Overseas Property Buying Tops $100 Mil.
By Lee Hyo-sik
Staff Reporter
South Korea's overseas real estate purchases surpassed $100 million last month for the second consecutive month, boosted by the recent relaxation of rules on investment in properties abroad, the Ministry of Finance and Economy said Friday.
South Koreans bought overseas properties worth $103 million in May, with a total of 274 purchases, following an all-time high of $129 million worth of property purchases a month earlier.
Purchases of homes and land overseas have steadily increased since the beginning of the year. In January, Koreans bought $64 million worth of real estate in foreign countries, with the number of purchases reaching 182.
The government has eased foreign exchange rules to help boost the flow of dollars out of the country as a means to curb the won's further gains against the greenback.
Increased borrowing of foreign currencies by banks and steady investment in stocks by foreign investors have boosted the dollar supply on the local currency market and strengthened the won's value.
In January, it eased restrictions on foreign real estate purchases to spur overseas investment. Individuals are now allowed to spend up to $3 million on foreign property, up from the previous $1 million.
Most of the purchases were made in the United States. South Koreans purchased 74 pieces of real estate in the U.S., followed by 46 in Malaysia, 39 in the Philippines and 32 in Canada, according to the ministry.
Of the purchases of real estate overseas, those for investment purposes stood at 195 worth $73 million. Purchases exceeding $1 million came to 11 totaling $17 million.