South Korea's GEPS pension fund plans to double its real estate exposure from 2.9 percent to 5 percent of its total portfolio over the next five years. This strategic shift aims to diversify investments and address its heavy under-allocation in global real estate, as stated by head of real estate Chongmook Kang. Until 2022, GEPS invested exclusively in direct real estate assets, but interest rate hikes that year forced a significant change.

After learning a lesson, the fund now focuses on commingled funds to mitigate concentration risk from its previous single-asset-heavy portfolio.