SOUTH Korea could present bargain investment opportunities for foreigners after a sharp slide of about one-third in the value of its currency, the won, so far this year, say its officials.
The won is trading at a 10-year low, at about 1,510 per US dollar and near 1,000 per Singdollar.
Deputy Minister for Trade and Investment Kwon Tae Kyun told foreign journalists recently: 'It's the right time to invest, because the Korean won has been devalued quite a bit.'
Another plus: Seoul boasts that it is taking swift action to deal with the impact of the global financial crisis. It also says the country is much better placed than back in 1997 when the Asian financial crisis took a heavy toll.
Mr Kwon said: 'We're not too worried despite the global financial crisis, as we've stronger fundamentals. Korea's response to this crisis will be pre-emptive, sufficient and decisive. Our short-term priority is to stabilise the financial market and ensure liquidity.'
He noted that the country has a more robust foundation now than in the lead-up to the Asian financial crisis of 1997.
Then, South Korea's foreign exchange reserves were a paltry US$8.9 billion. As at September this year, they were US$240 billion (S$364 billion). In 1997, the debt ratio of Korean companies was a crippling 425 per cent. As at the second quarter of this year, the figure had fallen to 96 per cent.
Seoul has responded to the current credit crisis by pledging more than US$100 billion in loan guarantees and offering an infusion of US$30 billion to prop up the banking system. Earlier this month, it unveiled an US$11 billion package which includes additional government spending and tax cuts.
Read the full story in Tuesday's edition of The Straits Times.
