Watch South Korea

South Korea is quickly becoming a tempting investment destination. The Asian Dragon has seen some very bullish catalysts thrown its way over the last few weeks. The nation's GDP is predicted to grow by 5.75 percent through 2010. The countries debt is low with its balance sheet enjoying a current account surplus. This is in part to strong exports in the semiconductor and automobile sectors. In addition, South Korea may be about to get a promotion to developed market status from MSCI.

South Korean shares have rallied nearly 11 percent over the past three months, but are still are cheap by many metrics. Investors wanting to add the nation can do so with the iShares MSCI South Korea Index (NYSE: EWY). For investors wanting to play the nations higher growth stocks, the IQ South Korea Small Cap ETF (NASDAQ: SKOR) offers a way to tap its small cap stocks.