South Korea's construction output slumps to its lowest point in the last 26 years during the first quarter.
2025: A Shift in Korean Investment Habits - Overseas Real Estate on the Rise
In the bustling city of Seoul, workers toil away at an apartment building construction site on April 30, 2025. While the scenes of construction are familiar, the motivations behind them have shifted significantly (NEWS1).
The Allure of Foreign Shores
Gone are the days when Koreans flocked to invest in their local real estate market. Today, the overseas market sparkles with promise, drawing wealthier Koreans like moths to a flame (1). While the domestic market continues to show a mixed performance, many are opting for safer bets such as savings deposits, gold, bonds, and virtual assets, due to concerns about the sluggish economy (1).
As investment in domestic real estate wanes, it ranks a dismal eighth out of twelve investment categories among high-net-worth individuals - a clear sign of reduced interest in local property investments (1).
Fear of an Economic Storm
The specter of an oncoming economic recession hangs heavy over South Korea, and many of its wealthiest citizens believe the domestic economy will take a turn for the worse. With this fear looming large, it's no wonder that investors are seeking more stable international markets (1). A "recession-type" investment strategy has become popular, focusing more on stability than returns (1).
** Global Opportunities Abound**
Cross-border real estate investment in the Asia-Pacific region, including South Korea, is on the rise, with a surge in commercial properties like offices and industrial assets (3). The global market promises resilience and long-term growth, enticing Korean investors looking for returns more promising than those available domestically (3).
Diversification for Survival
To weather the financial storm that seems to be brewing in South Korea, wealthy Koreans are taking a leaf out of the ancient wisdom of diversification. They're investing in foreign stocks and assets, perceived as either safer or more promising than domestic real estate (1, 2).
As the domestic economy falters, the allure of international real estate grows stronger. The twin forces of economic stagnation at home and the promise of riches abroad have set the stage for a shift in Korean investment habits. The once familiar sight of Seoul's construction sites may be a subtle reminder of a nation turning its gaze away from the familiar and towards the lure of foreign shores (NEWS1).
- Wealthier Koreans are increasingly opting for the overseas market due to concerns about the sluggish economy, with overseas real estate ranking as the eighth out of twelve investment categories among high-net-worth individuals.
- With the specter of an oncoming economic recession in South Korea, investors are seeking more stable international markets, leading to a surge in commercial properties like offices and industrial assets in the Asia-Pacific region.
- To weather the financial storm that seems to be brewing in South Korea, wealthy Koreans are diversifying their investments by investing in foreign stocks and assets, perceived as either safer or more promising than domestic real estate.
