[JIPYONG LLC] Korea Legal Insight (May 19, 2025)

KOREA LEGAL INSIGHT
Korea’s Real Estate Investment Act Amendments: Streamlined Compliance and Broader Investment Scope
May 19, 2025

Seoul’s commercial real estate market has experienced significant growth, with investment activity accelerating in recent months. According to a report released by CBRE Korea, a commercial real estate services firm, total commercial real estate investment volume in Korea for Q3 2024 reached approximately KRW 6.6 trillion, representing a 43% increase from the previous quarter. Against this backdrop, recent amendments to the Enforcement Decree of the Real Estate Investment Company Act (“Enforcement Decree”) introduce substantial regulatory changes aimed at enhancing compliance, expanding investment opportunities, and strengthening investor protections. These changes are expected to streamline operations for real estate investment companies (“REICs”) and ease regulatory burdens, particularly for foreign investors and stakeholders.

1.	Adjustment to the Calculation Method for Constituent Assets
2.	Enhanced Investor Protection Through Compliance Oversight
3.	Regulatory Exemptions for Minor Business Changes
4.	Eased Eligibility Criteria for Major Shareholders

KLI Editors

Jinhee KIM

Andrew J. PARK

Sanghee LEE

Seung Min LEE

26F, Grand Central A, 14 Sejong-daero, Jung-gu, Seoul T. +82-2-6200-1600 E. master@jipyong.com

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