South Korea’s financial regulators tentatively approved three new real estate trust operators on Sunday, enabling new players to join the business segment for the first time in 10 years.

The Financial Services Commission granted preliminary licenses to three new companies in the works: Shinyoung Asset Trust, Korea Investment and Securities Real Estate Trust and Daishin Asset Trust.

Shinyoung Asset Trust is a company being formed by Shinyoung Securities in partnership with Eugene Investment and Securities. Korea Investment and Securities Real Estate Trust is being created by Korea Investment Holdings, while Daishin Asset Trust is being established by Daishin Securities. 

The FSC said the three companies had passed its evaluation with the highest marks. A total of 12 companies had applied, according to the regulator.

With their preliminary licenses in hand, the three newly approved real estate trust operators can begin procedures to set up their businesses. They will have to apply for formal licenses within the next six months.

This is the first time since 2009 that the FSC has granted approval for new players to join the local real estate trust business. There are currently 11 real estate trust operators in Korea.

By Sohn Ji-young (jys@heraldcorp.com)