Korea Exchange Recommends Investing In REITs (The Korea Times)
November 2, 2021 – Investing in real estate investment trusts (REITs) has emerged as a good alternative for domestic investors, amid the continued horizontal price movement in the local stock market, according to the Korea Exchange (KRX), Monday.
SK REIT, for example, drew attention from investors at the time of its listing on the benchmark KOSPI market in September. The attention was mainly attributed to a growing number of investors focusing on REITs or investing in them after witnessing the lackluster performance of the stock market.
“Korea’s listed REITs market has continued to draw attention from investors,” a KRX official said. “We hope the listed REITs market, which is continuing to grow quantitatively and qualitatively, becomes a new alternative for investors confused with the flat stock market and those seeking stable dividend incomes.”
REITs refer to companies that raise funds from investors, make investments in real estate or real estate-linked securities and distribute their earnings to the investors. After the world’s first REIT was founded in the U.S. in the 1960s, the trend of establishing REITs spread to Europe and Asia during the 2000s.
In the wake of the Asian financial crisis in 1997, Korea started allowing REITs in April 2001 for the purpose of restructuring businesses through the liquidation of their real estate holdings they owned.
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