Korea deserves its upgrade

The sovereign rating of South Korea should be upgraded immediately. Its present level of BBB/Baa2 is simply not consistent with the remarkable turnaround of its economy in the last year and a half. The country now has $82 billion in foreign exchange reserves, a 2% current account surplus and 1999 FDI capital inflows of $13 billion, allowing the country to be a $10 billion net external creditor. The ratios speak for themselves: less than 30% of its total liabilities are due in two years or less, and its forex reserves cover these liabilities by 200%.