South Korea’s ETF Unlikely to Suffer from U.S. Subprime Problems

South Korea’s exchange traded fund (ETF) iShares MSCI South Korea Index (EWY) continues to thrive when many other markets are worried about a credit crunch. Currently, EWY is up 36.5% year-to-date.

Earlier this week, South Korea’s vice finance minister said the U.S. subprime mortgage issues will have a limited impact on the country, because of their low exposure in Korean institutions, reports Kim Joo-young for Yonhap News. The vice finance minister also said that the U.S.’s interest rate cut could boost U.S. economic growth, which would help South Korea’s exports, according to Korea.net.