S. Korea, 3 other MIST countries to emerge as next investment target: report

By Hwang Doo-hyong WASHINGTON, May 19 (Yonhap) -- South Korea and three other emerging economies will become the next target of international investors after the BRICs despite concerns of inflationary pressure, a report said Thursday. "Many investors will focus on the growing economics of the emerging markets," Probitas Partners, a placement agency, said in a report titled Private Equity Deskbook 2011. "Fundraising for Asia and Latin America rebounded significantly in 2010 and is on track to continue strong in 2011. The MIST countries are likely to be the next group of emerging market targets after the BRICs." MIST includes Mexico, Indonesia, South Korea and Turkey, while BRICs refers to Brazil, Russia, India and China. "At the beginning of 2011, the economist who coined the acronym BRICs created another one covering the next group of rising stars," the report said. "Interestingly, Mexico and South Korea were originally considered as possible inclusions in what would later become the BRICs, especially South Korea given its advanced GDP per capita ranking." South Korea's per capita growth domestic product is forecast to rank second only after the United States by 2050, the report said, citing statistics from Goldman Sachs. The Probitas Partners' report follows a similar World Bank report, which predicted Tuesday South Korea will be among six emerging economies that will account for more than half of all global growth by 2025, causing a major economic power shift. The others are Brazil, China, India, Indonesia and Russia. Probitas Partners echoed the World Bank in directing attention to Asia. "Four of the eight BRIC and MIST countries are in Asia, with China clearly the largest factor in these markets," it said. "The public equity markets of the BRIC and MIST economies exhibited strong performances over the last cycle, a reflection of their continued GDP growth." The placement agency still warned against the growing inflationary pressure. "A number of these markets began to turn down in early 2011, even before the turmoil in North Africa and the Middle East began, driven mainly by concerns that continued strong GDP growth in those countries would continue to drive increased inflation," it said. "A continued rise in oil prices would have mixed results on these economies, with those countries with significant oil reserves benefiting while others would be negatively impacted."