The Financial Times of the UK recently assessed that capital from the recent rally in the South Korean stock market is flowing back into real estate.

The media outlet highlighted the recent flow of funds from South Korean retail investors, reporting that the rise in the KOSPI is actually stimulating the real estate market once again.

While the South Korean stock market continues to show strength amid expectations of expanded AI investment and a recovery in the semiconductor industry, the gains are ultimately moving into real estate, the report stated.

Actual figures support this trend.

According to the Ministry of Land, Infrastructure and Transport, 13.2% of transactions for high-priced homes worth 1.5 billion won or more in April were funded by the sale of securities. This marks the first time the figure has reached double digits since the relevant statistics began to be compiled.

This is approximately three times the monthly average over the past five years, which is interpreted as a clear sign that profits realized in the stock market are flowing into the purchase of high-priced homes.

Foreign media diagnosed this phenomenon as being at odds with the South Korean government's policy direction.

The current administration has repeatedly stated its intention to change the structure of household assets, which are excessively concentrated in real estate, and to redirect funds toward productive investments.

However, the Financial Times described South Korea as "a country where real estate is the ultimate safe asset."

According to an analysis by Morgan Stanley, real estate accounts for approximately 75% of South Korean household assets, while the share of stocks remains at only around 9%.

Household debt stands at about 175% of net disposable income, which is high among major OECD countries.

The media outlet interpreted this structure as showing that "while stocks may be a means to generate profit in Korea, the final vessel for storing wealth remains real estate."

Past trends in returns are also cited as a background that reinforces this perception. According to data from KB Kookmin Bank, the KOSPI rose by approximately 25% between 2015 and 2025, while the average house price in Seoul increased by more than 50% during the same period.

Ultimately, this suggests that a "learning effect"—that houses appreciate more—has accumulated.

The media outlet assessed that although the South Korean government has introduced various real estate measures, such as tightening loan regulations, revising tax systems for multi-home owners, and imposing transaction restrictions in certain areas, these steps are insufficient to change the market's deep-rooted preference.