BMI View: South Korea boasts a well developed commercial real estate sector with a strong financial sectorand an affluent population supporting demand for commercial property. The country's export sector, whichis key to economic growth, means the country also has extensive demand for industrial space. While themarket is dominated by local firms, including an increasing number of Korean conglomerates, foreign directinvestment has been growing steadily in recent years. The outperformer in the long term will be the retail sub-sector, driven by increasing demand for Westernstyleshopping experiences, as well as the arrival of international retailers and tourists into the country.Although the creation of new retail space could cause some fluctuation in rental and vacancy rates, in thelong term the story is one of solid growth. This is true of all the cities that we cover, but we do note thatalthough the retail market is Seoul is mature, elsewhere in the country there is certainly room for growth.