Korea leads Asia's recovery

Optimism is growing for Korea's recovery from a sharp slowdown in the wake of the worldwide financial crisis and recession, largely thanks to the government-led stimulus measures and aggressive interest rate cuts by the central bank. Indeed, Asia's fourth-largest economy has impressed many investors by its surprising rebound, especially compared with its regional peers.

We think the consensus has consolidated behind the view that Korea's is the strongest economic recovery in Asia ex-China, said Tim Condon, ING chief economist for Asia.

On September 15, Moody's Investors Service said that due to the government's willingness and ability to support the banking system against external exposure and to implement a timely fiscal stimulus programme, Korea's sovereign credit...