This lecture examines the factors behind the remarkable economic recovery of South Korea from the Asian financial crisis that had gripped the country during late 1997. It examines the restructuring efforts undertaken by the Korean government in the corporate, financial, labor market, public enterprise, and foreign investment sectors, and evaluates the results as well as the effectiveness of such reforms.
The paper concludes that the Korean structural reforms yielded positive economic results by stabilizing the currency and banking markets, and by substantially improving economic growth in Korea. However, Korea faces many challenges, including geopolitical risks, export dependence on the U.S. market, and sustaining the pace of corporate reform over the long term.
