| Korea, known as the 'land of morning calm,' is | | | | of Seoul are Yoido and Kangnam. Yoido is home to a |
| situated in a key location in East Asia. The | | | | large number of financial institutions including the |
| mountainous Korean peninsula stretches about 500 | | | | Korean Stock Exchange. |
| miles south towards Japan. In recent years, the | | | | The demand for the country's commercial property is |
| country has achieved tremendous economic growth. | | | | growing rapidly among global asset managers. |
| Modern Korea is a stable nation both politically and | | | | Commercial property market in the country has |
| economically. A large number of foreigners are now | | | | matured to become more stable, and it is the least |
| attracted to invest in all sectors of the country's | | | | volatile in Asia with a steady vacancy rate at 4 |
| economy including the property market. This has | | | | percent. Asset managers forecast the Korean |
| strengthened the property market in the country. | | | | commercial property market will continue to expand |
| Korea is one of the prime property investment | | | | for two to three years since the demand for office |
| destinations in Asia Pacific. Not only is the country's | | | | buildings and commercial space is strong, whereas |
| property market transparent, but the economy itself | | | | supply is limited. |
| is very dynamic, offering much scope for growth and | | | | People invest in the country's commercial properties |
| development. | | | | mostly in order to provide them for rent or lease. |
| The term 'commercial real estate' includes properties | | | | The country's commercial properties are regarded as |
| used for commercial, industrial, medical or educational | | | | one of the greatest assets. Commercial property |
| purposes. Residential properties having more than | | | | market in Korea is an ideal choice for anyone who |
| four residential dwelling units also are considered | | | | wishes to make the most of his money. |
| commercial properties. Commercial properties include | | | | Laws pertaining to real estate transactions in the |
| hotels, office buildings, shops, retail space, and | | | | country are quite liberal and simple. Unlike many Asian |
| warehouses. | | | | nations that impose restrictions on foreigners to |
| Commercial property market provides massive | | | | invest in properties, Korea does not prescribe any |
| investing opportunities. Investing in commercial | | | | specific restrictions for foreigners to buy or sell a |
| properties means acquiring commercial properties | | | | property. Foreigners should, however, comply with |
| such as mobile home parks, office buildings, retail | | | | the FLAA Act (the Foreigner's Land Acquisition Act). |
| properties, and even raw land. Commercial properties | | | | During the past couple of years, the country's |
| often carry a higher degree of risk. It turns out to be | | | | property market has been greatly influenced by |
| beneficial only, if you have a sound knowledge about | | | | speculative demand, owing to the large amount of |
| this market. | | | | available capital and low interest rates. As the earning |
| The property market in Korea offers you much | | | | rates of financial capital have fallen in recent years, |
| potential for growth, though the prices of real estate | | | | Investors have come to look upon real estate as a |
| in the country are comparatively high. Korea's | | | | possible option that may yield large returns as the |
| property market prices have seen a rapid rise | | | | earning rates of financial capital diminished in recent |
| throughout the country, especially in the Seoul | | | | years. |
| metropolitan area. | | | | The real estate fiscal systems in the country include |
| In 2002, residential property prices increased a sharp | | | | asset-backed securities (ABS), mortgage-backed |
| 50% over the previous year and commercial | | | | securities (MBS), and real estate investment systems |
| property prices hiked up by about 10%. This upward | | | | (REITS). These real estate products can be classified |
| trend in the property prices is expected to continue | | | | into two categories, depending on their |
| for some years. The prices are still higher in such | | | | characteristics. The first involves securities based on |
| prime locations as Seoul. But, investing in commercial | | | | asset liquidity and the other involves real estate |
| properties in Seoul offers you huge benefits, owing | | | | mutual funds or real estate securities. |
| to factors such as the landlord-friendly leasing | | | | The country's real estate financing market will |
| system, market lucidity, and easy convertibility of | | | | continue to expand in the coming years owing to the |
| capitals. | | | | steady increase in demand. It is encouraged by |
| Seoul, the political and commercial capital of Korea, | | | | government policies designed to promote the |
| has a large concentration of all types of commercial | | | | secondary mortgage market. |
| properties. The two most prominent business districts | | | | |