Innovating the Korean Real Estate Industry Means Getting the Best Outcomes for All Stakeholders
Jooch Nam is the Director of Sales and Partnerships at Dongnae, a real estate firm that is innovating the way in which the industry operates. He and Alex Jensen discuss the industry and the innovations that Dongnae is bringing.
With regards to helping expats new to Korea Jooch says, “We offer a full service from moving in to moving out. We kind of hold your hand, especially if you’re from overseas. It’s concierge system rather than a brokerage because really not to be don’t take any brokerage fee. Instead, we offer the support that you need with a very low deposit.”
But for Koreans as well looking to escape the wolsae trap, Dongnae provides its FLEX solution. As Jooch says, “What we do is we rent out a premium apartment, turn it around and we sublease it to tenants. We drop the key money required to something affordable for people in your 20s and 30s, we try to keep the monthly rent reasonable as well, somewhere between two and four million won, depending on the location. In this way people can start to save a deposit for their own place while living in a nice apartment.
This solution and others have been recently covered in the media including a recent article in techcrunch.
The Dongnae strategy is resonating not only with tenants, but with all stakeholders. This is evidenced in the support from a wide range of investors the firm attracted in its recent Series A fund raising. Dongnae raised 20 billion won in equity and loans from a group of investors including: NFX, Daol Investment, Hana-Magna, Hana Financial, MetaProp, Fursys, Han River Partners, Flybridge and Maple as well as WeWork co-founder Miguel McKelvey.
This episode is brought to you by Eastpoint Partners. Offering you and unparalleled Asia-wide network connecting you with corporates, governments and investors.