Korea Flags Risks in $56 Billion of Overseas Property Funds
- Regulator says most concern is for individual investors
- Small likelihood of souring bets constituting a systemic risk
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Korea’s financial regulator has a close eye on overseas real estate funds worth roughly 75 trillion won ($55.8 billion), saying investments by individual investors are the most concerning.
Financial Services Commission Vice Chairman Kim So-young said at a briefing in Seoul on Thursday that while institutions might get hit with losses, there wasn’t systemic risk. He said 96% of the funds are held by institutional players.