Incheon Urban Corporation, First Local Corporation to Receive Preliminary Approval for Asset Management Company License

[Asia Economy Reporter Park Hyesook] Incheon Urban Corporation (iH Corporation) announced on the 19th that it has received preliminary approval for an Asset Management Company (AMC) license under the Real Estate Investment Company Act from the Ministry of Land, Infrastructure and Transport.

An Asset Management Company is a firm entrusted with managing the assets of a Real Estate Investment Trust (REIT). It handles the entire process on behalf of the nominal REIT company, including selecting investment targets, establishing and obtaining business approval for the REIT, raising funds, purchasing, managing, disposing of, and liquidating real estate assets.

To perform asset management duties, iH Corporation applied for preliminary AMC approval from the Ministry of Land last December and created an AMC Business Division during its organizational restructuring in January this year to support smooth licensing procedures and promote new REIT projects.

Subsequently, after reviews by related agencies such as the Financial Services Commission and Korea Real Estate Board, the Ministry of Land notified iH Corporation of the preliminary approval.

Through the AMC dual-license, iH Corporation plans to activate public policy projects such as rental housing and urban regeneration projects. This is expected to realize citizens' housing welfare and contribute to balanced urban development, including revitalizing old downtown areas.

Once the Ministry of Land completes on-site inspections and grants final approval, iH Corporation will become the first local public corporation to receive an AMC dual-license. It is expected to grow into a specialized asset management institution utilizing real estate finance by promoting public and private rental housing REITs, land compensation REITs, and urban regeneration REIT projects.

Lee Seungwoo, President of iH Corporation, stated, "Until now, government debt management for local public enterprises limited the pursuit of new profit or policy projects, but with this AMC dual-license, the corporation can minimize its own financing burden and establish a foundation for public REIT projects utilizing funds such as those from the Housing and Urban Guarantee Corporation (HUG)." He added, "We expect to actively realize policies such as urban regeneration and housing welfare, as well as improve the corporation’s financial structure."

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