Country stunner appearing in art house cut (5,5)

I believe the answer is:

south korea

'country' is the definition.
(I know that South Korea is a Asian country)

'stunner appearing in art house cut' is the wordplay.
I cannot quite see how this works, but
'stunner' could be 'ko' (I've seen this in other clues) and 'ko' is located in the answer.
'house' could be 'h' and 'h' is found in the answer.
This explanation may well be incorrect...

(Another definition for south korea that I've seen is " Country with capital Seoul".)

I've seen this clue in The Independent.

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