The act of creating a trust is the consigning of property (entrusted property) by those who hold the property rights (consigners) such as cash or real estate to consignees, and at the same time, to manage and dispose of the property for themselves or others (beneficiaries) according to specific purposes (trust purposes).
Profits are maximized with the combination of landowner’s opinion, expertise of trust company and business knowhow
We return the property value
increases and profits to customers
through improvement and
development of poor
residential conditions.
In the past, association method maintenance Business relying on constructors had various difficulties such as project expense securing problem because of insufficient expertise, share allotment of land owners, conflicts between associations and constructors and various corruptions and irregularities. To resolve these problems and to achieve efficient urban regeneration, in March 2016, city and residential environment maintenance law was revised and trust method maintenance Business was introduced. Through this, slow maintenance Business sites accelerated development and project efficiency was enhanced, and it is fast spreading to the entire nation through Seoul, Yeouido, and Gangnam.
KORAMCO REITs & Trust implements reconstruction projects' developmentㆍmanagementㆍoperation businesses in place for reconstruction association based on systematic legalㆍtechnologyㆍsales capability and capital. In particular, it has urban Maintenance Business headquarters specialized in urban maintenance and two maintenance Business teams under the headquarters, and in Devember 2015 obtained house reconstruction projects in Anyang and Hogye, the business proxy method house reconstruction projects for the first time as a trust company.House reconstruction projects in Anyang and Hogye were successfully completed with contracts of association members and the general public, through specialized construction management, it will be completed and residents will move in in 2019. As of the first quarter in 2018, KORAMCO asset in trust has the only experience of constructing trust type reconstruction projects, and it has become the best partner by expanding order obtainment not only through participation in the form of project proxy but also in the unilateral implementaion form.
Development projects are conducted
with greater stability and fewer
sales-related disturbances as it
effectively hedges default
/bankruptcy risks.
A Trustor (Original Contractor)
Default-Risk Hedge
Professional real estate management
can reduce costs and raise real
estate values
For real estate that cannot be easily
disposed of, the appropriate buyers
are found and the real estate is
disposed of at an optimal price
in a short period to cater
to customer needs.
Mortgage Trust that is low-priced and convenient raises the convenience in accessing a financial institution and applying for loans.
Classification | Mortgage Trust |
---|---|
Collateral Setting |
Trust registration ‘Class A’ on the registry |
Preservation of Collateral Value |
Managed and preserved by |
Collection Procedure |
Complicated/Long-term Court auction Impossible to sell the collateral real estate at high prices |
Category of the Real Estate Divisible for Distribution amongst Creditors |
ㆍExcluded from the category |
Request for Subordinated Rights for New Lease |
Possible to exclude Favorable in maintaining the collateral value |
Required Fees |
Exemption for registration / local education tax and purchasing of National Housing Fund bonds Trust fees (cheaper than mortgage fees) No need to set superficies |
Classification | Mortgage |
---|---|
Collateral Setting |
Mortgage setting ‘Class B’ on the registry |
Preservation of Collateral Value |
Managed and preserved by a financing institution |
Collection Method |
Simplified/Short-term Public sales on the open market Impossible to sell the collateral real estate at high prices |
Category of the Real Estate Divisible for Distribution amongst Creditors |
Excluded from the category |
Request for Subordinated Rights for New Lease |
Impossible to exclude |
Required Fees |
Registration/Local education tax: 0.24% of the maximum credit amount National Housing Fund bonds: 1% of the aximum credit amount A need to set superficies |
Successful sales are guaranteed by
minimizing the burdens of business
operators and strengthening the
rights of developers.
Real estate-related tasks are
promptly and accurately handled based on
expertise and trust by providing
project management services.