“Real estate ‘fandomization’ possible with STO…”Refer to the case of Japan”

Seminar co-hosted by the Korea Research Institute for Human Settlements and Hashid Open Research
Min Geo-hong, a researcher at HOR, said, “We need to legislate STO quickly.”
“Day, 100 billion won worth of real estate is also tokenized…Large companies are also entering the market.”

This article has been translated into English through AI.

[E-Daily Marketin Reporter Kim Yeon-seo] “In order for the real estate token securities market to be large, the type of underlying assets must be expanded through rapid legislation. If non-monetary benefits and blockchain-based transparent governance are provided for tokenized buildings, we can even pursue ‘fandomization of real estate’.”

Min Geo-hong, a researcher at Hashed Open Research, stressed the need for rapid STO legislation at the “Seminar on the Realization of a Shared Economy and Popularization of Real Estate Ownership through Real Estate Token Securities” held at the Hashed headquarters in Gangnam-gu, Seoul on the 9th. It is pointed out that the types and sizes of real estate token securities that can be invested in the future can be more diverse only when legislation is preemptively implemented.

Researcher Min explained that compared to Korea, Japan has a well-equipped system related to real estate token securities, and the types and sizes of tokenized real estate are more diversified. In fact, in the token securities market in Japan, various types of real estate such as residential apartments, inns, hotels, and outlets are tokenized in addition to office and logistics facilities. In addition, unlike Korea, where the market is mainly made up of small and medium-sized real estate, Japan is trading up to 100 billion won worth of real estate as tokens.

As examples of Japanese real estate token securities, △NAS outlet mall (97.8 billion won), △ River City 21 East Tower 2 (114.6 billion won), △ Kusatsu Hot Springs Ryokan (17.9 billion won), △ Investment Mansion Loan Bonds (860 million won) were introduced. Researcher Min explained, “Recently, Japanese general companies such as Mitsui Products are also entering the token securities market. There are also large token securities offerings of 100 billion won or public offerings of residential facilities.”

On the other hand, Korea pointed out that there are many restrictions related to real estate token securities as it has not yet been legislated. △foreign real estate △development stage real estate △ If one token securities consists of multiple real estate, this includes residential housing linked to △ real estate policy (LTV, DSR). Researcher Min emphasized, “According to the basic asset guidelines for trust beneficiary securities, there are cases where it is difficult to allow among the underlying assets of real estate token securities.”

Researcher Min said, “Real estate token securities are likely to solve the limitations of existing real estate investment products.” Existing real estate indirect investment products have restrictions, such as intermediate redemption or individual real estate selection. On the other hand, real estate token securities can provide non-monetary benefits while taking advantage of existing real estate indirect investment products.

Finally, he suggested, “Although Korean real estate token securities companies also need to make various types of tokens, there are difficulties due to current institutional limitations. It is necessary to quickly legislate and allow borrowing and investment types at the level of indirect investment in existing real estate such as REITs.” He added, “The advantage of real estate token securities is that they can invest in individual real estate projects,” adding, “Investors will be able to go beyond simply pursuing financial profits to “fandomize” buildings subject to tokenization.”