Things are looking up in South Korea’s economy. Will the positives be enough to keep its exchange traded fund (ETF) moving in the right direction?

There are some solid fundamentals supporting the case for the iShares MSCI South Korea Fund (EWY) ETF, says J. Clinton Hill for Seeking Alpha.

• Consumer confidence is high in this country, which is up to 98 this April, up from 84 previously. This is the highest reading since the bank began compiling the records.
• Trade surplus increased to $6.65 billion from $3.56 billion in February, based upon figures from the Bank of Korea. Stronger demand from China is the key reason the numbers are healthy.
• Factory output rose up 6.8% from January to February. If the momentum continues, the picture is bright.
• Growth estimates from major banks are all up, for the year 2009. Big names such as Citigroup, UBS AG, Goldman Sachs, and Deutsche Bank are all supportive.

• iShares MSCI South Korea (EWY): up 22.4% year-to-date

Tags: Emerging Markets, EWY, Global ETFs, South Korea