Korea Infographic - Korea In & Out 2023

Inbound Investment

In 2023, foreign capital inflows into the Korea commercial real estate investment market grew by 23% y-o-y US$2.3 billion; an improvement from the US$1.9 billion average registered in the three years from 2020-2022 when pandemic-related restrictions constrained cross-border investment activity.

The U.S. and Singapore remained the top two sources of inbound capital, accounting for 43% and 28% of investment, respectively. Canada rounded out the top three.

Inbound investment volume surpassed outbound investment for the first time since records began. This was partly due to the large quantum of foreign investment in the logistics sector, which reached a record-high US$1.6 billion, pushing up overall investment volume.

Outbound Investment

While outbound activity by Korean investors had already been in decline since the onset of the pandemic, total overseas investment volume fell by 86% y-o-y to just US$700 million in 2023, the lowest level on record. 

Domestic outbound investment was largely limited to purchases in the U.S., which has consistently remained Korean investors’ preferred destination. 

The office sector accounted for about half of all outbound investment volume in 2023, with all acquisitions taking place in the U.S. Investment in major European countries such as the UK, France, and Belgium, which have historically attracted the majority of office investment volume, was absent in 2023 as investors focused on default protection and refinancing of current holdings amid concerns about distressed investment.