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[Abstract]
In this study, we have set the focus on the findings of the main reasons for the recent rapid increase of Korean overseas investment in the real property, which has been acting as a new normal of Korean economy. Study reveals major reasons for this phenomenon which are summarized as follows;
1) Prevailing of resent global economic situation under low economic growth and low interest rate. 2) Positive increase of investment trend as an alternative investment method rather than traditional tools such as stocks, and bonds. 3) Appearance of large, various national or private pension funds, financing institutions and their poor performance of fund operation which in turn drives them to invest in the overseas real property. 4) Seek more stable and profitable opportunities in the fund operation. 5) Aggressive investments and profitable returns mainly done by China and other national funds. 6) Hedging the inflationary pressure. 7) beneficial tax burden on the financial incomes on investors point and others.
It's worth note that Korea's overseas investment in real property is substantially increasing having the weakness of fundamental infra-structure or impediments such as lacks of accumulated experiences, capitals, specialized man-power. In analysing the theme, there are certain limits as there is no official statistics in the investment of overseas real property. However, in this study, we have reviewed present status of Korea's overseas investment in the real property and subsequent problems and responsive strategies. And also, focused on the development of the industry and on the creation of new jobs and works, we have examined the cases of advanced countries and made several suggestions for the policies to be adopted by the authorities concerned. |
