• Recent years have seen an increasing number of Korean investors look offshore in search of geographic and sector diversification and a wider choice of potential acquisitions amid an intensely competitive domestic marketplace and compressing yields.

 

  • However, the COVID-19 pandemic has led to a sharp decline in Korean outbound investment in H1 2020 as lockdown measures and/or travel restrictions inhibited deal completion. The resulting global economic slowdown has prompted many Korean buyers to adopt a more cautious stance towards certain sectors, further reducing the flow of transactions.

 

  • Nevertheless, Korean investors retain a long-term strategic focus on global real estate investment, with many buyers continuing to pursue opportunities abroad.

 

  • This ViewPoint explains recent patterns in Korean outbound investment and identifies future purchasing trends expected to emerge from the current market dislocation.