With key countries in the world economy spiraling toward recession, and even India and China panicking about domestic inflation levels, there’s one country in particular that still seems to offer good value in its equities markets, thanks to an economic outlook that combines decent growth and only modest inflation.

That country is South Korea.

We’ve talked about Korea several times before. But the truth is that it’s worth a closer look. So let’s begin our latest visit with a truly startling fact about this country and its economy: Both its exports and imports have grown at truly staggering rates recently.

Powerful Gains in Global Trade

In May alone, exports reached $39.5 billion, up 27.2% from a year ago. Imports were $38.5 billion, up 28.8% from a year ago. The sharp-eyed investor will notice one key point here: Although the balance of trade has deteriorated somewhat in the past year, exports still exceed imports. That’s important, to be sure.

Just as remarkable is the fact that this staggering growth in both trade factors hasn’t been caused by currency movements: The Korean won is down around 6% against the U.S. dollar over the past year, to its recent level of 1,019. That decline against the greenback has been caused by the increasing internationalization of the Korean economy, and its increasing importance in global trading patterns.

Politically, the last year has also been good for Korea. The pro-business candidate, Lee Myung-bak, won December’s presidential election, and his Grand National Party won a handy majority in April’s legislative elections.

This means economic policy is firmly anchored in a pro-business direction, after a decade of eccentric economic management whose most significant features were a steady increase in the size of government (though it is still substantially smaller than in the United States or most other rich countries) and a series of attempts to imprison the chairmen of the country’s major chaebol conglomerates. Hyundai Motor Co.