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FSS reports proper management of overseas real estate investments by financial firms

Published: 15 May. 2025, 14:16

The Financial Supervisory Service building in Yeouido, western Seoul [YONHAP]

Financial firms' exposure to overseas real estate has been properly managed despite lingering woes over their potential deterioration, the country's watchdog said Thursday.

The outstanding value of overseas real estate invested by Korean financial institutions amounted to nearly 55.8 trillion won ($39.8 billion) at the end of September 2024, down 500 billion won from three months earlier, according to the Financial Supervisory Service (FSS).

The third-quarter reading also marks a fall from 57 trillion won at the end of March last year, and 57.6 trillion won at the end of 2023.

Their investments in overseas real estate accounted for 0.8 percent of their total assets of 7,182.7 trillion won.

Some 2.64 trillion worth of their investments were estimated to be at risk of turning sour at the end of September, accounting for 7.71 percent of the total, and the figures remained little changed, the watchdog said.

The FSS said it will tighten regulatory supervision on real estate projects, which pose risk to deterioration.

Yonhap