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

Chopra, Ajai; Kang, Kenneth; Karasulu, Meral; Liang, Hong; Ma, Henry; Richards, Anthony J.

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

IMF Working Paper No. 01/154

94 Pages Posted: 31 Jan 2006

See all articles by Ajai Chopra

Ajai Chopra

Peterson Institute for International Economics

Meral Karasulu

International Monetary Fund (IMF) - Monetary and Exchange Affairs Department

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 also been made in stabilizing the financial system and addressing corporate distress, and 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.

Keywords: Korea, Asian financial crisis, IMF

JEL Classification: E6, F3, F4

Suggested Citation: Suggested Citation

Chopra, Ajai and Kang, Kenneth and Karasulu, Meral and Liang, Hong and Ma, Henry and Richards, Anthony J., From Crisis to Recovery in Korea Strategy, Achievements, and Lessons (October 2001). IMF Working Paper No. 01/154, Available at SSRN: https://ssrn.com/abstract=879974