This post was contributed by a community member. The views expressed here are the author's own.

Health & Fitness

International Investing - South Korea

The world is a big place – there are over 190 countries and 7 billion people in the world, which really boggles the mind if you sit down and think about it. In addition to being an interesting intellectual exercise, this fact can also have broad implications for your investments and your financial future. It is easy to stay focused on U.S. firms, news, and events during the day-to-day grind, but it is always important to be aware of your surroundings – especially when it comes to your investments. With that in mind, this series of articles will focus on countries and investment opportunities outside the United States that you might not usually hear about.

As always, be sure to consult a financial services professional familiar with both the potential investment and your unique financial situation before embarking on any investment program.

South Korea

Find out what's happening in Fair Lawn-Saddle Brookwith free, real-time updates from Patch.

South Korea, while it has been an economic success story for decades, launched into the social media sphere during the last 12-18 months when Psy burst onto the musical stage. South Korea has long been put forward as an example of economic success and diversification, even with questions beginning to be asked about the emphasis placed on standardized tests and the economic concentration in a few of the largest companies in South Korea.

Psy aside, there are many other reasons why South Korea might be a viable addition an international investor’s portfolio. As one of the largest economies in the world, the county has managed to consistently grow despite overpopulation and very limited natural resources. It has a government that is fully invested in continuing economic success and stability, a highly educated population, and a cultural mindset that rewards discipline and hard work. The economy of South Korea, while dominated by a small number of large firms, is very diversified – entertainment, energy, chemical, heavy industry, and automotive are a just a handful of the opportunities available to investors.

Find out what's happening in Fair Lawn-Saddle Brookwith free, real-time updates from Patch.

When looking at investing in South Korea, there are two primary ways to go about it – ADRs or direct purchases. An ADR is basically a certificate held by a U.S. banking institution that represents a certain number of shares in the foreign company, and is held by the U.S. institution. This helps to cut down on the administrative fees and other costs that would otherwise be incurred. For more direct exposure, you can also purchase shares directly from South Korean stock exchanges if your broker offers those services to its retail investor base (you and me).

South Korea is home to some of the largest firms in the world, including Samsung Electronics, Hyundai Motor, Kia Motors, and the LG conglomerate. Additional popular investment opportunities for investors looking for company specific exposure include KB Financial Group and SK Telecom. These investment possibilities demonstrate the wide breadth of investment opportunities that are available in South Korea.

As always, I have attached some links with more information
Happy Reading!

http://internationalinvest.about.com/od/globalmarkets101/a/A-Guide-To-Investing-In-South-Korea.htm

We’ve removed the ability to reply as we work to make improvements. Learn more here

The views expressed in this post are the author's own. Want to post on Patch?

More from Fair Lawn-Saddle Brook