Diversifying into Dollar Assets amid Won Weakness and Low Growth: Korean High-Net-Worth

Background of Increased Investment: Korean High-Net-Worth

Korean High-Net-Worth: The motives behind Korean investors turning to U.S. real estate are multifaceted. First, Korea’s prolonged low-growth environment necessitates diversification of asset growth channels. Second, persistent weakness in the won has elevated dollar-denominated assets as a risk-hedging tool. Third, the relatively favorable U.S. inheritance and gift tax regime enhances its appeal. Fourth, rising demand for children’s overseas education and immigration drives interest in establishing local residences. 강남 사무실 임대

Investment Volume and Trends

According to Ministry of Economy and Finance data, Koreans remitted about USD 271.3 million (~KRW 300 billion) for U.S. property purchases in 2024, a 16.6% increase from USD 232.6 million in 2023. This surge aligns with Korea’s net external financial assets exceeding USD 1 trillion in 2022. Investment types now range from single-family homes and condominiums to townhouses and studio-type second homes, with some high-net-worth individuals leveraging the EB-5 program to pursue green cards. REAL NAME

Popular Regions and Property Types

Preferred regions for Korean investors include major metro areas such as New York, San Francisco, Boston, and New Jersey, which boast stable rental demand from students and business travelers. Condominium investments in New York and San Francisco, and townhouse purchases in Boston and New Jersey are prominent. Demand for vacation homes in Hawaii and Orange County, California, is also rising. Anticipation of U.S. rate cuts further bolsters positive return prospects.