From Crisis to Recovery in Korea: Strategy, Achievements, and Lessons

IMF Working Papers, October 1, 2001

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Canonical URL: From Crisis to Recovery in Korea: Strategy, Achievements, and Lessons

Authors: Kenneth H Kang, Hong Liang, Henry Ma, Anthony J. Richards, Ajai Chopra, Meral Karasulu
Published: October 1, 2001
Series: IMF Working Papers
DOI: https://doi.org/10.5089/9781451857238.001

This paper reviews and draws lessons from the stabilization and reform program that Korea implemented in response to the 1997-98 crisis.
The economy recovered quickly from the deep recession in 1998 and its vulnerability to a balance of payments crisis has been reduced sharply.
Significant progress has been made in stabilizing the financial system and addressing corporate distress.
Wide-ranging reforms have made Korea’s economy more open, competitive, and market driven.
Notwithstanding these achievements, more needs to be done before the soundness of the corporate and financial sectors is firmly established.

Rapid recovery from the deep recession in 1998.
Sharp reduction in vulnerability to a balance of payments crisis.
Stabilization of the financial system and addressing corporate distress noted as significant progress.
Structural reforms increased openness, competition, and market orientation of Korea’s economy.
Caveat: remaining work needed to firmly establish soundness of corporate and financial sectors.

From Crisis to Recovery in Korea: Strategy, Achievements, and Lessons - WP/01/154
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