Reforma priemyselnej a obchodnej politiky - cesta riešenia finančnej krízy juhokórejskej ekonomiky

Reforming of the industrial and trade policy - the right way for the financial recovery of the South Korea economy

Peter Baláž and Gu Suh Yong

Politická ekonomie, 1999, vol. 1999, issue 5

Abstract: For the past three decades, South Korea has remained one of the fastestgrowing economy in the world. Even with the financial crisis since end of1997 to mid-1998, this country continued succesful by developmnet of strongeconomic fundamentals. The causes of financial crisis were generallyconcentrated in two main areas: influence of structural factors inherent inKorean capitalism and unsustunaible deterioration of macroeconomic results.As is well known, ratio of short term debt was extremely high. The totalforeign debt amounted to about USD 150 bill. as of end of 1997. Thefinancial panic caused liquidity crunch that stemmed from the sudden shiftin the market expectations and confidence. After the Korean government'sdecision to accept the Bailout program of IMF and rescue financialpackage, the economy has been undergoing significant changes in mostimportant spheres. There were concentradet to the area of the activities offinancial and banking institutions, restructuralization of industrialpolicy, adaptation processes of various activities of leading businessconglomerats - chaebols (merging). OOn the other hand many experts calledattention to the need for changes to the global financial system. The maininternal point of the sucess of the Reform pprogram depends on the abilityto change the industrial and export structure of doemstic economy and createthe favourable developing space for foreign investors. The danger offinancial crisis is in its expansion across Asia during past year andfinally in beginning the reverbate world-wide.

Keywords: financial crisis; industrial policy of cheabols; progress in structural reform; the recovery of positive export position; global aspects of financial crisis (search for similar items in EconPapers)
Date: 1999
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DOI: 10.18267/j.polek.72

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