South Korean logistics investment volume hits record KRW5.7 trillion in 2025

Thanks to large-scale asset deals.

South Korea’s logistics investment market reached KRW5.70 trillion in 2025, up 16.8% from 2024, driven largely by large-scale asset deals, according to a report by Savills Korea.

The consultancy notes that forward purchase activity has been declining since 2023, as investors remain cautious about vacancy risk from new supply pipelines. Excluding forward purchases, hard asset transactions alone totaled KRW5.20 trillion, marking an all-time high. Distressed transactions also fell sharply, accounting for 19% of total volume in 2025, down from 33% in 2024, suggesting improved transaction quality overall.

Dry storage assets entered a recovery phase, with average transaction prices rising 15% year-on-year to KRW6.20 million per pyeong. Mixed-use properties transacting below KRW6.00 million were largely distressed or faced leasing challenges, particularly in cold storage. Savills highlighted that some landlords converted vacant cold storage areas to dry storage to mitigate vacancy risk, while non-distressed mixed-use assets averaged KRW7.45 million per pyeong.

Savills said foreign investors remained dominant, accounting for approximately 68% of total volume, with prime assets over 99,000 sq m attracting the most interest. GIC and Brookfield were the most active buyers in the first half of 2025, followed by KKR, M&G Real Estate, and Starwood Capital in the second half.

KKR led the market, acquiring multiple major logistics centers including the Anseong Miyang Logistics Center, Hwaseong Jegi-ri Logistics Center, Kendall Square Maegok DC, and the 430,253 sq m Brookfield Cheongna Logistics Center, collectively accounting for around KRW1.50 trillion in transactions, or 26.5% of total volume.

With leasing demand steady and new supply slowing, Savills noted that the market is approaching supply-demand equilibrium. Domestic institutional investors have returned, and transaction pricing for stabilized prime assets is recovering, with cap rates compressing to the low-5% range, Savills said.