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Korea A New Safe Haven for Investors

According to Yonhap News,

(Seoul = Yonhap News) Reporter Park Jin-hyung

Morgan Stanley identified Korea as “the new safe haven” for investors, according to U.S. business and technology news website Business Insider last week.

In a new report, Morgan Stanley noted that Korea implemented regulations to enhance economic stability at the wake of the global financial crisis in 2008, and that it stands out as a safe haven compared to other Asian economies.

The report pointed out that Korean companies have become more careful in capital expenditure after the Asian Financial Crisis in 1997, indicating that there should be no overcapacity issues in the economy.

In addition, the report evaluated that Korea posted a record high current account surplus based on its strong export competitiveness and that its foreign currency reserve is more than sufficient to absorb external shock.

Also, the hot money that Korea received from overseas since 2009 is at a minimal level.

Moreover, the report said that unlike other Asian countries, Korea has no risk of a property bubble, and that the Bank of Korea will not increase interest rates as it is likely to maintain an accommodative stance.

Copyrights Yonhap News Agency. All Rights Reserved.

Source Text

Source: Yonhap News (Oct. 18, 2013)

** This article was translated from the Korean.
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