Try To Talk About The1997Financial Crisis And Its Influence In South Korea

A wide range of high-strength financial crisis borke out around the Asian countries and regions in the1990s. However, the Korean economy failed to withstand the test of the hardest hit.Domestic economy relying too much on short-term foreign debt, early opening up financial market, lacking of the supervision of financial institutions, the family enterprises prevailing, infinite expansion of the business model, and government countermeasure carrying out in vain. In addition, the rapid development of global economy resulted in the outbreak of the financial crisis occuring in South Korea.The Kim Youngsam Government took the corresponding measures to deal with the financial crisis. Nevertheless,because of a variety of reasons most of measures could not achieve the goal. The Kim Youngsam Government was not able to control the domestic economic situation. Meanwhile, the South Korea presidential election was approaching. Kim dae-jung acceptedThe rigorous aid terms of the international monetary fund after he becoming next Korean President, and promoted a four departments-centered economic reform.Because of financial crisis,large enterprises collapse. The problem of youth unemployment is the most serious one. The quantity of informal employee is increasing. the inauguration of a stressful job, informal employee are inferior to formal worker both in salary and benefits, casual laborers is also increasing. Increasing unemployment brought many negative problems. One of the obvious problems is that parents pay more attention to education. The amount of investment students and parents put into education has increased year by year.study load is very heavy. The amount of students studying overseas, including low age overseas students is very huge. Students and parents suffer great pressure. Unemployment generates serious income gap and causes serious social problems in Korea. Serious social polarization exists between high and low income rank, the middle class atrophy obvious turned into the low-income people. Polarization phenomenon exists not only in high and low income level, the large enterprises and small and medium-sized enterprises, education, etc are also obvious have the the phenomenon of polarity.In this paper, author elaborates the cause of1997financial crisis in South Korea and the government’s policy in solving the crisis.this paper tries to show a more comprehensive and complete financial crisis development process, and reveals the root cause of the financial crisis, thus further reveals financial crisis to the influence of the south Korean society. Domestic scholars for South Korea1997financial crisis mainly focuses in the cause of the crisis and adjustment of four departments structure, therefore we want to contemplatively elaborate the the negative consequences of financial crisis.