Currently, domestic PEFs are restricted to having 49 or fewer investors, limiting their capability to attract investment funds. If adopted, the number is expected to increase to up to 100.
“We are preparing measures to lure the funds excessively invested in the property market into the capital market,” a DP official said. ‘A set of deregulation measures will be targeted at revitalizing the capital market.”
In September, the government announced that it will impose tougher taxes on the owners of high-value houses and multiple homes, and increase the housing supply as home prices posted the fastest growth in a decade.
Other measures to rev up the capital market include easing regulation on the stake ownership of PEFs, officials added.
Currently, local PEFs are required to buy more than 10 percent of a big company if they seek to engage in the firm’s management.
By Song Seung-hyun and newswires (email@example.com)