Company

Real Estate Investment Trusts

What is REITs

Pursuant to the Real Estate Investment Company Act, a REIT is an incorporated indirect real estate investment
vehicle that collects funds from multiple investors in order to invest in real estate properties, such as offices, then
returns profits from managing and selling said properties to investors in the form of dividends.

Advantages of
investing in REITs

REITs are known to offer outstanding transparency in decision-making in which major management issues are decided through the
Board of Directors and general shareholder meetings under the supervision of a supervising authority.

Various tax benefits, stable dividend income based on real estate rental income, and excellent
liquidity are other notable advantages of REITs.

Transparent
investment vehicle

Outstanding
yield

Transparent decision making

Decisions on important operational issues made through the Board of Directors

Borrowing funds, issuing bonds, approving financial statements,
paying asset management fees, other important operational matters, etc.

Important resolutions made through general shareholder meetings

Business plans, plans to borrow funds, plans to issue bonds,
dividend payment, director remuneration, etc.

Management and supervision /
disclosureobligations and expertise

Managed and supervised by the Ministry of Land, Infrastructure
and Transport, fulfilling of reporting and disclosure obligations

Fulfills reporting and disclosure obligations, such as investment reports and business reports, to supervising authorities and investors pursuant to the Real Estate Investment Company Act, Commercial Act, Capital Market Act, etc.

Managed and operated by expert asset managers

Workforce features skilled operators qualified pursuant to the
Real Estate Investment Company Act.

Stable dividend and convenient liquidity

Stable quarterly/half-yearly payment of dividends sourced from rental income

Generates a stable cash flow (e.g. rental income) using real estate properties such as offices and gas stations serving as underlying assets

Easy to buy/sell in the securities market

Investors can liquidate their holdings of a listed REITs and secure cash when necessary.

Government tax benefits

Tax breaks pursuant to the Corporate Tax Act, Local Tax Act, etc.

No corporate tax when 90% or more in distributable profit is paid out as dividends. Listed REITs are separately taxable and are exempt from comprehensive real estate holding tax.*
* Private REITs/funds: Property tax 0.2~0.4% Comprehensive real estate holding tax 0.5~0.7%

REITs dividend income for retail investors separately taxable

9.9% separate taxation on dividend income paid for 3 years up to KRW 50 million invested per person

* Courtesy of Korea Association of Real Estate Investment Trusts

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