According to Yonhap News,

(SEOUL = Yonhap News) Although the reduction of quantitative easing by the United States threatens emerging markets, foreign newspapers are mostly optimistic about the Korean economy.

According to the Ministry of Strategy and Finance and various foreign press outlets on February 9, major market analysts and the foreign press regarded Korea as a promising investment destination and projected that the nation will benefit from the global economic recovery, which will be led by a pickup in demand from the United States.

The Wall Street Journal (WSJ) cited a report by the British macroeconomic research company Capital Economics on February 5 and said that Korea has taken measures to overhaul its economy and reduce national debt. As a result, the research company included Korea in the “Brightening outlook” group along with the Philippines, Mexico, Poland and Czech Republic.

The London-based daily newspaper Financial Times (FT) on January 25 published an article titled “Similarities with 1997 Emerging Markets Crash Only Go So Far.” In the article, the newspaper introduced the forecast by Neal Shearing, Chief Emerging Markets Economist of Capital Economics, who suggested that nations such as Korea, the Philippines and Mexico will become the beneficiaries of the pickup in export demand.

The foreign press also remained positive about Korea’s major economic index.

In its “South Korea Adds to Signs of Asia Manufacturing Recovery” article on January 29, the FT highlighted Korea’s industrial output and the current account surplus of December 2013, and suggested that a recovery in exports is back on track in at least some regions of Asia.

The newspaper also reported an analysis by Credit Suisse economists in the article. “China, Hong Kong, Korea, Singapore and Taiwan were able to avoid the last shock in summer of 2013,” the economists said.

The WSJ introduced Korea’s index of industrial product for December 2013 in the January 27 article. It said that the figures, which were sharply ahead of analysts’ forecasts, are evidence of a strong recovery in the domestic demand of China and developed nations such as the United States.

In Bloomberg Rankings’ “Global Innovation Index 2013,” Korea scored a total of 92.1 points, becoming the most innovative country in the world. The nation was ranked 2nd in 2012, right behind the United States.

Kwon Young-Sun, senior Korea economist at Nomura Securities Co., Ltd., forecast that the rebound in capital investment last year is likely to continue in 2014. The WSJ stated in one of its editorials on the 27th of last month that Korea is in a much better situation compared to other nations thanks to strong global competitiveness backed by the conclusion of free trade agreements.

However, experts also pointed out that the appreciation of the Korean won and worsening Korea-Japan relationship may cast a negative impact on the Korean economy.

Nikkei Asian Review said on February 25 that due to the strained relationship between the two countries, Japan’s investment in Korea dropped by 40 percent between January and September of 2012, and Korea’s exports to Japan also struggled during the same period.

About the strong won phenomenon, the WSJ said in its analysis on February 4 that Korea’s export giants, which have made large profits for years, are now struggling due to the impact of the strong won. The FT, on the other hand, reported on January 20 that there are experts who suggest that the appreciation of the Korean won may help domestic companies strengthen their competitiveness in the long term.