리츠의 지배구조 개선에 관한 고찰

A Study on the Improvement of Governance in K-REITs

Now only a few k-REITs take public in korea exchange and some of them have been delisted or is being delisted. In this situation, It is important to establish and improve the governance of K-Reits to raise abundant capital through stock market. Using Reits, investors who don’t have enough experience can invest his or he money in stocks on real estate and huge buildings which a private investor hardly invest. Raising funds through stock market, from the view of social aspects, a property market can be advanced and transparent. REITs’ governance can be a little different from other corporations. RETs is a kind of incorporated, so it has shareholder meeting, a board of directors and an audit system. In K-REITs, the founder or the largest shareholder sometimes exert control, so it needs to reinforce supervisory function of a board of directors. For the sake of it, the role of chairman and CEO should be spilt to control each other and Annual general meeting in K-REITs should be mandatory to protect the right of minority shareholders. The board of directors should have to approve the Internal Control Guidelines and the appointment of compliance officer and selling properties that is over the limited price by policy as a whole. It is recommended that time-vested restricted stock should be the main component of executive pay from a long-term prospective. Independent compliance officer have to come under scrutiny on related-party transactions. In sum, it is expected that professional and methodical development of real estate can be attainable through establishing fair and transparent governance of REITs.