Things have become ugly and especially panicked in Korea. Before this is all over there will be other countries that endure serious problems.

In the last year the KOSPI, the benchmark equity index in South Korea is down a little over 40%. That's not so bad relatively (that is a shocking statement) but in that same time the currency, the won, is down 50% versus the greenback, most of that decline coming in the last couple of months. 

Korea, as you no doubt know manufactures and then exports a lot of stuff all over the world. Additionally there is not much in the way of natural resources. This paints a picture of a very cyclical country. It also helps to know a little but of history; earlier in the decade there was a problem with consumers over-extending themselves on credit (sound familiar?).

At times things like being very cyclical and eager consumerism will probably make South Korea an attractive investment destination but I am doubtful it can offer superior diversification versus other countries. This type of unsophisticated, kick the tires look at a country is easy to do, can save time from digging to deep into a country that turns out not to be compelling and ultimately allow for creating more diversification.

In my opinion trying to dissect the various attributes of a country and how those attributes would fit in with the rest of the portfolio is a vital part of top down analysis. 

Anyone real interested and trying to catch a turn around could try with the iShares Korea ETF (AMEX: EWY [1]), Posco (NYSE: PKX [2]) or SK Telecom (NYSE: SKM [3]). EWY is around $29 down from $75, PKX is at $59 down from $190 and SKM is at  $18.40 down from $33.

To be clear I have no plans to make a narrow bet on South Korea.