South Korea To Incentivize REITs
Thursday, February 4, 2016
As part of a new program to make South Korea's real estate sector a "high
value-added service industry," the Ministry of Land, Infrastructure, and
Transport has stated that it will provide further tax incentives to encourage
real estate investment trusts (REITS).
REITS do not yet form a substantial part of the South Korean property investment
sector. However, in a new real estate plan to be promoted by the Ministry, their
growth is to be particularly encouraged.
Without providing specific details at this stage, it has been indicated that
further tax incentives will be granted for property investors and developers
to incorporate REITS listed on a stock exchange.
In addition to providing the flexibility for REITS to invest in property development
activities, those incentives will presumably be comparable with the corporate
tax breaks available to REITS in other countries.