South Korea has not been a hot topic lately, but strong economic factors and an "extraordinary valuation opportunity", make the exchange traded fund (ETF) iShares MSCI South Korean Index Fund (EWY) an investment of interest.  EWY is up 10% since the late February fallout. Mark Hulbert for MarketWatch.com reports South Korean stocks are selling at a lower valuation than U.S. stocks due to the North Korean nuclear issue.  But, is the threat severe?  If you don’t think so, then there could be an investment opportunity.

South Korea is the seventh largest trading partner with the U.S. and the eleventh largest economy in the world. The country moved to a market-oriented investment model away from the government-directed system. The economy grew 0.9% for the first quarter 2007, due to rising exports and a spike in consumer spending. Solid exports helped ease concerns of implications from a U.S. economic slowdown.  Seyoon Kim for Bloomberg.com states because consumption is strong, the economy is likely to grow at a faster rate during the second half of the year.

Negotiators recently announced the U.S. and South Korea are to create a free trade arena, symbolizing the most ambitious trade agreement America has finalized since NAFTA, a decade ago. According to The Economist, both governments agree it is a historic achievement for both sides.

Tags: Asia, South Korea