Real estate investment trusts (REITs) are surging in popularity among Korean investors
The Korean REIT market will likely expand with governmental support and the currently low interest rate environment in Korea. Asset managers and securities firms need to continue educating themselves about REITs, including even recruiting REITs specialists to prepare for a full-fledged expansion of the REITs market. Currently office REITs offer the greatest opportunity, but AMCs and existing REITs should find a variety of real estate to develop into publicly listed REITs. To take advantage of government subsidies, we recommend AMCs pool existing real estate funds into indirect REITs.