• Navigating the new “Project REITs regime” under the Amended Real Estate Investment Company Act
• Formation of Project REITs Task Force consolidating the firm’s expertise in real estate, finance and tax to offer structuring advice on Project REITs – the REITs specialized for real estate development projects

Shin & Kim LLC (“SHIN & KIM”), led by managing partner Jong-Han Oh, announced the creation of its Project REITs Task Force in anticipation of the new framework for Project Real Estate Investment Companies (the “Project REITs”)  introduced under the amended Real Estate Investment Company Act (the “Amended REIT Act”), which was passed by the National Assembly on May 1, 2025.

The Project REITs regime introduced under the Amended REIT Act provides greater flexibility for using real estate investment companies (REITs) as vehicles for implementing real estate development projects, and it includes various provisions specific to this new regime. Notably, Project REITs will be permitted to carry out real estate development projects immediately upon submitting an establishment report, and exempt from the public offering obligations and share ownership limitation during the development and stabilization phases. Because the new Project REITs regime offer greater regulatory flexibility than the existing REITs regime, it has generated strong industry interest and expectations.

To help businesses proactively navigate the fundamental changes in various areas of real estate development projects under the new regime, including capital raising, stability, and strategic planning, Shin & Kim has created a dedicated task force that includes attorneys and experts with practical experience and expertise in real estate alternative investments, project finance, tax, and public policy.

Shin & Kim’s newly launched Project REITs Task Force will focus on developing comprehensive strategies for the practical implementation of Project REITs and advising to facilitate their stable adoption in the market under the new regime. As an initial step, the Task Force will examine various practical and structural issues that may arise during the formation and operation of Project REITs, including registration requirements, structuring in-kind contributions and borrowing, and capital increases through third-party allotments. In addition, the Task Force will gather industry opinion on the upcoming enactment and amendment of the Enforcement Decree of the REIT Act and its subordinate regulations, and deliver practical insights to government authorities, contributing to the policy-making process that reflects industry perspectives.

Shin & Kim also plans to hold brown bag meetings and seminars for stakeholders including developers, construction companies, asset management companies (AMCs), and investors interested in utilizing Project REITs, and will provide practical guidelines to enhance industry-wide understanding and ensure readiness across all stakeholder groups. In particular, Shin & Kim will provide structuring advice across a range of REIT formats, including master-feeder structures, hybrid real estate development REITs, and integrated models involving trust arrangements. It will also provide comprehensive tax advisory services on key incentives available to Project REITs, such as tax deferral, excess dividend distributions, and local tax exemptions.

The Project REITs Task Force will be chaired by partner Kyoung Soo Chang (32nd Class of the Judicial Research and Training Institute, JRTI), the head of Shin & Kim’s Real Estate and Alternative Investment Group. He brings deep expertise and a broad track record in real estate finance, including the sale of the Pangyo Alphadom Tower. The Task Force will also be joined by Advisor Jung Han Kim, former policy lead for REITs and licensing matters at the Ministry of Land, Infrastructure and Transport, who brings extensive experience and knowledge in overseas construction and real estate investment.

The Task Force will also include Thak-Hwan Kim (partner, Class 32 of JRT), Seung-Hyun Lee (partner, Class 37 of JRTI), In-Yong Hwang (partner, 5th Bar Exam), and Hyebin Choi (associate, 10th Bar Exam), who bring substantial hands-on experience in the establishment and operation of REITs, capital raising, public offering and listing, tax matters and regulatory compliance. The Task Force will operate as an integrated team, tapping the collective knowledge and expertise of a team to provide comprehensive advice to its clients.

“Project REITs mark a significant shift in Korea’s REIT framework and are expected to set new standards across all project stages—from development, asset management to public offerings and listings,” said partner Kyung Soo Chang. “Through the launch of our new Task Force, Shin & Kim aims to set practical guidelines for development-type REITs and play the leading role in supporting the adoption of the new regime in Korea.”