Koramco Asset Trust and its subsidiary Koramco Asset Management announced on the 7th that they will reorganize their organizations to clearly separate the roles of investment and management and to enhance investor accessibility.
The reorganization follows last month's restructuring into separate representative systems for the REITs, funds, and real estate trust divisions. It is part of the 'ONE KORAMCO' strategy, which aims to maximize the connectivity and efficiency of tasks while enhancing expertise within each organization.
The REITs division of Koramco Asset Trust simplified its structure by reorganizing from the previous REITs 1, 2, 3, and development divisions into the REIT Investment Division and Value Investment Division. Additionally, the team structure within the divisions was consolidated based on expertise, integrating overlapping teams into three functional groups: investment, funding, and asset management (AM). This approach aims to further specialize both physical investment and asset management.
The organization of Koramco Asset Management, the subsidiary responsible for real estate funds, also underwent significant changes. In addition to the existing domestic, overseas, and securities divisions, a Strategic Investment Division was newly established to drive strategic asset investment and expand the REIT business.
Each headquarters' tasks were specialized based on expertise. The names of the headquarters were clearly distinguished as Physical Investment, Development Investment, Structured Investment, Future Growth Investment, Corporate Investment, and Multi-Asset. Furthermore, the middle office, which serves as an intermediary between sales and management organizations, was reinforced to actively support sales. The middle office consists of the R&S Office (Research & Strategy), which systematizes market analysis and investment strategies; the Capital Markets Office, which attracts overseas investment funds; the Investment Funding Office, which recruits domestic small- and medium-sized investors; and the Technical Support Office, which provides on-site support for development projects.
Through the middle office, Koramco Asset Management plans to provide systematic investment support and significantly strengthen organizational expertise, elevating its status as a specialized real estate asset manager and offering differentiated services from competitors.
The overall management organization will also be strengthened. Previously separate departments such as the Technology Office, Legal Office, Talent Development Office, and ESG Strategy Team will be integrated into the management division to systematically support sales. Koramco is recognized in the industry for having an efficient management organization. Along with this, it has received favorable evaluations for its high compliance standards and fiduciary duties. The company decided on a rigorous reorganization of the management support organization to expand its global business.
Koramco forecasted a "gradual recovery" in the commercial real estate market this year despite external uncertainties. The key interest rate cuts by major countries including the United States have begun in earnest, and global economic conditions have passed the bottom. Koramco plans to respond swiftly to new investment demands and enhance the value of its assets through this reorganization, thereby further strengthening its dominance in the real estate investment industry.
Seunghoe Jeong, CEO of Koramco Asset Trust, stated, "Although the domestic and international investment environments remain uncertain, Koramco is an investment platform that delivers results for investors under any circumstances," and added, "The more difficult the situation, the more we will solidify our fundamentals and achieve qualitative growth to once again prove the leading position of ‘ONE KORAMCO’ in the real estate investment market."
Founded in 2001, Koramco Asset Trust is the leading operator in the domestic private REITs market with about a 20% market share. Alongside real estate trust services, it also operates a real estate fund business through its subsidiary Koramco Asset Management. Lifestyle culture company LF is the major shareholder, with key domestic financial institutions such as Kiwoom Securities, Woori Bank, Korea Development Bank, and Shinhan Bank also listed as major shareholders.
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