South Korea 's Economic Crisis

1534 Words Mar 14th, 2015 7 Pages
Between 1990 and 1996, South Korea experienced strong economic growth ever since South Korea was separated from North Korea. As the data of South Korea economy from World Bank web provides, Average growth rate was around 8 percent and inflation rate averaged 5 percent. Moreover, unemployment rate was stable below 3 percent (citation use footnote or endnote). Until 1997, Korea was one of miracle East Asian countries that grew up incredibly faster than that of other Asian countries. Others believed that it is impossible for South Korea to experience financial crisis due to its outstanding economic growth ever since they declared independence from Japan. After South Korea began its industrialization in 1970, there were two major economic crisis in Korea economic history. Many countries including South Korea were heavily effected by largest oil crisis in 1979. 18 years hence, the most undesirable economic crisis occurred again in 1997, widely known as South Korea IMF Crisis. IMF(International Monetary Fund) is international organization for promoting international monetary cooperation; it encourages stable exchange rate, facilitates the expansion and balanced growth of international trade, and assists with poverty reduction among the member. In short, IMF makes action only when the worst economic scenario occurs. 9/11 terror is considered as one of the tragic event in 21st century. South Korea’s IMF crisis is considered similar to that of 9/11 to South Koreans. It is…
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