As investors are turning their heads overseas to emerging markets, South Korea may offer the best of both a developed and emerging market economy. Related exchange traded funds (ETFs) are a diversified way to get the exposure you want.

Since the U.S. economy’s growth has slowed, investors are focusing their attention overseas. Aaron Levitt for Investopedia reports that South Korea is a  high-tech exporting economy that has thrived in the global credit crisis. In the first quarter of 2010, GDP increased by nearly 8.2% from a year earlier. Industrial production is up 20% from the year prior. [4 Reasons South Korea’s ETF Is Climbing.]

John W. Miller and Matthew Dalton for The Wall Street Journal report that European governments recnetly approved a free trade agreement with South Korea, with a bilateral trade at $74.3 billion last year, it is one of the biggest free trade deals ever between two economies. [5 Reasons To Watch South Korea’s ETF.]

All 27 European Union members had to clear the treaty, which must still be ratified by the European and Korean parliaments.

Furthermore, the South Korean economy has prospered in the global economic recovery, thanks to a weak currency that has lifted exports. Evan Ramstad for The Wall Street Journal reports that the country is now experiencing a slump in real estate that economists say will hamper growth. Both personal and corporate de-leveraging is taking place throughout South Korea.

To see more articles about South Korea’s economy, visit our South Korea page.

  • iShares MSCI South Korea Index (NYSEArca: EWY)
  • IQ South Korea Small Cap ETF (NYSEArca: SKOR)

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.