Korea's First REIT AMC Koramco Marks 25th Anniversary

Launched after the IMF crisis to support corporate restructuring
Pioneered Korea's real estate finance market as its first REIT AMC
Reclaimed the top spot in Korea's REIT market by market share

Koramco Asset Trust, which launched as Korea's first real estate investment trust asset management company (AMC), said it held a ceremony on the 23rd ahead of its 25th anniversary.

Koramco was established in 2001, when Korea introduced its REIT system. Over the past 25 years, it has expanded its business from corporate restructuring REITs to listed REITs, real estate funds and development projects, contributing to the growth of Korea's real estate finance market. In particular, this year, its 25th anniversary, it reclaimed the top spot in the domestic REIT market by market share.

Koramco Asset Trust held an anniversary ceremony on the 23rd ahead of its 25th anniversary. Koramco

The approximately KRW 620 billion Arenas Yangji logistics center, which Koramco Asset Trust is seeking to acquire, is reportedly expected to close as early as early next month. Considered the largest logistics center acquisition target in Korea, the asset is a super-large, ambient-temperature logistics center with a gross floor area of approximately 345,000 square meters. CJ Logistics has leased the entire facility on a long-term basis through 2035. Koramco, which was selected as the preferred bidder in July, is now in the final stages of the acquisition process.

Last week, Koramco was also selected as the preferred bidder in the contest to acquire ABL Tower in Yeouido, Seoul, after offering approximately KRW 340 billion. The company is also nearing the close of its acquisition of Lotte Deokpyeong Logistics Center, using funds from a blind REIT entrusted by the Korea Post. This has raised expectations for its fourth-quarter performance.

Koramco's launch was linked to the restructuring of Korean companies following the 1997 foreign exchange crisis. At the time, companies needed to sell their real estate to improve their financial structures, but there were not enough investors to acquire large-scale properties or an adequate financial system to support such transactions. To support corporate asset securitization and stabilize the real estate market, the government enacted the Real Estate Investment Company Act in 2001, and Koramco was established in October of that year as Korea's first REIT AMC.

The following year, Koramco launched KoCREP No. 1, a corporate restructuring REIT, and acquired properties including Janggyo Building in Seoul, the headquarters of the Hanwha Group. In 2005, it introduced Korea's first externally managed REIT, expanding its business into the general real estate investment market. In 2019, it completed Korea's first redevelopment project under a trust-based model, introducing new investment and business approaches across REITs, trusts and development projects. That same year, it welcomed LF, a future-oriented lifestyle and culture company, as its largest shareholder, establishing a new foundation for growth.

Koramco currently has approximately KRW 60 trillion in assets under management. This figure comprises approximately KRW 20 trillion in REIT assets under management (AUM), approximately KRW 22 trillion in real estate fund AUM, and approximately KRW 18 trillion in assets entrusted to its real estate trust business. Since launching as a REIT AMC in 2001, the company has expanded into real estate trusts and fund management, growing into one of Korea's major real estate finance companies.

The company's founding mission of supporting asset securitization for Korean companies remains relevant. A recent example is its real estate securitization project for Hyundai Motor. This year, Koramco incorporated 11 of Hyundai Motor's business locations across the country into a REIT valued at approximately KRW 580 billion. The sale-and-leaseback structure allows Hyundai Motor to sell its real estate and lease it back on a long-term basis, enabling the company to secure funding for future business investments while maintaining its existing operations.

Koramco is also expanding its asset management business for institutional investors. It invests in offices, logistics centers and residential properties using funds from investors such as the National Pension Service and mutual aid associations. This year, it was selected as the preferred bidder in succession for large-scale outsourced real estate management projects led by Korea Post and the Government Employees Pension Service.

As it manages long-term investment funds with a strong public-service character, investment stability and risk management are among Koramco's core management principles. This year, the company maintained a corporate credit rating of "A" and a "Stable" outlook in regular assessments by NICE Investors Service and Korea Investors Service. In particular, under NICE Investors Service's rating criteria, it has maintained a credit rating among the highest in the real estate trust industry for nine consecutive years.

This year, as it marks its 25th anniversary, Koramco also set a new record in market share. According to the Korea REITs Association, Koramco Asset Trust recorded a 12.8% share of Korea's REIT market. It ranked first among all REIT AMCs, including Korea Land and Housing Corporation (LH), marking the first time in about 10 years that a private-sector manager had reclaimed the market lead.

"Koramco began with the founding mission of supporting corporate asset securitization and stabilizing the real estate market, and over the past 25 years, it has expanded its business alongside the growth of Korea's REIT industry," said Jeong Seunghoe, CEO of Koramco Asset Trust. "Going forward, we will continue to contribute to companies' stable growth and generate long-term returns for the public's retirement assets through rigorous risk management and investor-focused management."

He added, "Our 25th anniversary marks the completion of the first quarter of our journey toward becoming a 100-year company. Building on the expertise we have developed in Korea over the past 25 years, we will expand our operations into global markets in the next quarter and grow into a real estate investment company that provides investors with stable, long-term returns."

This content was produced with the assistance of AI translation services.