Re-evaluation of stance on South Korean stocks

South Korea is beset with macroeconomic problems which are causing managers to re-evaluate their exposure to the country. In April the country swung to a current account deficit for the first time in 30 months. Industrial output also fell for the third successive month as output from factories fell 2.3% seasonally adjusted in April compared to a 1.7% drop in March. Alistair Thompson, manager of Edinburgh Pacific unit trust, is already underweight South Korea by 2% and wants to further reduce his 12% weighting to 10% of the portfolio. The weakening of the currency is a double-edged sword,...