This document gives characteristics of Korean REITs and their economic impacts. REITs were introduced in 2001 in Korea, in order to stimulate the restructuring of the economy and revitalize the real estate market after the crisis of 1997. In this study, the main frameworks of Korean REITs are presented, firstly. Secondly, the characteristics of the Korean REITs system are analyzed, and compared with the case of the U.S. are used. Thirdly, we analyze the current state and future prospects of Korean REITs. Finally, their impacts on Korean real estate and financial markets are analyzed. After the foreign exchange crisis at the end of 1997, discussions about the introduction of REITs(Real Estate Investment Trusts) are raised actively, in order to stimulate the restructuring of corporate and financial institutions and revitalize the real estate market in Korea. Since REITs can securitize real estates and distribute them to the general public, they were expected to promote the disposal of real estate for restructuring. Especially, REITs can divide real estates into small units and give them liquidity through listing, thus, it provides opportunity for small investors to invest in real estate.