Shadows of Asian Financial Crisis in South Korea

South Korea is sending citizens another round of stimulus in response to the economic challenges created by the pandemic.

Finance Minister Hong Nam-ki opposed this call and suggested a smaller assistance package. Prime Minister Kim Boo-kyum backed up this position by adding that the government could not afford another round of assistance.

The latest round of universal disaster relief moved forward as late as September of this year and public assistance packages to-date have been broadly popular.

Countries with comparable debt profiles such as Indonesia, Malaysia, and South Korea experienced a sudden outflow of US dollars. Unable to finance short-term loans, several flagship companies in affected countries collapsed, with consequences reverberating up and down the value chain.

The Asian Financial Crisis still casts a heavy shadow over South Korea because it was incredibly traumatic. Unemployment during the turmoil tripled and 80 percent of households experienced loss of income.