부동산투자회사(REITs)의 發展方案에 관한 硏究

부동산투자회사(REITs)의 발전방안을 연구했다.

Government used to have a real estate policy to restrain speculation, but its been changed to support real estate market in order to archive a structure regulation and business recovery. Furthermore, there was a launch of the Real Estate Investment Company Act on July 1st of 2001, which means we started the era of real estate indirect investment. The Real Estate Investment Company Act is based on the REIT Act in the states. However, it was modified in regard to economic situations in Korea when it was launched. The purpose of the Real Estate Investment Company Act is to archive the liquidity of real estate investment, which is the reason why their structure is a company.

It also has a regulation not to have unqualified real estate companies in a market. Other regulations are that a company cannot invest high risk properties more than a certain percentage so that company can be stable and there is a disposition prohibition in fixed period in order to prevent speculation. Te Real Estate Investment Company Act have a special case that CR-REIT doesnt have to pay a certain tax. Consequently, a lot of companies preparing for REIT tend to turn to CR-REIT. However, it cannot be permanent because CR-REIT is based on the solution to the financial crisis. It is necessary to activate REITs for the successful establishment of the Real Estate Investment Company Act.

First, from the perspective of the management, it is recommended to introduce the UPREITs or DOWNREITs in the states in order to activate the system and maximize the internal rate of return. It is because that government thinks if investment in kind is admitted, there will be an over estimation of an asset value, which is not true. According to the Real Estate Investment Company Act, company cannot invest more than 30 percentage of its capital in new development, but company cannot have a reasonable rate of return under this regulation because real estate price is too expensive if only they can get a rent.

If government considers about the leverage effect of real estate investment, they should permit the borrowing operating. Second, it is necessary to give out the market data based on real estate rate of return under the public confidence power so that we can have a lot of professionals in a real estate market. The license of analyzing the real estate investment is also necessary to activate the Real Estate Investment Company Act. We also need people having a international mind and a developed method of appraising. Third, the perspective of taxation support has to be changed.

Under the current tax Act, the real estate investment company can only have a sunset clause according to Restriction of Tax Reduction and Exemption Act. However, the real estate investment company is the paper company to make an indirect investment in real estate. We should think about the reduction, not taxation support. The Real Estate Investment Company should pay tax except the 50% of the amount of net-investment which is considered to be a reserve fund. However, dividend should be also excluded because economic substance of the REIT is the paper company. Fourth, the real estate information net work system should be launched.

it is recommendable to make a joint investment because real estate institutes are not qualified. It is also necessary to make expense-income data which is the base of analyzing the real estate rate of return. We have made those information because we have to prepare for the housing problems and increasing price of land. There should be the effectiveness and feasibility of the produced information and index. The REITs is not just for structure regulation. It can provide an opportunity to people to invest large-scale properties and make a securitization so that our market can be liquid. We should have a perspective that It is a kind of a long term reformation method.

We should think about the time we tried to introduce the Real Estate Investment Company Act and make a successful establishment of the real estate investment company.