[비즈한국] The real estate fractional investment company Funble has declared bankruptcy. As a first-generation fractional investment firm, Funble entered the market as a pioneer, but failing to cross the threshold into the regulated institutional fold has effectively forced it out of the market. With other early pioneers of the real estate fractional investment market also exiting one after another, critics are calling the financial authorities' recent improvements to the sandbox system a "belated measure."
On July 3, the 16th Division of the Seoul Rehabilitation Court declared Funble bankrupt. The deadline for filing claims is July 20, and the creditors' meeting has been set for August 13. Funble, which operated a real estate fractional investment platform of the same name, has entered the bankruptcy process just two months after terminating its services.
Funble was a first-generation real estate fractional investment firm launched in 2019 under the company name Fundblock Global. It was founded by CEO Cho Chan-sik, who previously worked at Honors Asset Management, Macquarie Investment Management, and Hana Daetoo Securities (now Hana Securities). In May 2021, Funble was designated as an "Innovative Financial Service" by the Financial Services Commission, and in May of the following year, it launched its real estate beneficiary certificate trading platform with the slogan, "A world where everyone can become a building owner with the price of a cup of coffee." Investors were able to invest as little as 5,000 won in commercial real estate to receive monthly rental income and profit from capital gains when the assets were sold.
Funble started successfully in August 2022, closing its first public offering for Lotte World Tower Signiel No. 1 early, just two days after opening. It subsequently conducted public offerings for Haeundae LCT, Hyundai Terra Tower DMC No. 1, and The Connoisseur Yeouido No. 1. In January 2024, it was acquired by the security solutions firm SGA Solutions, which took a 38.8% stake, making it an affiliate.
The problem was that despite the popularity of its offerings, the company could not turn a profit. Funble’s operating losses were 3.8 billion won in 2022, 2.2 billion won in 2023, and 2.1 billion won in 2024. To make matters worse, it failed to clear the hurdles during the process of entering the regulated institutional framework. In June 2025, Funble attempted to obtain a preliminary license for "beneficiary certificate investment brokerage"—a license that would allow it to issue, solicit, and underwrite beneficiary certificates—but it failed. This appears to be because it did not meet the minimum equity capital requirement of 1 billion won.
Funble ended its services on May 14, following its last beneficiary certificate transaction on April 30. In a notice issued under the name of CEO Cho Chan-sik, the company explained, "We have grown with the trust of our investors during our designation as an innovative financial service," but added, "However, as we failed to meet the institutional requirements, we have unavoidably terminated our platform operations."
Following the termination of its platform services, Funble is proceeding with a public competitive bidding (auction) process for its remaining trust real estate. Once the sale proceeds are finalized, they will be distributed to the investors, and the beneficiary certificates for the assets will then be cancelled. In fact, an auction notice for one of Funble’s remaining properties, Haeundae LCT, was posted on Onbid on the 3rd. Investor proceeds and deposits are held in accounts at SK Securities, the account management institution.
Funble is not the only company to face difficulties. Many real estate fractional investment firms that entered the market early have either failed to survive or failed to enter the regulated institutional fold. Kasa Korea, which started as the first real estate fractional investment platform in Korea, was acquired by Daishin Securities in 2023, but its operating losses actually widened to 5.8 billion won in 2024 and 6.1 billion won in 2025. Ultimately, Kasa Korea is also winding down its business by halting new public offerings and selling off its properties one by one.
Lucent Block, which was founded in 2018 and operates the real estate fractional investment platform "Sowoo," is in a similar situation to Funble. Lucent Block applied for a preliminary license to operate an over-the-counter fractional investment exchange (distribution platform) in September 2025 but was rejected. During the preliminary review process, Lucent Block raised allegations of unfair screening and technology theft, but it ultimately failed to receive the license. Lucent Block has recently acquired social venture certification and is preparing to challenge the fractional investment distribution market once again.
Meanwhile, in June, the financial authorities announced plans to improve the financial regulatory sandbox system, introducing a provision to grant exclusive operating rights (monopoly for a certain period) from the moment a service is designated as an innovative financial service. Previously, exclusive operating rights for up to two years could only be granted after the innovative service designation period ended and the company received official licensing. Citing cases like Funble and Lucent Block, industry insiders have criticized the move as a "belated measure."