INTERVIEW Koramco bets on sector expertise, downside risk management

Cheong Seang-hoi, CEO and president of Koramco REITs Management and Trust / Courtesy of Koramco REITs Management and Trust

By Jun Ji-hye

• Published Jul 22, 2026 12:00 PM KST
• Updated Jul 22, 2026 6:28 PM KST

CEO sets sights on becoming trusted property investment platform for global investors

Asset managers’ ability to source, structure and manage investments has become increasingly critical amid high interest rates and a prolonged property market correction, which have heightened uncertainty across Korea’s real estate investment industry.

Cheong Seang-hoi, CEO and president of Koramco REITs Management and Trust, described the current market environment not simply as a downturn, but as a proving ground for asset managers.

In a recent interview with The Korea Times, he said Koramco views the ongoing market correction as both a crisis and an opportunity, adding that the company is focusing not on one-off deals or short-term gains, but on a structural overhaul of its operating model to navigate the uncertainty.

“When markets are strong, differences in performance among asset managers are less noticeable. But when markets become volatile, outcomes depend on which assets they choose, how they structure investments and how effectively they manage them after acquisition,” he said.

“Interest rates remain elevated, liquidity has dried up and assets are being repriced. In such an environment, what matters most is creating transparent investment structures and delivering sustainable returns for investors.”

Since taking the helm in March last year, Cheong has centered Koramco’s strategy on sector specialization and systematic management.

The goal is to move away from a model dependent on individual dealmakers toward one that integrates investment, asset management and fundraising under a standardized operating framework.

Cheong said investors are placing greater emphasis on sector expertise, downside risk management and the ability to deliver consistent returns, rather than simply judging managers by assets under management or transaction volumes.

“Competitive advantage increasingly depends on an organization’s ability to make disciplined investment decisions and execute them through systematic processes,” he said.

As part of the strategy, Koramco has separated its investment, asset management and fundraising functions, while strengthening sector-specific expertise across offices, logistics centers, data centers, residential properties and other new-economy assets.

Although the firm has established a strong position in the REIT market, Cheong said its long-term objective is to build a more balanced real estate investment platform spanning REITs, private real estate funds and trusts.

Cheong said building a strong investment firm requires more than hiring talented people. Instead, firms need systems that enable professionals to make better investment decisions by automating routine tasks and allowing them to focus on higher-value work, such as investment decisions, risk management and investor relations, he said.

The strategy has translated into tangible results. According to Koramco, about a year after Cheong took office, the company surpassed the Korea Land and Housing Corp. (LH) to rank No. 1 in Korea’s REIT market share.

Industry observers view this as significant because a private real estate finance firm overtook the entity that has operated policy REITs backed by government funds.

“In the past, it was unimaginable for a private company to compete on equal footing with a government-funded institution,” Cheong said. “The latest outcome reflects the market’s recognition of the REIT management capabilities and investor trust we have accumulated as a private real estate finance firm. We did not simply expand our scale. We built a system that allows each sector and function to operate with greater precision.”

Koramco has recently pursued a range of investments, including a prime office development near Gangnam Station, dubbed the “L Project,” and the remodeling of Etevers Tower near Sungnye Gate (also known as Namdaemun).

It also secured about 1 trillion won ($680 million) in investment capacity after being selected to manage 500 billion won blind funds each for the Government Employees Pension Service and Korea Post.

In its listed REITs division, Koramco Life Infra REIT is seeking asset monetization based on properties owned by Hyundai Motor Group, while Koramco The One REIT has completed the sale of the Hana Securities Building in Yeouido.

Cheong said recent transactions reflect Koramco’s focus on designing customized capital solutions for investors, sellers and tenants, rather than simply acquiring and disposing of assets.

“Our competitive edge comes from our ability to structure investments and integrate expertise across different functions,” he said.

Koramco is also broadening its investment scope beyond traditional office and logistics assets, targeting growth areas including data centers and mixed-use developments.

Cheong said data centers should be viewed as digital infrastructure investments rather than conventional real estate projects. He also noted that future real estate opportunities increasingly extend into new-economy sectors such as senior housing.

These assets require expertise spanning energy, operations, technology and long-term demand trends, he said, adding that Koramco’s advantage lies in connecting investment, development, asset management and fundraising through a single platform.

Cheong’s next focus is expanding Koramco’s role as a trusted gateway for global investors entering Korea’s real estate and infrastructure markets.

While Korea offers attractive investment opportunities, he said foreign investors often need local partners that can navigate regulatory requirements, market structures, tenant demand and exit strategies.

Koramco believes its track record managing capital for domestic institutional investors, including pension funds and mutual aid associations, will help strengthen its appeal as a partner for overseas investors.

The company aims to reach 100 trillion won in assets under management by 2030, but Cheong said the goal is not simply to grow bigger. He said sustainable expansion depends on maintaining investment quality and building a platform that earns long-term investor trust.

Cheong said the company also plans to avoid competing on size alone in overseas markets, adding that Koramco’s priority is to become a manager that investors choose repeatedly rather than the largest player in the market.

“Our priority is to protect investors’ capital and deliver sustainable returns, regardless of whether they are domestic pension funds, mutual aid associations, listed REIT shareholders or overseas institutional investors,” he said.

“Koramco’s long-term ambition is to become a real estate investment platform trusted by both domestic and global investors, with fundraising, investment and asset management functions working together to create value for clients.”