South Korea's stocks and bonds have evaded the worst of the regional market rout, but can the so-called 'land of the morning calm' keep its cool?
Despite a history of sharp market swings, overseas investors view the country differently from other emerging economies, Bank of Korea Governor Kim Choong Soo told CNBC in a recent interview.
(Read more: Is a 'flash flood' back into emerging markets next?)
"Foreigners will find the Korean market a little more stable," he said. So far, he appears to be right.
Stocks in the country, dubbed the "land of the morning calm" in a poem by Indian poet Sir Tagore, have dropped less than 2 percent so far in August, outperforming the MSCI Emerging Markets Index's more than 2 percent fall, as well as equities in Indonesian and India, which have tumbled more than 13 percent and over 5 percent, respectively.
In the same period, the Korean won has fallen about 0.7 percent against the U.S. dollar, compared with the Indian rupee's more than 8 percent drop and the Indonesian rupiah's more than 6 percent slide.
Compared with its regional neighbors, South Korea has also maintained relatively sound macro fundamentals, Kim said.
"Korea has a relatively substantial amount of current account surplus," Kim noted. "The growth rate may not be that high but (it's) reasonably high, considering the external environment," he added, citing a growth target of 2.8 percent this year which he calls "not an ambitious target."