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. Korean REITs were firstly introduced in April 2001, through the legislation of the real estate investment company act’. Later, corporate restructuring REITs (CR-REITs), in order to invest in the real estate owned by corporate and financial institutions which need restructuring, were introduced in May 2001, through the revision of the real estate investment company act. The main purpose of introduction of CR-REITs was stimulating the restructuring of corporate and financial institutions.