VIDEO: Untapped investment strategies to get ahead in South Korea

Kyung W Paik from IGIS Asset Management gives his insights on finding value in the increasingly capital-crowded market.

Increasing institutional capital flocking to global real estate markets has made its impact in South Korea as well. According to Kyung Paik, managing director of Seoul-based IGIS Asset Management, this abundant liquidity has led to some overpriced transactions in Seoul in the past few years. IGIS has $20 billion assets under management, of which $15 billion according to Paik comprises of domestic assets.

According to data from Real Capital Analytics, transaction volumes in South Korea’s real estate market more than doubled from 2015 to 2017 to $18.18 billion. Data also show that the 2018 transaction volume, as of the end of the third quarter, was estimated to be $20.18 billion, more than the 2017 total.