This article was first published on Signal, the Seoul Economic Daily's capital markets newsletter, at 5:27 p.m. on April 10, 2026.
The combined value of "investment property" held by Korean listed companies has surpassed 107 trillion won ($78.5 billion), a survey found. Excluding tangible assets used for production such as factories and warehouses, the figure indicates that companies hold massive real estate assets unrelated to their business operations. Critics argue that firms with excessive investment property relative to their market capitalization should deploy these assets as funding sources for new business investments.
A comprehensive survey of 2,554 KOSPI and KOSDAQ-listed companies conducted by the Seoul Economic Daily and Truston Asset Management found that the combined value of investment property held by these firms reached 107.89 trillion won. Investment property is an accounting term referring to real estate owned for rental income or capital gains, distinct from tangible assets used in business operations. A distribution company's logistics center used for operations is classified as tangible assets, while a manufacturing company's logistics center held for rental purposes is classified as investment property.
President Lee Jae-myung addressed corporate non-operating real estate at the first plenary session of the National Economic Advisory Council on Wednesday, saying, "Why do companies hold such massive amounts of real estate that they don't need and have no immediate use for?" He added, "Let's consider imposing a significant holding burden."
Some companies' investment property values exceed their market capitalization. Ewha Industrial (001840.KS), a KOSPI-listed company primarily producing industrial dyes, had a market capitalization of 42.6 billion won based on Wednesday's closing price but holds investment property worth 204.3 billion won. The company has owned buildings and land in prime Seoul metropolitan areas for decades, but with growth stagnating in its core business, the stock price has remained in the 10,000 won range for a decade.
Market observers say listed companies should divest land and buildings unrelated to their operations and allocate proceeds to research and development or business expansion. "When most of a company's capital is invested in unproductive areas, it should be seen as harming shareholder and corporate interests," said Yoon Sang-nyeong, head of the engagement team and attorney at Truston Asset Management. "Capital market funds should be directed toward growing companies and markets, not non-operating real estate."
