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.