Financial Crisis in Korea: Analysis of economy in Korea and comparison with Eastern South Countries

Abstract

East Asian countries were experienced the financial crisis in 1997 and have shown significant and outstanding recovery with well-organizing economic reforms since 1998. Due to the increased globalization of financial crisis, Asian financial crises tend to become more severe and contagious. This paper focuses on the Korean economy, which experienced the hardest crisis hit as well as most one of the most successful recovery from 1997 crisis, and points out economic relation between eastern Asia with Korea and analysis of economic policy from the 1997 and 2008 crises to help prevent from the reoccurrence of similar financial crises and economic downturns in the future.