History Of Bank Of Kore Central Bank Project Essay

Following the Korean War and the rebuilding of their societies, both North Korea and South Korea’s economies have depreciated and fluctuated. With their different economic systems, one using the military and the other using trade, they both have received different results.

They targeted specific industries for development and the first were textiles and light manufacturing then to iron, steel, and chemicals(Yu, Lew). By joining the “Organisation for Economic Co-operation and Development”(Yu, Lew) to advance to the next level of economic growth(Yu, Lew). South Korea obtained all parameters; political, military, and economic from the U.S and recovered from the Asian financial crisis in 1997. On the other hand, North Korea developed a government having a highly centralized political system. North Korea developed into the most isolated and controlled state showing no sign of both political and economic

The events that led to the financial crisis had begun some seven years before in the year 2001. This was the year when the country almost went to a recession period. The main reason was that the shares of

The state controls all means of production, and the government sets priorities and emphases in economic development. From the 1940s to the 70s focused more on postwar reconstruction and the development of heavy industries, especially chemicals and metals, until there agriculture goods were lacking so they tried to improve the quality and quantity of the goods to trade with countries. In the 90s when the Soviet Union collapsed North Korea minorly suffered since the Soviet Union was one of its main countries to trade with. After that North Korea was still suffering from a food problem in which the food was scarce and

There have been few financial crises in the United States. The Global Financial Crisis of 2008 to 2009 was the most recent and before that was The Great Depression of the 1930s. The Global Financial Crisis actually began in 2007 when prices of homes tanked. It not only affected the U.S. but it also affected economies overseas. The entire investment banking industry, some of the biggest insurance companies, enterprises government used for mortgage lending, top mortgage lenders, the largest savings and loan companies, and two of the largest commercial banks were many of the financial sectors affected by the crisis. “Banks stopped making loans, share prices plunged throughout the world and most of the world plummeted into a recession” (The Financial Crisis of 2008: Year In Review 2008,” 2009, para. 1).

You can still expect to see the financial crisis around the world often, but the really bad ones occur about once every decade. “In the early 20th century, most financial crisis was associated with banking panics.” When people would notice that the economy was down they would all try to run and take their money out of their banks, and with everyone trying to get their money the banks started to go bankrupt. With the banks starting to fail, it was the start of a domino effect. The stock market started the economic downturn when it crashed , people started to lose their jobs, homes, and families, and life savings.

CenTrust, first called Dade Federal Savings and Loan, was founded in 1934 during the Great Depression and eventually became a stalwart of the South Florida business establishment. By the early 1980s, Miami had a corporate community that any city would envy. The companies were large and growing. They contributed mightily to local causes. They virtually invented a skyline where none existed as late as the early 1980s. CenTrust Bank and David Paul gave huge sums of money and much effort toward founding the New World Symphony in the 1980s. But the local corporate world was shaken badly at that time. In South Florida, home of fragile physical, social and economic climates, big business became an endangered species.

Economic Interactions & Development: After WWII, the state of South Korea became an independent state, this sudden loss of Japan as trade partner during WWII resulted in major economic issues for this new nation (Just to be clear, Japan controlled the Korean peninsula during the second world war; this made the now annexed state of Korea a colony of Japan in which the Japanese government provided services and trade). Up until the Korean War (1950-1953), the economy of South Korea was in ruins with their only support in the form of American economic aid. After the Korean war, attempts were made by the new government to industrialize the nation 's labor but the economy of South Korea stagnated and political instability prevented any further growth until a new government took its place.

Although the people of North and South Korea speak the same language, they have many different ideas and cultures that have developed after the two countries split apart. The market economy of South Korea has done a lot to improve the overall economy of the country, and the gross national product has been on the rise. The economy of North Korea has had many challenges, largely due to the self-reliant and closed economic system that they use. Overall, the government and economy of South Korea has been more prosperous and successful than North Korea. Much of this is due to the fact that in North Korea, they have a completely closed and centrally planned economic system which tends to inhibit their growth. The fact

This has to be taken in the context of the considerable global recession that has been in play since 2008, the results from which North Korea was largely shielded due to its insularity. In general terms, the North Korean economy is still far poorer than most other Asian nations.

There are faults within both communism and capitalism, but sometimes one can even effect the other. This paper will explore what the possible connection is between North Korea’s communistic economy and how it may have impacted South Korea’s capitalistic economy.

There were family-owned enterprises in Korea in the period before 1961 but the particular state-corporate alliance came into being with the regime of Park Chung Hee (1961-1979). Park modeled this arrangement on the zaibatsu system which developed in Japan during the Meiji Era. There were significant differences between the zaibatsu and the chaebol, the most significant of which was the source of capital. The zaibatsu were organized around a bank for their source of capital. The chaebol in contrast were prohibited from owning a bank. The Park regime nationalized the banks of South Korea and could channel scarce capital to industries and firms it saw as necessary for achieving national objectives. The government-favored chaebol had special privileges and grew large. This gave the impression of economic success for the chaebol that was not always valid. In some cases chaebol grew not because they were profitable but merely because they could borrow vast funds. When the international economy took a downturn these debt-ridden businesses were in trouble. In 1999 one quarter of the manufacturers in South Korea did not earn enough to meet the payments required for their debt.

Manufacturing continued to grow rapidly in the 1980s and early 1990s. In recent years, Korea's economy moved away from the centrally planned government-directed investment model toward a more market-oriented model. Korea bounced back from the 1997-98 Asian financial crisis with some International Monetary Fund assistance, which based largely on extensive financial reforms. According to the U.S. Department of State website“ …these economic reforms, pushed by President Kim Dae-jung, helped Korea maintain one of Asia's few expanding economies, with growth rates of 10% in 1999 and 9% in 2000. The slowing global economy and falling exports slowed growth to 3.3% in 2001, prompting consumer stimulus measures that led to 7.0% growth in 2002. Consumer over-shopping and rising household debt, along with external factors, slowed growth to near 3% again in 2003. Economic performance in 2004 improved to 4.6% due to an increase in exports, and remained at or above 4% in 2005, 2006, and 2007.”3 Now with understanding of South Korea’s economics we can move on to our last venture where we will sum up our journey through the orient.

with the help of the two nations and the international community whom provided food aid until 2009, North Korea was back on track to bettering its economy. “In 2002, the government introduced measures to adjust wages and prices, open commercial markets selling food and other items, and alter agricultural and enterprise policies. These created severe inflation and the government backtracked on these changes” (New Zealand MFAT, 2014). Conversely, inter-Korean interactions have resulted in the creation of a free-trade zone between the North and the South. The Kaesong Industrial Complex (KIC) has successfully established about 120 South Korean businesses to operate on North Korean labour and tax benefits since early 2004. The economy once again encounters a financial setback; with the government’s attempt to wipe out private wealth using the redenomination of a new currency in 2009. The creation of the currency dramatically impacted inflation rates, markets and derailed regime projects, resulting in the latest demise for the North Korean economy.

The Asian financial crisis started in Thailand with the collapse of the Thai baht in July 1997 and quickly spread to the rest of the region. Just before the Thai baht collapsed in July 1997, it had been the target of