The Political Economy of the Korean Financial Crisis
In: Review of international political economy: RIPE, Band 7, Heft 2, S. 197-218
ISSN: 0969-2290
Examines two clusters of domestic political factors that contributed to South Korea's difficulties during the Asian financial crisis. First, a combination of selective liberalization with close government-bank-business relations contributed to the investment boom & excessive leveraging that made the Korean economy vulnerable to external shocks. Second, how politically generated uncertainty in an election year, compounded by features of the party system, resulted in a delayed response to problems in the financial sector & in dealing with the International Monetary Fund is examined. It is concluded that these delays contributed to the length & depth of the crisis. 3 Tables, 30 References. Adapted from the source document.