South Korea's insurers hold largest share of overseas real estate investments

Written by Adam Cadle

13/01/2025

South Korea’s financial companies had an outstanding balance of KRW56.3trn in overseas real estate investment as of end-June 2024, down KRW0.7trn from three months earlier, figures published by the Financial Supervisory Service have revealed.

By sector, insurance companies’ investments came in at KRW31.2trn at the end of June 2024, holding the largest share of 55.3%.

By region, the majority of investment went to North America representing 62.5%. Investments in Europe accounted for 18.6%, and Asia held 7%.

The FSS said it will monitor and improve the financial companies’ alternative investment-related process in a consistent manner in order for them to have sound investment practices in place.

Furthermore, it will encourage the companies to implement loss recognition measures and strengthen their loss-absorbing capacity as well as closely monitor the status of the properties in question. Also, the FSS will continue to reinforce its overseas property database and operate a swift report system in a bid to advance the risk response system.

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