Brief

Korea Infographic - Korea In & Out 2021

25 May 2022

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Korea-In-and-Out-EN

Inbound Investment

  • Foreign investment in Korean commercial real estate reached US$1.9 billion in 2021, an increase of 2.0% y-o-y from 2020. 43% of foreign investment volume was accounted for by Hong Kong SAR-based capital, underpinned by Kendall Square’s acquisition of several logistics assets.

  • Foreign investors’ demand for domestic logistics assets increased significantly during 2021, with this asset class accounting for 59% of total inbound investment volume. Pandemic-driven expansion by the e-commerce industry underpinned strong demand for logistics assets over the year, particularly from buyers in Hong Kong SAR, Singapore, and the U.S..

  • U.S. and European investors primarily focused on office and logistics properties in 2021, while 76% of investment from Asia Pacific buyers was directed into logistics assets.

 

Outbound Investment

  • Korean outbound investment totalled US$6.5 billion in 2021, an increase of 3.0% y-o-y from 2020 but still below pre-pandemic levels. Demand for U.S. real estate remained upbeat, with around US$4.2 billion of Korean capital following into this market, accounting for 65% of total outbound investment volume.

  • Office properties attracted US$4.3 billion-worth of Korean outbound investment in 2021, an increase of 10-pp from last year, ensuring this asset class accounted for 65% of the total.

  • Korean investment in the U.S. has steadily increased since the onset of the COVID-19 pandemic, while Europe’s proportion fell to just 16% last year as investment was impacted by the pandemic.

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