Morgan Stanley Real Estate Investing would close its Korean operations, manned by 10 people, after investing in the market for more than 10 years, the sources said.
The move underscored the difficulties for foreign real estate companies in the market, where transactions were dominated by domestic players, analysts said.
It's been a tough market. There hasn't been much international capital in real estate, one of the sources told Reuters.
Morgan Stanley was not immediately available for comment.
(Reporting by Lee Chyen Yee; Editing by Chris Lewis)