• Credibility (Safety): You don’t need to risk your property. All of our services are approved by the Financial Services Commission in accordance with the Trust Business Act (namely the Capital Market And Financial Investment Act) and is conducted legally and fairly. In addition, the trusted property is excluded from compulsory execution and accounted, managed, operated independently, securing the safety of the property.
• Economic Effect (Profitability): We provide high profits. We provide the highest profit to our customers by developing, managing, and disposing of the property in the most effective way, creating the maximum profit based on the expert knowledge and experience.
• Convenience: We take care of the real estate related to complicated issues. We will work as an agency to take care of the complicated paperwork related to real estates such as real estate development, construction, sales, laws, tax, finance, and administration.

Tax: Trust is a nominal transfer of the ownership and there is no acquisition tax. The registration tax is about KRW 3,600 each case.
※ Trust does not exempt the obligation to the property tax and comprehensive real estate holding tax.

We are a comprehensive development and financial consulting expert providing services on land (development) trust, management trust, disposal trust, collateral trust, real estate investment trust(REITs), consulting, mediation, and agency work (development, purchase, sales, fund management).

Trust is a nominal transfer of the ownership and there is no acquisition tax pursuant to the Local Tax Act. The registration tax is about KRW 3,600 each case.
※ Trust does not exempt the obligation to the property tax and comprehensive real estate holding tax.
※ Procedure: Trust agreement → Payment → Trust Registration (through a judicial scrivener)

• In the case of type A management trust or collateral trust where a trust company bears the responsibility for the management, the company needs to have the property insured and the pledge must be set by the company for the truster’s insurance policy. In the case of a collateral trust, the truster needs to bear the cost of the insurance.
• In the case of B type management trust where only the ownership is managed by the company, the real estate management plan contract is made simultaneously with the trust contract, and the truster is responsible for practical management. Therefore, the trust company does not control fire insurance and other matters.

The trust act includes the transfer of ownership or disposal and the truster must have the ability to dispose of the ownership. Therefore, minors or quasi-incompetent persons are unable to conduct the act practically. However, incompetent individuals may conduct trust under the consent of a legal representative, or a legal representative may set up a trust directly.

• If a contract is made, a new legal relationship is made and the cancellation of the contract may be restricted to protect the benefits of the interested parties.
• According to the standard trust contract, the contract cannot be canceled in principle. However, it is possible to cancel under the agreement of the truster, beneficiary, primary beneficiary, trust company, and other involved parties. In other words, for cancellation, the cancellation form and the letter of agreement from all interested parties must be submitted along with the certificate of trust revocation for canceling trust registration.
• Early termiation of the trust contract is possible only when specified in the terms of the contract. The truster must bear the cost related to the cancellation. In addition, the truster must provide compensations for the damage occurred to the company by the cancellation.

In the column for the title of the real estate register, items related to indication of a real estate are indicated. However, nothing particular will be indicated in this column for trust. In the section A of the register where the ownership relationships are incidated, the purpose column will be indicated as the transfer of ownership, the reason as trust, and the right holder and notes as the name of the trust company. The trust contract will also be indicated with its authentication number. The register can be issued by anyone by the competent registry office.

• Procedure : Consultation and request → Prepare required documents → Trust contract and register → Conduct the needed work → Completion of the contract terms
• Basic documents
  Collateral, management, disposal trust: Basic documents
  Land(development) trust, agency service: Basic documents + land registration map + location map and other maps + project plan + profit analysis data

What are basic documents?
Registration certificate
Real estate register (land, building)
land(woods and fields) register
Building register
Land use plan
A copy of sales contract / appraisal reports / public notice of land price
Rental confirmation of the owner and a copy of the lease contract
Resident register (Corporate register)
Seal certificate
Certificate of full payment of national and local tax
A copy of the business license (in the case of corporate)
Articles of association (in the case of corporate)
Minutes of the board of directors (In case of corporate, a form is provided)
Real estate trust application form (a form is provided)
Other required documents

A collateral trust is a product that a customer can conveniently receive a loan with a real estate asset as collateral by way of an advanced mortgage system that costs less and is more convenient than a mortgage system. Through the mortgage trust system, a real estate owner can obtain a beneficiary right certificate after providing a trust registration to a trust company and provide the mortgage to a financial institution to receive a loan.

• A collateral trust costs a debtor less than a mortgage.
• A real estate investment trust company facilitates the management of trust assets after the execution of a loan when a financial institution makes a decision about the loan.
• During trust periods, customers can be protected from unexpected third-party bonds.
• In case of default of an obligation, a trust property is converted and the converted money is given to creditors as debt payment, and the remaining amount is distributed to the consignor.

Distinction: Mortgage / Collateral Trust

• The way of establishing security right
  Establishing mortgage (“Type B” in register) / Ownership transfer in trust register (“Type A” in register)
• Preserving real estate collateral value
  Management and preservation by a bond issuing entity / Management and preservation by a trust company
• Establishment of a bankrupt foundation
  Included in the bankrupt foundation / excluded from the bankrupt foundation
• Ways to practice the bonds
  Court auction / short selling by a trust company or a private contract
• Procedure and expected time
  Auction in a closed market / short selling in a general open market
  Complicated procedures, takes a long time / Simple and convenient, takes a short time
  Impossible to sell the collateral real estate at a high price / Possible to sell the collateral real estate at a high price
• Bond withdrawal sales price range
  Within the established price / Within the range of the primary beneficiary right

A land trust is a product through which a landowner who lacks development know-how or financial resources trusts his or her land to a trust company for the purpose of earning profits by efficiently utilizing the land. A trust company combines the landowner’s opinions and expertise to finance the construction, develop residential land or build a building, and then to return proceeds from the sale or lease of the land to the landowner.

• Effective land development by experts even without funds or construction experience.
• Avoidable financial burdens and procedural hassles from business operation.
• Maximizing profit of landowner.
• Salability can be raised as a business operator with high creditworthiness directly sell and lease real estate.

A management-type land trust is a product through which an entrustor directly procures business expenses from financial institutions and construction companies and pays them. Although it is similar to a general land (development) trust, there is a difference in funding method. In addition, this trust is able to hedge the risk of going bankruptcy or default, thereby promoting stable development of projects and preventing the risk of problems in the sale.

• In the even of an entrustor’s default or bankruptcy, trust assets are managed as an independent property and stable business can be implemented since the trust company is a business operator.
• A sale(lease) contract under the name of a trust company may prevent trade accidents such as duplicate contracts and the misappropriation of payments for buildings.
• A management-type land trust prevents delays in construction completion and in residents’ moving-in due to unexpected disputes between contractors and developers including the prevention of a breach of contract and an unfair act and enables interested parties to pursue their rights.

In land trust (leveraged trust), a trust company obtain business cost except for the land cost / In management-type land trust, a truster, financial institution, and constructor, excluding a trust company, obtain business cost.

A sales management trust is to systematize the sale and management of stores based on the thorough sale, process management, and stability so that a trustee can secure the ownership of the trust property in the sale of buildings such as shopping malls in accordance with the Act on Sale of Buildings. This trust aims to convert and sell off trust real estate and calculate payments at the time of an entrustor’s default of an obligation.

• Reduced early burdens on operators due to post-construction sale so that pre-construction sale can be implemented according to the Act on the Sale of Buildings.
• Pursuing the transparency of the sale process and the stability of transaction by preventing damage to a buyer as a lot for construction and a construction permit are not secured.
• Increasing sales rates as a means of safeguarding the rights of buyers.

Agency service is a product to handle complex real estate related business such as business planning, land, purchase, funding, business licensing, sale, and fund management in place of a customer.

• Enhancing a chance of making a success of various types of transactions based on credibility.
• Through the expertise and intelligence of a trust, it is possible to map out a thorough business plan, select a construction company and to shorten a period to receive approval or permit.
• If a trust company manages income from the sale, a trust company will relieve the anxiety of the buyers who signed sale contracts, thereby promoting the sale of a building and making it easier to receive funds from financial institutions.

A disposal trust is a product in which a real estate owner entrusts real estate that is difficult to sell off such as a large real estate, high-priced real estate, or complicated real estate to a trust company. The trust company finds a suitable customer and stably sells off the real estate and gives the payment to the beneficiary. In the disposal trust system, unlike general brokerage, a trust company is trusted with the property with the rights and position as the owner which would be more credible for buyers.

• In the case of a real estate which takes much time to finish payment of remainders, this trust keeps ownership safe.
• Unlike general brokerage, a reliable trust company becomes a seller, so buyer can safely make a purchase.
• Real estate can be sold off quickly and safely in the right way.

A management trust is a product that cuts back on management cost and raises the value of real estate through professional real estate management. This trust is divided into Type A Management Trust which generally manages real estate such as real estate ownership, lease, facility maintenance, legal affairs and tax management, and Type B Management Trust that manages that ownership of a trust property only.

• Pursuing the value and profit of real estate based on the trustworthiness and sales network of a trust company.
• Enabling professional and efficient real estate management and dramatically slashing property management costs.

The real estate owner (a truster) uses the service in the purpose of creating higher profits with the professional and effective management of the property. Not only does a trust company (a trustee) manages the ownership of the trusted real estate, it also manages lease, facilities and technologies, tax, regulations, and other tasks that are deemed to be needed and the benefits gained from the activities are distributed to a beneficiary.

The real estate owner (truster) uses the service in the purpose of protecting the ownership in the case of unpredicted conflicts that may occur regarding their real estate. As the project financing for development projects are active in recent years, many clients are using the service to protect their ownership of their real estate during the development project period. A trust company (trustee) will be handed over and manage only the ownership of the real estate owned by a real estate owner through a trust contract.

The purpose of the type B trust contract is the ownership management of the trusted property on the register to maintain the secured right of the trusted real estate stably. The cost involved in the trust and procedure and management and maintenance of the real estate will be borne by the truster. Only the “ownership” on the register will be managed, not other tasks regarding management or maintenance of the real estate. In recent years, the service is actively used for the development project. In the case of an apartment building, the real estate ownership is safely protected by the time of the project approval.

Depending on the client’s request, the real estate experts conduct research and analysis to propose the optimal way of utilizing real estate and funding.

• Proposing the optimal way of utilizing the property such as deciding on the location and analyzing the business validity.
• Consulting on real estate development, investment, and related regulations and tax system.
• Supporting real estate development, sales, purchase, lease, and exchange.