Foreign investment shapes Korea’s co-living market

South Korea's co-living market has grown substantially since 2023 due to shifting housing preferences among younger demographics and high price-to-income ratios, attracting major foreign investors including GIC, KKR, Morgan Stanley, CPPIB, Hines, Invesco, M&G Real Estate, and TPG Angelo Gordon, with notable deals including ICG's approximately KRW 300 billion co-living fund partnership with Homes Company. Recent regulatory measures introduced in late 2025 restricting tax exemptions and loan-to-value limits to 0% in regulated areas have created policy uncertainty and wait-and-see sentiment among foreign investors, though sector fundamentals are expected to remain strong due to growing long-term overseas visitors and demographic shifts toward single-person households.