Go to content

Issue Report

Collection of full-length papers and in-depth analysis of economic and management issues.

Korea's Economic Recovery and International Cooperation

Korea's Economic Recovery and International Cooperation

CHOI Woo-Sock

May 1, 2000

Download Korea's Economic Recovery and International Cooperation PDF email Print


The Korean economy has experienced both quantitative and qualitative changes on an unprecedented scale. At the end of 1997, the economy fell victim to a currency crisis after being directly hit by the aftermath of the currency crises of Southeast Asian countries and had to be bailed out by the IMF. However, the nation started to break out of the crisis in the second half of 1998 and began to recover briskly at the beginning of 1999.

You can plainly see how dynamic the change of the economy was from the fact that the GDP growth rate recorded 5% in 1997, -6.7% in 1998, and 10.7% in 1999. Still, more than 8% growth is expected this year.

On June 12, a summit meeting between South and North Korea will be held for the first time since Korea was divided into two. This will greatly contribute to the relief of tension and the solidification of peace on the peninsula. Using the summit meeting as a catalyst, economic cooperation between the South and North is expected to speed up.

These are all in startling contrast to the dark and gloomy circumstances of two years ago. We are now even in a situation where the concerns have shifted to the possibility that the extremely quick economic recovery, widespread optimism and resulting complacency throughout the whole society may lead to yet another crisis.

For full text (8 pages), click the PDF icon on top.
Go to list