After a successful showing in mutual funds and securitization, South Korean officials are pursing a new avenue of investment, the Real Estate Investment Trust. "We expect REIT legislation to be passed late this year," said Kyu Jin Kim, asset backed securities team head, Structured Products Dept., Daewoo Securities, Seoul, South Korea, adding that the late passage will allow for almost a full year to prepare before a deal is closed. Interest in REITs was inspired by the country's success in asset management with mutual funds that were initiated in 1998 and followed by securitization legislation in 1999. That legislation, instituted to absorb properties offered by troubled bankers, led to a mortgage-backed securities market with an inaugural transaction by Daewoo Securities in late March 2000. In addition to needing a property and capital market line to prepare for the North Korean market, creating a REIT market is a natural expansion in its securities market, according to Kim.       In addition to needing a property and capital market line to prepare for the North Korean market, creating a REIT market is a natural expansion in Korea's securities market.       Leading the Korean REIT market is Korea Land, a government entity that develops lands and sells to land users by installments, the Minister of Construction and former president of KoLand, Y. K. Kim, KoLand subsidiary Korea Real Estate Investment Trust Co., Korea Asset Management Corp., Korea Deposit Insurance Corp, and life insurers such as Samsung and Koyobo. There are two types of REIT entities that are possible in Korea: corporate or bank trust. Since the corporate type was in last year's unfinished REIT legislation it is likely to appear in the final law. However, one Korean bank is developing a REIT trust which would receive and manage cash in property related investments that, once approved by the Financial Supervisory Board, could be sold to the public prior to the passage of REIT legislation, according to Kim. One of the more serious obstacles in moving REIT legislation forward is the country's lack of transparency in its property market. "Coordination between the Minister of Finance, Construction and the Financial Supervisory Commissioner, Tax office will not be easy," said Kim. But, he added, since securitization conduits and mutual funds acquired tax exempt status, it is likely that REITs will also be granted the same status. "Those problems are fundamental and will take a long time [to resolve]," he noted. In the past, real estate in the small mountainous country has been owned by few. Instituting REIT legislation may change that. "With REITs," said Kim, "Everybody can join the party."