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South Korea’s government bonds have emerged as a darling for foreign investors seeking higher-yielding but relatively safe assets in emerging markets.
Korean treasuries have become increasingly popular in recent years as central banks around the world diversify their foreign-currency reserves away from the US dollar amid ultra-low interest rates offered by the world’s largest economy.
Analysts say foreign investors are attracted to South Korea’s strong economic fundamentals. Driven by brisk exports of cars and electronics by Hyundai Motor and Samsung electronics, the Korean economy continued its robust growth last year, despite the global economic slowdown.
[Image Credit] FT