Korea ViewPoint_Korean buyers pursue overseas acquisitions despite pandemic-related disruptions
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.