Why South Korean bonds are luring buyers despite its currency's poor run

Foreign investors piling into South Korean bonds have made them the second-best performers in emerging Asia in the past six months. The coming week may give them more reason to keep buying.

Seen as a haven from this year’s sell-off in emerging-market assets, the nation’s debt has drawn $45.6 billion from global funds this year. A weakening won -- the currency is Asia’s worst performer this quarter -- and a November rate increase by the Bank of Korea, its first in a year, have failed to deter overseas buyers.

That’s because the nation’s economic outlook still remains uncertain, with any additional rate