Title The Korean financial crisis of 1997 : onset, turnaround, and thereafter / Kyu-Sung Lee

Published Washington, D.C. : World Bank : Korea Development Institute, ©2011

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Description 1 online resource (xx, 449 pages) : illustrations Series World Bank e-Library. Contents Machine generated contents note: 1. The Unfolding of the Korean Financial Crisis -- 1996: A Year of Uncertainty -- The Hanbo Bankruptcy and the Degradation in External Creditworthiness, January -- March 1997 -- A Monetary Lull in Financial Markets, April -- June 1997 -- A Looming Crisis in Financial Markets, July -- September 1997 -- Onset of the Financial Crisis and the Request for an IMF Rescue, October-November 1997 -- Notes -- 2. Origin of the Crisis -- Divergent Views of the Crisis -- The Macroeconomy and the Financial Crisis -- Korea's Structural Weaknesses and Vulnerabilities -- The Risks of Capital Liberalization -- The International Financial Architecture and the Financial Crisis -- Lax Crisis Management in Korea -- Notes -- 3. Overview of Korea's Postcrisis Responses -- Crisis Recovery and Policy Challenges -- The Implementation of Postcrisis Measures -- Notes 4. Initial Responses to the Crisis, December 1997 -- Actions by the IMF, December 3, 1997 -- Korea: Memorandum on the Economic Program -- Actions Prior to the IMF Standby Arrangement -- Banking Reforms -- Averting National Insolvency -- Notes -- 5. Securing Foreign Currency Liquidity and Laying the Groundwork for Reform and Restructuring, December 1997 -- April 1998 -- Securing Foreign Currency Liquidity -- Capital Market Liberalization and the Expansion of Foreign Investment -- Laying the Groundwork for Structural Reform -- The Intensifying Credit Crunch and Mounting Unemployment -- Notes -- 6. Restructuring Led by Business Closures and the Push for Lower Interest Rates, May-June 1998 -- The Recognition of Economic Reality -- The Focus of Corporate and Financial Restructuring on the Closure of Failing Businesses -- Lowering Interest Rates and Easing the Credit Crunch -- The Contracting Real Economy and Deepening Labor Unrest -- Notes 7. Completion of First-Phase Restructuring and Policies Aimed at Boosting Potential Growth, July-September 1998 -- Economic Outlook and Policy Challenges, Second Half of 1998 -- The Completion of the First Round of Restructuring -- Expanded Unemployment Measures and Labor Union Resistance to Restructuring -- The Russian Moratorium and the Fate of the Won -- Policies for Robust Growth -- Notes -- 8. Getting the Economy Back on Track and Quickening the Pace of Restructuring, October -- December 1998 -- Policy Challenges and the Shifting Economic Landscape -- Instability in International Financial Markets and the Government Response -- Quickening the Pace of Restructuring -- Policies Aimed at Economic Revival -- 9. Restoring Financial Stability and Realizing Positive Economic Growth, January-June 1999 -- The Economic Policy Agenda for 1999 -- Forging Ahead with Restructuring -- The Investment Grade Rating and the Supply of Foreign Exchange to Markets -- Restoring Calm to Financial Markets and Resuming Positive Growth 10. The Settlement of the Daewoo Shock and the Expanded Economic Recovery, July-December 1999 -- Policy Challenges and Responses during the Second Half of 1999 -- Strategies for the Transition to a Knowledge-Based Economy -- The Collapse of the Daewoo Group and Restoring Calm to Financial Markets -- Pressing Ahead with Structural Reform -- Economic Hardship among Low- and Middle-Income Households and the Government Response -- Accelerating Economic Recovery and the Transition to Net Creditor Status -- 11. Korea's Economic Renewal: Challenges and Solutions for the Transition to the Next Level -- Questions about the Korean Economy -- Diagnosis of the Korean Economy -- The Challenges Ahead in Korea's Economic Revival -- The Reform of Korea's Economic System -- Note Summary This book chronicles how Korea dealt with and overcame the crisis over time. The book is organized into eleven chapters. Chapter one outlines the troubling financial market conditions at home and abroad before the crisis. Chapter two then delves into the origin of the crisis and offers analyses on the shortcomings of the Korean economy and the instability of the international financial system. In chapter three, policy measures the government executed in the wake of the onset of the crisis are described and analyzed. Chapter four probes the steps taken to reduce the risk of sovereign insolvency in the face of the cool market reaction to the initial package of crisis response measures announced by the International Monetary Fund in December 1997. Chapter five describes the background within which the government established the institutional framework necessary for corporate, financial, and labor market restructuring between December 1997 and April 1998. The government efforts to secure additional foreign currency liquidity through the markets and to devise initiatives to counter the massive unemployment are discussed in detail. In chapter six, the situation during May and June 1998 is explored with a focus on the closure of nonviable corporate and financial companies and the efforts to drive down interest rates and revive credit flows. This is followed, in chapter seven, by an analysis of the first phase of financial sector restructuring, which started in the third quarter of 1998, and the measures adopted to shore up potential growth and cope with the pressing problem of unemployment. Chapters eight and nine deal separately with the restructuring of the top five chaebols (the large family-controlled and family-run groups that dominate business in Korea), the economic stimulus packages applied during the fourth quarter of 1998, the efforts to restore financial market stability and economic growth, and the initial phase of foreign exchange liberalization measures, which were implemented during the first half of 1999. Chapter ten then discusses the situation during the second half of 1999, with a particular focus on the collapse of the Daewoo business group, including the steps taken to contain the resulting fallout, as well as measures aimed at expanding the economic recovery. Chapter eleven, the final chapter, offers a diagnosis of the Korean economy, along with an analysis of the policy implications and the responses for the future Bibliography Includes bibliographical references and index Notes Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL English digitized 2011 HathiTrust Digital Library committed to preserve pda MiAaHDL Subject Financial crises -- Korea (South) -- History -- 20th century POLITICAL SCIENCE -- Economic Conditions. BUSINESS & ECONOMICS -- Economics -- Comparative. BUSINESS & ECONOMICS -- Economic Conditions. BUSINESS & ECONOMICS -- Economic History. Economic history Economic policy Financial crises Finanzkrise Wirtschaftspolitik Wirtschaftspolitisches Ziel SUBJECT Korea (South) -- Economic policy -- 1988-2002 Korea (South) -- Economic conditions -- 1988-2002 Subject Korea (South) Südkorea Genre/Form History Form Electronic book LC no. 2010047700 ISBN 9780821382394 082138239X 9780821385500 082138550X 1283065940 9781283065948 9786613065940 6613065943

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