Yesterday saw South Korean GDP come in...>

DATA REACT: Yesterday saw South Korean GDP come in up 1.4% for Q3 from 0.6% in

the previous quarter, surveyed was a rise of 0.9% so the economy was pleasantly

surprised.

- Post data Moody's wrote a piece on the current rating of Korea at Aa2 and

stable. They said the rating is supported by "very high economic strength, given

a diversified and competitive economy, with robust growth potential -- around 3%

over the next five years -- and high income levels." 

- Moody's certified the only constraints on the ratings potential are

geopolitical risks given the crisis in N. Korea. They wrote, "Uncertainty about

the possibility of a conflict has risen in recent months. Any potential military

conflict would damage the economy and weaken public finances, and may affect the

functioning of the government and the country's payment system."

- They later argued the severity of the impact of the geo-political risks on the

rating would depend on the length of conflict and undoubtedly the intensity of

it.