraphs of Article 7 of the Act;

3. That he or she shall have no record of a warning of reprimand or a request for salary reduction, or any heavier measure from the Minister of Land, Infrastructure and Transport, the Chairperson of the Financial Services Commission, or the Governor of the Financial Supervisory Service for violating finance-related statutes under subparagraph 3 of Article 7 of the Act during the past 5 years.

(2) Deleted. <Dec. 24, 2024>

(3) A compliance officer shall perform his or her duties with the care of a good manager and shall not perform the following affairs:

1. Asset management affairs and affairs incidental thereto;

2. Matters regarding investment advice.

(4) Where a compliance officer requests an executive officer or employee to submit data or information in the course of performing his or her duties, a self-managed real estate investment company and an asset management company shall require the relevant executive officer or employee to comply with such request in good faith.

(5) Self-managed real estate investment companies and asset management companies shall not impose unfair personnel disadvantages on a person who was a compliance officer for reasons related to his or her performance of duties.

(6) Compliance officers shall not seek undue interests by taking advantage of information or positions obtained in the course of performing their duties.

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

Article 46-2(Reporting on exclusion from application of provisions on holding companies) #

Where an asset management company intends to report to the Minister of Land, Infrastructure and Transport that the provisions regarding holding companies under the Monopoly Regulation and Fair Trade Act do not apply in accordance with Article 49(6) of the Act, it shall submit a report determined and publicly notified by the Minister of Land, Infrastructure and Transport, accompanied by documents verifying that the company meets the requirements prescribed in the subparagraphs of paragraph (5) of that Article.

[This Article Added on Feb. 13, 2024]

Article 47 #

Deleted. <Jul. 15, 2010>

Article 47-2(Association‘s articles of association) #

(1) The articles of association of the Association shall include the following matters: <Amended on Feb. 21, 2020>

1. Purpose;

2. Name;

3. Matters regarding organization;

4. Matters regarding executive officers;

5. Matters regarding general meetings of shareholders and the board of directors;

6. Matters regarding offices;

7. Matters regarding affairs;

8. Matters regarding qualifications, rights, and obligations of members;

9. Matters regarding admission, expulsion, and other sanctions (including recommendations for sanctions against members' officers and employees) of members;

10. Matters regarding membership fees;

11. Matters regarding accounting;

12. Methods of giving public announcement.

(2) Where the Association intends to modify any matter referred to in paragraph (1)1 through 10, it shall obtain approval from the Minister of Land, Infrastructure and Transport; provided, this shall not apply where the details to be modified are in accordance with an amendment to statutes or regulations or where the details to be modified are insignificant, such as modification of simple wording. <Amended on Mar. 23, 2013>

[This Article Added on Jul. 15, 2010]

Article 47-3(Duties of association) #

"Affairs prescribed by Presidential Decree" in Article 49-5(1)5 of the Act means the following affairs:

1. Education for investors, etc. to create a sound real estate investment culture;

2. Education to cultivate a law-abiding attitude and professional ethics among executive officers and employees of real estate investment companies, etc.;

3. Other affairs necessary for achieving the objectives of establishment of the Association, as prescribed by the articles of association;

4. Affairs incidental to those specified in subparagraphs 1 through 3.

[This Article Added on May 9, 2022]

[Previous Article 47-3 moved to Article 47-4 <May 9, 2022>]

Article 47-4(Inspection of association) #

(1) Where the Minister of Land, Infrastructure and Transport deems it necessary while conducting an inspection under Article 49-5(2) of the Act, he or she may request the Association to report on its affairs or property, submit data, appear by witnesses, give testimony, and state their opinions. <Amended on Mar. 23, 2013>

(2) A person who conducts an inspection under Article 49-5(2) of the Act shall carry a certificate indicating his or her authority and produce it to persons concerned.

(3) The Minister of Land, Infrastructure and Transport may determine and publicly notify the methods and procedures for inspections, criteria for measures to be taken as a result of inspections, and other matters necessary for inspections. <Amended on Mar. 23, 2013>

[This Article Added on Jul. 15, 2010]

[Moved from Article 47-3; Previous Article 47-4 moved to Article 47-5 <May 9, 2022>]

Article 47-5(Establishment and operation of information system on real estate investment companies) #

(1) The information established and operated by the Minister of Land, Infrastructure and Transport in the information system on real estate investment companies under Article 49-6 of the Act (hereinafter referred to as "information system on real estate investment companies") shall be as follows: <Amended on Jul. 19, 2016; Feb. 21, 2020; Nov. 25, 2025>

1. A report on the establishment and current status of companies under Article 8-2 of the Act;

2. Matters regarding authorization for business under the subparagraphs of Article 9(2) of the Act;

2-2. Matters regarding registration under the subparagraphs of Article 9-2(1) of the Act;

3. Matters regarding offer for general subscription to issued stocks under Article 14-8 of the Act;

3-2. Matters regarding credit ratings received in accordance with Article 25-3 of the Act and other statutes or regulations;

3-3. Matters regarding report on incorporation under Article 26-4(1) of the Act and reporting and disclosure under paragraph (7) of that Article;

4. An investment report under Article 37 of the Act;

5. Matters regarding supervision and inspection under Article 39 of the Act;

6. Matters regarding authorization, registration, and reporting under Article 40 of the Act;

7. Matters to be reported under Article 41 of the Act;

8. Other matters the Minister of Land, Infrastructure and Transport deems necessary for the protection, management, and supervision of investors.

(2) The information that the Minister of Land, Infrastructure and Transport may request the relevant institutions, organizations, etc. to provide in accordance with Article 49-6(2) of the Act shall be as follows; in such cases, where the data and information that the Minister of Land, Infrastructure and Transport may request the financial institutions to provide in accordance with subparagraphs 2 and 4 fall under transaction information, etc. under Article 4 of the Act on Real Name Financial Transactions and Confidentiality, he or she shall comply with Articles 4, 4-2, and 4-3 of that Act with respect to the procedures, methods, etc. for providing such information:

1. Data and information related to the current status of real estate for investment;

2. Data and information related to the listing of stocks under Article 20 of the Act;

3. Data and information related to the borrowing of funds under Article 29 of the Act;

4. Other data related to affairs or property deemed necessary by the Minister of Land, Infrastructure and Transport to conduct an investigation for the protection of shareholders of a real estate investment company in accordance with Article 39 of the Act.

(3) Except as provided in paragraphs (1) and (2), matters necessary for the establishment, operation, etc. of an information system on real estate investment companies shall be determined by the Minister of Land, Infrastructure and Transport.

[This Article Added on Oct. 23, 2015]

[Moved from Article 47-4; Previous Article 47-5 moved to Article 47-6 <May 9, 2022>]

Article 47-6(Processing of sensitive information and personally identifiable information) #

The Minister of Land, Infrastructure and Transport (including a person entrusted with the duties of the Minister of Land, Infrastructure and Transport in accordance with Article 49-7 of the Act) may process information constituting a criminal history record under subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act or data containing resident registration numbers, passport numbers, or alien registration numbers under subparagraph 1, 2, or 4 of Article 19 of that Decree, if it is inevitable in order to conduct the following affairs: <Amended on Mar. 23, 2013; Oct. 23, 2015>

1. Affairs regarding grounds for disqualification of incorporators under Article 7 of the Act;

2. Affairs regarding authorization for business under Article 9 of the Act (including authorization for modification and reporting under Article 40 of the Act);

3. Affairs regarding qualifications, etc. for directors under Article 14 of the Act;

4. Affairs regarding qualifications, etc. for auditors under Article 14-2 of the Act;

5. Affairs regarding authorization, etc. for asset management companies under Article 22-3 of the Act;

6. Affairs regarding qualifications for compliance officers under Article 47(2) of the Act and Article 46 of this Decree.

[This Article Added on Apr. 20, 2012]

[Moved from Article 47-5; Previous Article 47-6 moved to Article 47-7 <May 9, 2022>]

Article 47-7(Entrustment of affairs) #

(1) The Minister of Land, Infrastructure and Transport shall entrust the support center with the following affairs in accordance with Article 49-7(1) of the Act; in such cases, where at least 2 institutions have been designated as the support center, the name, representative, and location of the entrusted institution for each of the following affairs shall be publicly notified: <Amended on Nov. 13, 2018; Feb. 21, 2020; Dec. 8, 2020; Jun. 22, 2021; Feb. 13, 2024; Aug. 13, 2024; Dec. 24, 2024; Nov. 25, 2025>

1. Verification of facts necessary for authorization for business, registration, registration of special cases, report on incorporation, authorization for modification, and registration of modification thereof under Articles 9(1), 9-2(1), 26-3(1), 26-4(1), and 40(1) of the Act, and affairs incidental thereto;

2. Verification of facts necessary for authorization for incorporation of assets management companies and authorization for modification thereof under Articles 22-3(1) and 40(4) of the Act and affairs incidental thereto;

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

4. Receipt of project investment reports under Article 26-4(7) of the Act and investment reports under Article 37(1) of the Act;

5. Verification of facts necessary for the inspection of affairs or property, etc. of a real estate investment company, etc. under Article 39(1) of the Act;

6. Establishment and operation of an information system on real estate investment companies (excluding the establishment and operation of database on qualifications for asset management specialists and completion of prior education and continuing education).

(2) The Minister of Land, Infrastructure and Transport shall entrust the following affairs to the Association determined and publicly notified by the Minister of Land, Infrastructure and Transport among the Associations in accordance with Article 49-7(1) of the Act: <Amended on Nov. 13, 2018; May 9, 2022; Feb. 13, 2024; Dec. 24, 2024>

1. Receipt of reporting on change of asset management specialists and verification of the reported details under Article 41(2)3 of the Act;

2. Establishment and operation of database on the qualifications for asset management specialists and the completion of prior education and continuing education in an information system on real estate investment companies;

3. Verification of qualifications, etc. of asset management specialists through the utilization of database under subparagraph 2.

(3) The Association entrusted with affairs in accordance with paragraph (2) shall report the results of handling the entrusted affairs to the Minister of Land, Infrastructure and Transport by the end of the month following the month in which each quarter ends. <Added on May 9, 2022>

[This Article Wholly Amended on Oct. 23, 2015]

[Moved from Article 47-6; Previous Article 47-7 moved to Article 47-8 <May 9, 2022>]

Article 47-8(Submission of investment prospectus by real estate investment companies not conducting public offering) #

(1) The investment prospectus under subparagraph 1 of Article 49-8 of the Act shall be submitted to the Minister of Land, Infrastructure and Transport within the period determined and public notified by the Minister of Land, Infrastructure and Transport from the date on which the real estate investment company and the asset management company first solicit a subscription for underwriting of stocks.

(2) A real estate investment company or asset management company under Article 49-8 of the Act shall prepare an investment report under subparagraph 2 of that Article at each of the following times:

1. The last day of the accounting period (referring to the date of liquidation or merger, in the case of a real estate investment company extinguished upon dissolution or merger);

2. The date every 3 months end from the commencement date of the business year (excluding the last day of the accounting period).

(3) The investment report under paragraph (2) shall be submitted to the Minister of Land, Infrastructure and Transport within the following period from the date of preparation under that paragraph:

1. An investment report prepared at the last day of the accounting period (excluding the case of a real estate investment company liquidated upon dissolution or merger) under paragraph (2)1: Within 90 days;

2. An investment report prepared at the date of liquidation or merger of a real estate investment company liquidated upon dissolution or merger under paragraph (2)1: Within 45 days;

3. An investment report prepared on the date under paragraph (2)2: Within 45 days.

(4) Disclosure of occurrence of financial accidents or non-performing assets under subparagraph 3 of Article 49-8 of the Act shall be made without delay by the methods prescribed in each subparagraph of Article 37(4) of the Act upon occurrence of such reasons.

[This Article Added on Nov. 25, 2025]

[Previous Article 47-8 moved to Article 47-9 <Nov. 25, 2025>]

Article 47-9(Re-examination of regulation) #

The Minister of Land, Infrastructure and Transport shall examine the appropriateness of the requirements for registration of real estate advisory companies under Article 24 every 3 years, counting from January 1, 2014 (referring to the period that ends on the day before January 1 of every third year) and shall take measures, such as making improvements.

[This Article Wholly Amended on Mar. 24, 2026]

Article 48(Criteria for imposition of administrative fines) #

The criteria for imposing administrative fines under Article 54(1) and (2) of the Act shall be as specified in Appendix 2. <Amended on Jan. 16, 2014>

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