South Korea has come a long way since the 1997 Asian Financial Crisis when millions of Koreans donated their gold jewelry in an effort to pay off the country's currency reserves and pay off foreign debts. Today, the country is one of the largest holders of foreign exchange reserves and its economy is considered by investors to be one of the most robust in Asia.
Unfortunately, this economic improvement has led to a strong won valuation in recent months that has many exporters worried. But while businesses may be worried, investors have been optimistic, as the odds of intervention in the cuurency market. Over the past five days, the iShares MSCI South Korea Index Fund (NYSE: EWY) is trading up nearly 4% as a result.