Empirical Study On South Korea’s Responding To Financial Crises

Korea was one of main injured states during the Asian financial crisis in 1997 and the global financial crisis in 2008.Korea maily depended on bailout by international financial institutions such as International Monetary Foud(IMF)when it shocked by crisis which started from Asian countried especially Thailand;at the same time,it had to adjust its economic structure by carrying out tight monetary policy and fiscal policy.Korea paid a big price for recovering from the depression.However,korea promotes the soundness of its financial institutions so as to continue its industrial upgrading with a great efforts in a decade.Though Korea was not a surviver in 2008 globle financial crisis triggerd by American subprime martgages,it did have a better porfermance in coping with the crisis,and it was out of the crisis shadow soon.Korea’s experiences in these two crises is worth to be studied.There are many research literatures on the reasons and the disposal of crisis about Korea during 1997 but a little of analysis on Korea performance in 2008.The policies and measurements taken by Korea government for dealing with these two kinds of crises within two decades,of course,are great differences.What are the progresses?There is not much attention paid to the question either in domestic or outside of Korea.This paper analyzes Korea’s macroeconomic policies,financial bailout policies,structural adjustment in financial and industrial sectors by method of campared analysis,in order to learn the lessions and obtain some implications from the experience.It will provide reference to Korea itself and other developing countries for their crisis precaution and management.The rest of the paper is orgnized as follows.Chapter one discribes the the background of the two crises and.the conceptual fromwork is discussed and presented in chapter 2.While chapter 3 and 4 investigated the economic situations in Korea before and after Asian financial crisis in 1997 and globle financial crisis in 2008 and how Korea confronted and coped with the crises by identifying the progress in policies and strategies.Chapter 5 conludes the paper.