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East Asian Economic Review Vol. 6, No. 2, 2002. pp. 157-190.

DOI https://dx.doi.org/10.11644/KIEP.JEAI.2002.6.2.99

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Recovery from a Financial Meltdown: The Political Economy of Crisis Management under the Kim Dae-Jung Administration

Author

Shalendra D. Sharma

University of San Francisco

sharmas@usfca.edu
Creative Commons Attribution License

EAER is an open access journal distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license.

Abstract

In Korea, the IMF-supported program, approved in late 1997, focused on financial sector restructuring, corporate governance, capital account liberalization, labor market reforms and trade liberalization. As in Thailand, it soon became clear that the IMF program underestimated the severity and deIn Korea, the IMF-supported program, approved in late 1997, focused on financial sector restructuring, corporate governance, capital account liberalization, labor market reforms and trade liberalization. As in Thailand, it soon became clear that the IMF program underestimated the severity and depth of the crisis. It fell upon the newly-elected government of Kim Dae-Jung to deal with both the crisis and the IMF. This paper illustrates how the Kim Dae-Jung administration deftly dealt with the grave challenges it faced. Korea's remarkable economic recovery, is in large measure, due to the government's prudent handling of the numerous economic challenges it faced. This paper examines the Korean government's management of the crisis－documenting both its achievements and the challenges ahead.

JEL classification: F53, G01, G32, O1, O53

Keywords

Korean Economic Reforms, Financial Crisis, the IMF, Kim Dae-Jung

Language

English

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