South Koreans’ purchases of foreign properties dropped during Q1 2010 from Q4 2009, as investor sentiment remained sluggish despite steady improvement of the global economy, according to data released by the Ministry of Strategy and Finance.
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The data showed that South Koreans bought a total of US$58.7 million worth of land parcel, houses and other properties in foreign countries during the first three months of the year – sharply down from the US$85.1 million recorded during the last quarter of 2009.
The sharp quarter-on-quarter reduction is attributed to the sluggish sentiment among investors, who remain reluctant to embark on acquiring expensive assets amid persistent uncertainties in the global economic condition, according to another report.
South Koreans’ investments in foreign properties had been increasing sharply, bolstered by the government’s move to ease related regulations, until the fiscal crisis hit in late 2008.
Based on the data, local citizens purchased a total of US$3.6 million worth of foreign property in 2003, but the amount climbed to US$743.5 million and US$1.17 billion in 2006 and 2007, respectively.
However, the global financial crisis and resulting economic downturn worldwide dampened market sentiment. The data showed that property deals halved to US$514 million in 2008 and further dipped to US$223 million in 2009.