Economic Impacts Of Government Response To The US Subprime Mortgage Crisis In China And South Korea

After the2008global financial crisis, the world economy is now undergoingfinancial crisis in Europe. We are facing unprecedented global financial crises one afteranother, leading to the biggest economic crisis since the Great Depression.In economic history, different crisis around the world in the past were not causedby one or two reasons, but by a variety of complex factors.The main purpose of this paper is to compare the influence of the SubprimeMortgage Crisis in China and South Korea, and corresponding country policies. First,we describe the impact on the housing finance market in South Korea and explain thesubprime investment status data of finance institutions in Korea. Then, we analyzeKorean government’s policy features with regard to finance stability policy, foreigncurrency stability and expanded fiscal policy for economic growth.Second, we research the impact of Subprime Mortgage Crisis on the Chinesefinancial capital market. Through the relevant materials, we describe the impact onstock market for commodity economy, foreign investment, foreign trade, and economicgrowth. Also, we use exports and enterprise support policy, financial market stabilitypolicy, and economic support policy to explain the Chinese government’scorresponding policy to handle Subprime Mortgage Crisis.Third, in order to compare and analyze the corresponding policy result offinancial crisis for two countries, we summarize and describe the characteristics of thecorresponding policy in China and Korea.