South Korea's Blue Chips Wielding Big Cash

Growth in South Korea makes it a good market for the long run. The 15 largest companies in Korea increased their cash by 50% last year, because reduced investment & capital expenditures coupled with higher profits. Samsung, the top holding in EWY with 18.3% of assets, saw its cash position climb nearly 90% to $10 billion. Number two holding in EWY, Posco (PKX), saw cash increase 80%.

These companies aren’t hoarding their cash though. Samsung is looking into investing in memory chips and Posco, already the world’s fourth largest steel maker, is looking to bid for Daewoo International. If it acquires Daewoo the steel maker could use its global sales network to increase exports and plausibly use its iron ore in Daewoo’s overseas projects.
Shihan Financial Group (SHG) has made strides to become a world-class financial group. Its cut costs and seems to be operating more efficiently, not to mention it has 16 billion in loose cash.
On the political side, the Obama administration has called for closer trade ties with South Korea. In the State of the Union he talked about doubling US exports to the nation. Tariff issues are still a concern for Congress but Obama seems hopeful to work them out to create US jobs.