South Korean financial firms' overseas real estate investment fell 500 billion won to 55.8 trillion won as of end-September 2024 from the quarter ended June 2024, the Financial Supervisory Service (FSS) reported Friday.
This accounted for 0.8% of total financial sector assets.
Insurance companies held the largest share at 54.3%, followed by banks and securities firms. North America was the top investment destination, making up 61.1% of total exposure.
Despite the US Federal Reserve's rate cuts, market recovery remains sluggish amid US election uncertainties, with 7.71% of property investments exposed to defaults. The FSS pledged stronger oversight and stricter risk management standards to prevent systemic risks, South Korea's integrated financial regulator said in the release.