Comparison Of The Two Financial Crises In Korea: Background, Reasons, Economic Impact And Coping Strategies

Nowadays against the background of economic and financial globalization, the economy of one country has much relied on world economy increasingly. U nder this circumstance, the global financial crisis caused by the subprime mortga ge crisis from the U.S not only shows the vulnerability of its financial system, but also hit the real economy, encumbered worldwide economy. Korea had experi enced the Asian financial crisis in 1997 and had no option to sign an agreement for IMF financial aid.There have been numerous financial crises all over the world until now. Not only their different causes induced various economic effects and changes, bu t also their corresponding polices are diverse. This paper provides a comparative analysis on Korean two financial crises:the Asian financial crisis and the globa 1 financial crisis and presents their backgrounds, causes and effects on Korean ec onomy. For this purpose, at first, it is essential to examine various financial crisi s theories and divide actual financial crises into several groups of type. Afterwar ds, we have a comparative analysis on backgrounds, causes, consequences, econo mic effects and policies of Korean two financial crises and discern common grou nd and differentia.This paper provides profound comparative analysis on Korean two financi al crises and aims to take a beneficial lesson for the new Korean financial mark et. Furthermore the aim of the analysis is to forecast and prevent another financi al crisis in the future. This paper includes six chapters.Chapter One is the openness of this paper. It introduces research backgro und, summary of similar research, theoretical research, and research objective, the method of research and logic frame.Chapter Two presents the analysis of causes and consequences of Korean two financial crises. The first two parts represent each cause and consequences and last part provide the comparison on above contents.Chapter Three analyses the external environments of Korean two financial crises.Chapter Four makes an analysis on economic effects of Korean two fina ncial crises and an empirical analysis of the economic effects. First part presents effects on foreign exchange, financial market and cooperates.Chapter Five presents the analysis of polices of Korean two financial cris es:Currency and fiscal policy.Chapter Six sets up several polices of development of Korean economic and financial market.