The Financial Supervisory Service said on the 17th that as of the end of September last year, the balance of overseas real estate alternative investments across all domestic financial sectors totaled 55.1 trillion won. That was an increase of 600 billion won from the previous quarter, equivalent to about 0.7% of the financial sector's total assets of 7,653.9 trillion won.
By financial sector, insurers accounted for the largest share at 30.8 trillion won, or 55.8% of the total. They were followed by banks at 11.5 trillion won (20.8%), securities at 7.3 trillion won (13.2%), mutual finance institutions at 3.5 trillion won (6.3%), specialized credit finance companies at 2 trillion won (3.7%), and savings banks at 100 billion won (0.1%).
As for the ratio of overseas real estate alternative investments to total assets by sector, insurers were highest at 2.3%, followed by securities at 0.8%, mutual finance institutions at 0.5%, specialized credit finance companies at 0.4%, banks at 0.3%, and savings banks at 0.1%. As of the end of September last year, total assets by sector were tallied at 4,086.2 trillion won for banks, 1,327.2 trillion won for insurers, 895.5 trillion won for securities, 771.3 trillion won for mutual finance institutions, 448.9 trillion won for specialized credit finance companies, and 124.8 trillion won for savings banks.
Looking at the maturity profile of overseas real estate alternative investments, 3.5 trillion won (6.3%) is set to mature by 2025. By 2026, 9.2 trillion won (16.7%) will mature; by 2028, 16 trillion won (29.1%); and by 2030, 8.8 trillion won (16.0%). Investments maturing from 2031 onward total 17.6 trillion won (31.9%).
In the third quarter of last year, financial companies' overseas single business site real estate investments totaled 31.9 trillion won. Of that, investments that triggered events of default (EOD) amounted to 2.06 trillion won, or 6.45% of the total. The amount of EOD cases edged down from the previous quarter due to factors such as preemptive loss recognition and the resolution of events of default.
The financial authorities completed revisions to best-practice standards for risk management related to financial companies' overseas alternative investment operations and plan to check whether the rules are being implemented in practice. Revisions across all financial sectors are scheduled to be completed in the first half of 2026.