Published on and written by Cyril Jarnias
South Korea’s commercial real estate market is reaching a new scale. Between exploding transaction volumes, the green transformation of buildings, the growing power of REITs, and an influx of foreign capital, the market now offers a rare mix of depth, liquidity, and public support. For an investor, the question is no longer whether opportunities exist, but rather where to position, with which vehicle, and at what risk level.
A Solid, Transparent, and Increasingly Liquid Market
South Korea displays a relatively stable macroeconomic environment, with moderate growth, contained inflation, and a central bank engaged in a cycle of gradual easing. Real GDP grew by about 2% in 2024, and the Bank of Korea began lowering its key rate at the end of 2024, stabilizing it around 2.75% in spring 2025, with expectations of further cuts towards the 2.25–2.5% zone by the end of 2025.
Cumulative investment in South Korean commercial real estate had already surpassed this amount in trillions of KRW by Q3 2025.
This renewed activity is also marked by a significant return of foreign capital. Inbound investments in South Korean commercial real estate reached approximately $2.8 billion in 2024, a return to pre-Covid levels and an increase of over 20% year-on-year. Outbound flows, meanwhile, collapsed to $380 million, a sign that local investors are now finding more opportunities at home than abroad.
Sector Breakdown: Office Dominance, Rise of Logistics and Hotels
The South Korean market shows a strong concentration in offices, but appetite for logistics and hospitality has clearly gained ground.
| Segment | 2024 Volume (KRW) | Share of Total | Key 2025 Trends |
|---|---|---|---|
| Office | ≈ 13 Trillion | ≈ 60% | Lack of prime supply, rising rents, stable to low cap rates |
| Logistics | ≈ 5 Trillion | ≈ 23% | Strong supply correction, yield compression, outperformance of ‘core’ assets |
| Hotels | ≈ 2 Trillion | ≈ 9% | Massive tourist return, ADR increase, booming 5★ transactions |
| Retail | ≈ 2 Trillion | ≈ 9% | Recovery of prime streets, polarization by neighborhood and concept |
Offices remain the flagship asset, concentrating the majority of major transactions, but Grade A warehouses and luxury hotels are attracting more and more international institutional capital, often alongside local managers through joint ventures.
An Open but Highly Regulated Legal Framework
South Korea stands out in Asia for its relatively open regime for foreign investors, whether for direct asset acquisition or through collective vehicles.
Foreign Access to Commercial Property
Foreign individuals and legal entities can acquire real estate in South Korea, in principle under the same conditions as nationals. Three laws structure this framework:
– the Act on Report on Real Estate Transactions;
– the Foreign Investment Promotion Act;
– the Foreign Exchange Transactions Act.
The central obligation for a foreign investor is to file an acquisition report with the local administration (the competent Si/Gun/Gu office) within 60 days of signing the contract. It is therefore not a prior approval regime, but an ex-post reporting one, except for certain sensitive land (military zones, heritage sites, nature reserves, etc.) where a government permit is required.
Holding 10% or more of the voting rights in a company owning real estate in Korea may trigger a notification obligation under the Foreign Investment Promotion Act.
Procedures Based on Investor Profile
The steps differ depending on whether the investor is a resident or non‑resident, an individual or a company:
– Foreign residents (holder of a registration card or local branch of a foreign company): subject to the Act on Report on Real Estate Transactions and the Real Estate Registration Act.
– Non‑residents: additionally, the Foreign Exchange Transactions Act applies; a report to a foreign exchange bank is necessary when withdrawing acquisition funds, and a real estate registration number must be obtained from immigration or, failing that, through the Supreme Court.
– Foreign‑invested companies recognized under the Foreign Investment Promotion Act: investment notification and company registration with a foreign exchange bank or KOTRA before signing the acquisition contract.
– Foreign companies without a local entity: can acquire land for non‑profit uses; for leasing or any commercial activity, a subsidiary or local branch must be opened, otherwise risking tax reassessment (acquisition and registration taxes to be repaid if an audit discovers undeclared commercial use).
Acquisition and Holding Taxation
The tax structure is a key element of net yield. Several layers overlap:
| Type of Tax | Base / Indicative Rate |
|---|---|
| Acquisition Tax | 4.6% of price (includes registration tax). 9.4% in designated overcrowded areas |
| Stamp Duty | Up to KRW 350,000 per acquisition contract |
| Housing Bond Purchase Obligation | ≈ 5% of price, usually resold at a 10–15% discount |
| VAT on Commercial Property | 10% on the building (land is exempt) |
| Capital Gains Tax | Generally 10–30% depending on holding period |
| Annual Property Tax | 0.1–0.5% of value + 20% local education surtax |
| Comprehensive Real Estate Holding Tax | 0.5–5% above certain real estate wealth thresholds |
Interposed structures (companies holding real estate) are not exempt from real estate taxation: an investor who becomes a majority owner (>50%) of a real estate company is liable for a deemed acquisition tax (2.2% of the book value of the real estate), and the sale of shares bears a 0.35% securities transaction tax.
The applicable tax rate on rental income for foreign entities in France.
Investor Protection and Free Flow of Funds
The Foreign Investment Promotion Act establishes several protective principles:
– freedom of investment, except for restrictions motivated by national security, public health, environment, or public order;
– equal treatment between foreign and domestic investors, including for tax benefits;
– guarantee of free remittance abroad of investment proceeds (dividends, interest, sale proceeds), provided the initial funds were correctly declared.
The state may also concede or sell public land to foreign‑invested companies as part of investment projects, with reduced rents, long leases (up to 50 years, renewable), and the possibility of installment payments.
Tight Office Markets, Driving Performance
The main axis of commercial real estate investment remains the office market, dominated by Seoul and its three main business districts: CBD (historic center), Gangnam, and Yeouido. Together, they concentrate over half of the prime office stock and the majority of major domestic transactions.
A Cycle Driven by Lack of Prime Supply
The South Korean office market is worth about $27.3 billion in 2025 and is expected to reach $34.5 billion by 2030. Over the 2014–2023 decade, the average annual supply of prime space in Seoul (≈ 190,000 m²) remained below net demand (≈ 230,000 m²), gradually drying up vacancies.
Prime vacancy thus fell from just over 10% before 2020 to about 2% at the end of 2022. In 2024–2025, a slight easing is observed, but levels remain extremely low for such a deep market: about 2.7% vacancy for Grade A buildings in Q2 2025, and 3.1% in Q3, with even 1.5% in Gangnam.
Between 2023 and mid‑2025, net effective rents for prime offices in Seoul increased by 5 to 6% annually. The increase was 2.1% in Q2 2025, then 1% in Q3. Very high‑quality buildings on the most sought‑after arteries, like Teheran‑ro in Gangnam District, command a rental premium of up to 80% compared to non‑prime assets.
Demand Driven by Tech, Finance, and Services
The structure of demand fuels this premium for the best assets. The information technology and financial services sectors together represent nearly half of Grade A office absorption in Seoul (44% in 2024). Professional services (consulting, legal, audit) constitute the fastest‑growing end‑use segment, with an expected annual growth rate around 5.7% until 2030.
Recent moves illustrate the ‘flight to quality’ trend:
– Large technology and financial companies are migrating to new or renovated towers, often pre‑leased before delivery (e.g., Viva Republica, parent company of Toss Bank, in the OPUS 459 project in Gangnam);
– Others are rationalizing their space but upgrading in quality, sometimes leaving older prime buildings for newly certified assets, or downgrading to secondary assets when rents become too high.
Beyond the three historic districts, new hubs are emerging:
Three major strategic development projects are transforming Seoul neighborhoods into leading technological and economic hubs.
West of Seoul, transforming into a campus dedicated to R&D and offices for sectors like aerospace, construction, and life sciences. Projects driven by giants like Samsung C&T or LG.
South of the CBD, subject to the massive ‘Yongsan International Business District’ project. Designed as an ultra‑technological business and living district, driven by a public‑private partnership.
South of Gangnam, positioning itself as the ‘Korean Silicon Valley’ with strong technological content and the presence of numerous digital platforms and companies.
Yields and Trade‑offs for Investors
For an investor, the yield/risk profile of prime offices in Seoul has slightly compressed but remains competitive in a declining rate environment. Cap rates in the most sought‑after addresses are around 4%, compared to over 5% for less well‑located or lower‑quality buildings.
Recent major deals — sale of Pangyo Tech One Tower (≈ KRW 1.9 trillion), Asset Gangnam (KRW 1.1 trillion), or complexes like D‑Tower or Centropolis — show investors are willing to pay a premium for stable rental income streams, backed by prime tenants and near‑zero vacancy.
The challenge for a new entrant is twofold: access these highly coveted assets, often via local platforms (REITs, funds, joint ventures), or identify value‑add opportunities in well‑located but outdated buildings in need of modernization, particularly in terms of ESG.
Logistics: From an Over‑Supply Cycle to a Rare Entry Window
South Korean logistics, particularly the Grade A warehouse market in Greater Seoul, experienced a period of overheating followed by a sharp slowdown in supply, creating interesting entry conditions for long‑term investors today.
From Boom to the New “Normal”
After a peak in completions that pushed the overall logistics vacancy rate to about 23% in 2024, the pipeline literally collapsed. In the first half of 2025, new supply in Greater Seoul represents only about 0.53 million m², a drop of 73% year‑on‑year. In Q2 2025, only four Grade A centers were delivered, totaling 168,614 m² – the lowest quarterly volume since 2019.
Dozens of projects face structural delays: 172 sites (12.36 million m²) have been postponed by at least one year, with over 80% stuck in their third year of delay. Result: projected new space for 2026–2027 now represents only 5% of current stock.
At the same time, demand continues to grow, driven by:
The logistics real estate market is driven by three major forces: 3PL providers (46% of leased space), e‑commerce (national and international players occupying millions of m²), and cold chain, whose rental demand nearly tripled in Q3 2025.
Vacancy, Rents, and Yields: A Market Tightening
The logistics vacancy rate is already starting to decline. From 23% in 2024, it fell to 20.4% by mid‑2025 in Greater Seoul, with a forecast around 19% for all of 2025. Situations are highly contrasted, however:
– ‘Dry’ warehouses record significantly lower vacancy levels and could fall below 4% by 2027, especially in southern sub‑markets (Anseong, Icheon) where some assets maintain vacancy under 5%;
– Refrigerated warehouses remain more volatile, with a risk of persistently high vacancy (up to 30% in some sectors) but a rental and yield premium for well‑positioned assets.
Percentage increase in net effective rents for Grade A warehouses in Greater Seoul in Q2 2025.
Transactions and Players: The Return of Global Institutional Investors
The rebound in investor confidence is visible in the numbers. After a low in 2023, logistics transaction volumes are recovering: KRW 5 trillion in 2024, then a jump to KRW 1.3 trillion in Q1 2025, followed by a technical correction in Q2 (KRW 296.7 billion) due to a base effect, and an explosion to KRW 1.26 trillion in Q3.
Deals are largely dominated by ‘core’ assets secured by firm leases with e‑commerce players and 3PLs, often in the form of forward purchases or developer‑guaranteed disposals. Among the emblematic transactions are:
– the acquisition of the Hang‑dong Dream Logistics Center by a Koramco–GIC JV (KRW 230 billion);
– the purchase of the Gyeongsan logistics center occupied by Coupang by IGIS (KRW 155.8 billion);
– several operations by Blackstone, KKR via Kreate Asset Management, or Gravity Asset Management in partnership with GIC.
For foreign investors, this segment now offers a rare combination: demand visibility, a sharp contraction of future supply, and yields still higher than prime offices, in a country where logistics is a key link in one of the world’s largest e‑commerce economies.
Retail and Hospitality: Playing the Tourism and Consumption Card
While retail has suffered from the rise of online sales and volatile domestic demand, certain commercial streets and formats are clearly standing out, buoyed by the massive return of tourists. Hospitality, meanwhile, has entered a new bullish cycle.
Retail: Extreme Polarization, but Recovery of Tourist ‘High Streets’
In 2024, the South Korean retail market recorded its first negative growth since 2020, despite an overall turnover of KRW 509 trillion (+3.1% year‑on‑year). The major trends are clear:
– continuous growth of online sales (over 25% market share);
– strong growth of department stores (+8.4%);
– drop in duty‑free sales (‑20%), linked to tourist structure and consumption changes.
On the ground, vacancy and rent indicators, however, show a clear improvement on Seoul’s prime streets:
| Street / Neighborhood | Vacancy 2024 (approx.) | Vacancy Q2 2025 | Trends |
|---|---|---|---|
| Myeong‑dong | ≈ 6.8% | ≈ 7% | Lowest level since 2018, rising rents, explosion of cosmetics and fashion store openings |
| Gangnam | ≈ 20% | Significant decrease | Vacancy drop of over 5 points in Q3 2025, new tech and fashion flagships |
| Garosu‑gil | ≈ 39% | Still high | Highly polarized neighborhood, dependent on experiential concepts and international brands |
| Seongsu‑dong | Low | Low | Sustained demand, sharply rising rents, trendy destination for lifestyle, cafes, fashion |
The influx of tourists — over 7.2 million foreign visitors in the first half of 2025 alone, up 15% year‑on‑year — is revitalizing street‑level commerce, particularly in tourist and ‘medical tourism’ neighborhoods like Myeong‑dong or Gangnam. Credit card sales in Seoul’s six major commercial districts have thus returned to, or even surpassed, 2019 levels.
For an investor, South Korean retail is no longer a game of volume but of selection. It is advisable to bet on streets benefiting from a solid mix of local and tourist clientele, on locations at the foot of prime office buildings (notably in Magok, where some complexes exceed 90% pre‑leasing), or on mixed formats integrating dining, health, services, and experiences.
Hospitality: A Bullish Cycle Driven by Tourism and Supply Scarcity
The rebound is even clearer in hospitality. After a transaction volume limited to KRW 400 billion in 2023, sales of five‑star hotels jumped to KRW 1.8 trillion in 2024, more than four times higher. The market is driven by:
Medical tourism in South Korea attracted over 600,000 foreign patients in 2023, primarily for dermatology and cosmetic surgery.
Major global investors are not mistaken. In 2025, Goldman Sachs signed its first hotel acquisition in Korea with the Mercure Ambassador Hongdae (KRW 262 billion), while players like Shinhan Seobu T&D REIT repurchased the Shilla Stay Mapo. Other recent emblematic operations include the takeover of the Conrad Hotel by Japanese capital or the conversion of the Tmark Grand into Voco Myeong‑dong.
For an investor, the thesis is to capture the rise in ADR and RevPAR in prime locations, or to participate in redevelopment/repositioning operations of obsolete hotel assets towards more profitable concepts (lifestyle, long stay, senior residences, etc.).
ESG, Decarbonization, and ‘Green Premium’: A New Value Driver
Beyond classic economic fundamentals, one of the major opportunity axes in South Korea lies in the ESG transformation of the real estate stock. Buildings represent nearly 60% of the country’s carbon emissions, and pressure to decarbonize is intensifying.
A Policy Arsenal in Favor of Green Building
The government has deployed a series of policies aimed at massively greening the stock:
South Korea has established a comprehensive framework for the ecological transition of the real estate sector. The Green New Deal (2020) promotes digitalization and energy renovation. The country has a green building certification system (GBCC) since 2001, assessing land use, energy, water, and air quality. The ‘Green Building Activation’ plan aims for an 88.1% reduction in sector emissions by 2050. Seoul plans the renovation of 1,532 public buildings and the deployment of the Zero Energy Building standard. Tax incentives, like acquisition tax reductions, are linked to energy performance grade.
In parallel, Korea has established its own green taxonomy, the K‑Taxonomy, which defines economic activities contributing to national environmental objectives and now serves as a reference for financial institutions in ESG assessment.
Certifications and Green Premium
International certifications are multiplying on Korean commercial assets: LEED, BREEAM, WELL, but also local systems. Complexes like IFC Seoul in Yeouido or Namsan Square in the CBD have obtained LEED Gold labels, incorporating rainwater recovery, solar panels, highly insulating facades, and thermal storage systems.
This upgrade is not just about image: global data shows certified buildings sell and lease for more, with:
Nearly 40% of surveyed owners observe better resilience in the value of certified buildings.
In Seoul, the share of certified green prime office stock doubled between 2019 and 2023, from about 21% to 45%. Over 80% of major commercial users based in Korea state they want a 100% green‑certified portfolio by 2030, and over a third will, by that horizon, only consider working with landlords who sign green leases.
For an investor, this opens three types of strategies:
– acquire already high‑performing ESG assets to immediately benefit from higher rents and reduced vacancy risk;
– target well‑located but obsolete buildings, to transform them via green capex (insulation, HVAC systems, digital management, certifications) and capture significant rental repositioning;
– align with the ESG requirements of large pension funds and global asset managers, who increasingly condition their allocations to specific criteria (K‑Taxonomy, GRESB, SBTi, etc.).
REITs and Collective Vehicles: A Structured Entry Point to the Market
For investors who do not wish to directly hold real estate assets in South Korea, the market for collective vehicles, particularly REITs, has grown considerably in recent years.
Explosion of the REIT Market
Created in 2001, the Korean REIT market remained discreet for a long time before accelerating sharply from 2018, driven by a proactive public policy in favor of listed REITs. The numbers speak for themselves:
| Indicator | 2012 | 2020 | May 2025 |
|---|---|---|---|
| Total Number of REITs | 71 | 286 | 415 |
| Gross Assets of All REITs | KRW 9.5 Tn | KRW 62.0 Tn | KRW 107.4 Tn |
| Number of Listed REITs | 3 (2017) | 13 (2020) | 24 (2024) |
| Assets of Listed REITs | KRW 0.4 Tn | KRW 5.8 Tn | KRW 18.1 Tn |
| Share of Listed in Total | — | — | 16.9% |
Listed REITs offer average dividend yields above 7%, with an average annual rate of 7.4% in 2023. An investment of KRW 50 million can thus generate about KRW 3.7 million in annual dividends, also benefiting from a preferential tax rate (9.9% for holdings over three years).
Nevertheless, the weight of REITs in the Korean stock market remains low (0.2% of KOSPI market cap), far below the United States (≈ 6%) or Japan (≈ 4%). The catch‑up potential is therefore significant.
Regulatory Reforms and New Tools: ‘Project REITs’
Aware of this potential, the Ministry of Land, Infrastructure and Transport (MOLIT) has made growing the REIT industry a key axis of its real estate revitalization strategy. A REIT revival plan was announced in 2024, followed by two waves of legislative reforms:
REIT regulation was modernized in two stages: in 2024, a first set of amendments simplified the creation and operation of classic REITs (structure, governance, leverage limits). Then, in 2025, a second reform introduced a new vehicle, **Project REITs**, designed to integrate both the development and operational phases of assets within the same structure.
Project REITs can finance both land acquisition and construction costs, with a leverage cap equivalent to twice equity, extendable up to ten times via a special shareholder resolution. Existing REITs can convert some of their compartments into these.
The reforms introduce notable tax benefits for REITs, including partial property tax exemptions, reductions in acquisition and registration taxes, and the deductibility of distributed dividends (if at least 90% of distributable income is paid out). They also facilitate their stock exchange listing. The government’s stated goal is to broaden and democratize public and institutional investor access to the real estate market via these transparent structures, as an alternative to opaque setups.
Portfolio Diversity and Rise of Logistics
Historically, REIT portfolio composition reflected housing policy priorities, with a high share of residential (the “New Stay” program from 2014). But the trend is gradually reversing: the share of office and logistics is increasing, especially among listed REITs, which focus mainly on office, retail, and logistics assets.
Players like ESR Kendall Square REIT have specialized in modern logistics centers and attracted heavyweight investors, such as the Dutch pension fund APG, which committed over $400 million in 2024 to the country’s first perpetual core logistics fund, managed by ESR Kendall Square.
For an international investor, Korean REITs offer three advantages:
– liquid access to asset classes that can be hard to buy directly (prime Seoul offices, XXL warehouses, 5★ hotels);
– high dividend yields in the current environment;
– exposure to the rise of ESG management, some REITs already integrating top‑tier GRESB ratings.
New Models: Fractionalization, Blockchain, and Digitization of Investment
Beyond REITs, South Korea is at the forefront of fractional real estate investment models, driven by digital technologies and blockchain. Since 2019, several platforms have been admitted into the financial ‘regulatory sandbox’, a scheme granting them a temporary exemption from certain regulatory constraints to test innovative models for up to four years.
Platforms now offer shares of tokenized real estate trusts (DABS) to individuals. In February 2025, regulators published a reform proposal to integrate these models into common law, planning the creation of a new fractional platform‑specific intermediary license.
For a foreign investor, these innovations open interesting prospects:
– ability to take granular exposures on emblematic assets, without mobilizing large capital;
– portfolio diversification via liquid securities backed by Korean real estate;
– potential integration of these products into broader real estate portfolio tokenization strategies.
Risks and Points of Caution: Credit, Household Debt, Due Diligence
Despite a favorable context, the Korean market is not without risks. A savvy investor must integrate them into their strategy.
Private Debt and Project Financing
South Korea stands out for its very high level of household debt, around 105% of GDP at the end of 2023. Authorities monitor this closely, especially as certain financial segments are highly exposed to real estate project financing (PF):
– Banks are relatively less exposed (about 1.5% of their total outstanding, with a near‑zero default rate on PF);
– however, mutual savings banks, finance companies, and securities firms show PF non‑performing loan ratios between 4.4% and 5.6%, and several institutions have recorded net losses.
This is the amount, in billions of KRW, of the comprehensive support plan implemented by authorities to stabilize the market.
For an investor, this means that: decisions must be made considering market risks and opportunities.
– banks remain relatively safe financing partners;
– opportunities may emerge in the distressed asset market (NPLs, restructurings of developers like Taeyoung E&C);
– selection of leverage (senior, mezzanine, preferred equity) is decisive for the risk profile.
Enhanced Due Diligence: Legal, ESG, and Governance
The legal and corporate structure of many Korean groups, particularly chaebols, can be complex. LBO‑type operations raise specific questions about director liability, and ‘off‑balance‑sheet’ risks are a reality:
– undisclosed debts;
– ongoing litigation;
– insufficient environmental provisions;
– commitments to staff or latent tax liabilities.
Best practices for due diligence in South Korea include: thorough analysis of commercial registries and executive backgrounds, verification of intellectual property rights, examination of relationships with local supply chains, understanding of sector‑specific regulations, and assessment of corporate cultural practices to ensure successful integration and compliance.
– detailed analysis of related‑party transactions;
– detailed review of financial statement footnotes for potential liabilities;
– site environmental audits, especially for redevelopment projects;
– verification of compliance with labor, personal data (PIPA), and safety legislation.
To protect themselves, investors increasingly use contractual risk management tools (tailored representations and warranties, escrow accounts, Warranty & Indemnity insurance), while relying on local law and consulting firms.
A Regulatory Framework in Motion: Additional Opportunities
Several targeted regulatory evolutions create complementary investment niches.
Senior Residences and Managed Real Estate
Faced with rapid population aging, the government launched a senior residence revitalization plan in 2024, aiming to remove regulatory obstacles to the creation and operation of such products. Specific legislation is expected in the first half of 2025.
For investors, this opens a field of possibilities:
A concrete example of diversification into alternative real estate involves: developing or acquiring senior service residences; adapting existing buildings, such as obsolete hotels or office buildings, to convert them into managed uses like senior living, co‑living, or medicalized spaces; then structuring these assets within investment vehicles like Real Estate Investment Trusts (REITs) or Project REITs, which allow benefiting from specific tax advantages.
Visa and Residence Through Real Estate Investment
South Korea also offers some residency‑by‑investment pathways linked to real estate, though more regulated than in other countries:
An F‑2‑10 visa is accessible with an investment of at least KRW 1.5 billion in real estate in designated areas. It is valid for two years, renewable, and can lead to permanent residence (F‑5). Jeju Island offers a reduced threshold of KRW 500 million. Obtaining the F‑5 visa may require maintaining the investment for five years and demonstrating Korean language proficiency.
These regimes, however, remain focused on residential and tourism, and the assets generally cannot be leased during the investment period. They are therefore not, at this stage, a major vector for commercial real estate, but may interest some family offices or ultra‑HNWIs wishing to couple wealth strategy and international mobility.
Conclusion: A Deep, Sophisticated, but Selective Market
South Korea’s commercial real estate today offers a singular profile in Asia: a deep, liquid, and transparent market, supported by:
– an advanced and highly urbanized economy;
– a controlled openness to foreign capital;
– a regulatory framework encouraging collective vehicles (REITs, Project REITs);
– strong dynamics in prime offices, logistics, and hospitality;
– a rapid ESG transformation creating new sources of value.
For an investor, the key is specialization:
To invest in Seoul, prioritize first‑rate offices or those with strong repositioning potential in the three main business districts or new hubs like Magok and Yongsan. Target Grade A logistics in Greater Seoul, especially in sub‑markets where future supply is dwindling and vacancy is decreasing. Choose retail assets on the most resilient and touristy streets, or at the ground floor of premium office buildings. Benefit from the bullish hotel cycle in high‑density tourist and medical neighborhoods. Use REITs and new fractional platforms to adjust your exposure based on your risk tolerance and investment horizon.
In an environment where rates are expected to remain on a downward trajectory and environmental regulatory pressure will continue to intensify, well‑located, well‑financed, and well‑managed assets should record solid relative performance. South Korea, long perceived as a difficult market to access, is opening up, without relinquishing its demand: an exacting, but potentially highly rewarding, combination for investors capable of making their selection with finesse.
A French business owner around 50 years old, with a financial portfolio already well‑structured in Europe, wanted to diversify part of his capital into residential real estate in South Korea to seek rental yield and exposure to the South Korean won. Allocated budget: $400,000 to $600,000, without leveraging debt.
After analyzing several markets (Seoul, Busan, Daegu), the chosen strategy involved targeting an apartment in a recent building in a high‑growth neighborhood like Gangnam (Seoul) or Haeundae (Busan), combining a target gross rental yield around 6–7% – keeping in mind that ‘higher yield means higher risk’ – and medium‑term appreciation potential, with an all‑in ticket (acquisition + fees + potential light renovations) of around $500,000.
The mission included: selection of city and neighborhood, connection with a local network (real estate agent, lawyer, tax specialist), choice of investment structure (direct ownership, local company), and definition of an international diversification plan over time.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
