Published: 19 Dec. 2025, 08:24
Updated: 19 Dec. 2025, 14:45
The Financial Supervisory Service’s headquarters in Yeouido, western Seoul [YONHAP]
The financial sector’s investment in overseas real estate fell in the second quarter from the previous three months amid weak market conditions, data showed on Friday.
Banks, insurers and other financial institutions had an outstanding 54.5 trillion won ($36.9 billion) worth of investment in overseas real estate as of end-June, down 1 trillion won from three months earlier, according to data from the Financial Supervisory Service (FSS).
Insurers’ outstanding investment in overseas real estate stood at 30.4 trillion won, followed by banks with 11.4 trillion won and securities firms with 7.3 trillion won.
Of the 31.6 trillion won invested by financial companies in single investment sites, 2.07 trillion won, or 6.56 percent, was at risk of an event of default (EOD).
An EOD occurs when a debtor’s credit risk rises and a financial institution recalls loans before maturity, which can result in losses for domestic financial firms from their property investments.
Yonhap