부동산투자회사법에 대한 검토와 개선방향

부동산투자회사법의 주요 내용과 개선 방향을 검토했다.

The Republic of Korea has introduced Real Estate Investment Trusts (REITs) since experiencing IMP crisis in 1997. The introduction of REITs may give several advantages in spite of immature market environments. Investing REIT industry are giving a new investment tool to investors and a new corporate restructuring procedure. In order to overcome financial difficulties resulting from IMF crisis most corporations had no other choice than having corporate restructuring done. The Real Estate of Investment Company Act of 200 I (REICT) in Korea has two types of REIT: general (or Korean REIT: K-REIT) and Corporate Restructuring REITs (CR-REIT).

Only stock corporations are allowed to enter REIT industry. CR-REIT has a finite life, because the Act requires CR-REIT to set its life in the articles of incorporation from the start of its business. The Act mandates that at least 70% of the CR-REIT's assets must be invested exclusively corporate restructuring. Regardless of many restrictions in managing corporate assets, however, CR-REIT is popular, because it provides more tax benefits than K-REIT, and allows many advantages in the statge of incorporation. Further, CR-REIT enjoys the relaxation of restriction in stock ownership by a person.

Due to rough-and-ready enactment of Real Estate Investment Company Act and conflicts between many governmental bodies and economic subjects, the Act has many problems that should be improved. First of all, the regulatory framework that REICT, the Securities Investment Act, the Securities Investment Trust Act, the Securities Exchange Act are mingled in aspect of REIT regulation should be arranged. Second, the regulation in the establishment of REIT should be lessened for promoting active REIT market environment. Third, for the purpose of improving investor protection, disclosure obligation in detail for issuer is required.

Finally, to encourage REITs market in Korea, more tax benefits should be provided to investors. More disclosure of corporate information is also required for investor protection and well-informed investing environments.