Korea Infographic - Korea In & Out 2024

Inbound

 

Foreign capital inflows into the Korean commercial real estate market totaled US$2.8 billion in 2024. This represented an increase of approximately 23% y-o-y and marked the largest full-year total since 2019's US$2.5 billion. Inbound investment has now recovered to pre-pandemic levels.

 

The surge in inbound investment witnessed in 2024 was primarily fueled by activity in the office and logistics sectors, coupled with a significant increase in hotel investment. By sector, offices attracted US$1.25 billion (45%); logistics US$920 million (33%); and hotels US$510 million (18%) of overseas capital. 

 

North American capital accounted for 54% of total foreign investment in the Korean commercial real estate market in 2024, surpassing the volume of Asian investment for a second consecutive year. Purchasing by U.S. investors was observed across all sectors, led by office, retail, logistics, hotel and residential. Highlights included Nuveen's acquisition of Jeongdong Building; LaSalle Investment Management’s purchase of Anseong Daedeok Logistics Center; and KKR's investment in The State Sunyu Hotel for co-living conversion.

 

Outbound

 

Korean outbound investment has fallen in the years since the pandemic, with 2024 witnessing a continuation of the trend. The ongoing decline has been due to the poor performance of existing investments along with increased exchange rate volatility stemming from heightened geopolitical risk. Korean outbound investment dropped to a record low US$380 million in 2024, marking a 48% decrease from the previous year.

Amidst an overall decline in Korean outbound investment, 2024 saw a shift in investment patterns as investors moved away from their previous concentration on specific sectors towards a more diversified approach encompassing office, logistics, retail, and residential properties.

Korean outbound investment in Asia reached US$240 million in 2024, representing 62% of total outbound investment volume, a slight recovery from the previous year's US$160 million. Investment was primarily focused on the Australian logistics sector and Japanese residential and office sector. This selective investment approach focused on proven well-performing markets and sectors is expected to continue for the foreseeable future.