Seoul City Launches Pilot Project for 'Public Land Fractional Real Estate Investment'

Seoul City has selected public land as a target site for a fractional real estate investment (STO) pilot project in which citizens participate.

On the 1st (Korea time), according to industry sources, Seoul City said it will carry out an STO pilot project targeting one to two public sites that have no demand for public facilities or have low utilization. The plan is to naturally induce 'citizen-participation co-development,' which intends to have citizens directly invest in regional development to increase community participation and enhance the value of public assets.

STO is an investment method called tokenized securities, in which a specific product is securitized into revenue securities and multiple investors own the product in distributed shares with small investments.

The sites currently being considered as candidates include △ Sangdo-dong Sangdo 5 Public Safety Center in Dongjak-gu △ Sinsa-dong Sinsa 1 Public Safety Center in Eunpyeong-gu, etc. Projects such as urban mini-storage facilities will be promoted in those spaces.

Seoul City plans to prepare a detailed project plan within the year to implement the STO pilot project and, after preliminary procedures, enter into a public offering of real estate tokenized securities in the first half of next year. Depending on the results of the pilot project, it plans to expand the application of STO to other sites in the future.

Earlier, Seoul City signed a memorandum of understanding with Lucentblock, the operator of the real estate revenue securities distribution platform 'Soyu', for the pilot project.