With its steady growth and relatively stable market, the land down under has a well-established domestic real estate sector, and is increasingly drawing overseas players, particularly from Asia. But supply constraints and pricing are starting to make market entry difficult and may force some foreign investors to get creative with their purchases and take on additional risk.

According to the latest investment intentions survey from INREV, the European Association for Investors in Non-listed Real Estate, access to expert management is the main reason for investing in unlisted real estate, as it was five years ago. Risk appetite varies over time, but the need for high-quality investment management remains constant. Those fund managers with a solid record of outperformance will, more often than not, have built it on the bedrock of a consistent investment philosophy.

This article describes the applicable exemptions that a fund sponsor of a closed-end private equity real estate fund can expect to rely on in South Korea. The marketing and sale of interests in private investment funds to residents of South Korea are subject to regulation under the Financial Investment Services and Capital Markets Act (FSCMA), which replaced the previous Indirect Investment Asset Management Business Act (IIAMBA) as of 4 February 2009.