The REITs(Real Estate Investment Trusts) has been introduced into Korea since 2001 in order to stimulate the corporate restructuring and establish the transparency of real state transaction after the IMF foreign exchange crisis. But Korean REITs market is not active up to present. So, government amended the REITs Act on September 2004. A lot of institutional improvement has been made through the amendment of REIT Act. Under the amended REITs Act, the externally managed REITs which is general REITs is classified as the paper company and treated as the entity that is endowed with the tax benefits and the establishment of REITs has become relatively easier than before due to the reduction of minimum capital required for the establishment of REITs. But REITs market in Korea is at the stage of inception and there are a lot of problems to be resolved for the activation of REITs market. This study analyzed the factors why Korean REITs market is not active and suggested certain solution for the improvement. Those proposal includes the building up of information infrastructure for the real estate market, enhancement of investment return, and bringing up of real estate management experts etc.