The Korean crisis--a year after

• Published in: Korea observer Vol. 30; no. 3; p. 397
• Main Authors: Kim, Youn-Suk, Koo, Hyeng Keun
• Format: Journal Article
• Language: English
• Published: Seoul Institute of Korean Studies 01.01.1999
• Subjects: Banking; Commercial banks; Companies; Consumption; Cost control; Debt; Displaced workers; Economic conditions; Economic crisis; Economic development; Economic models; Economic reform; Economic statistics; Equity; Foreign investments; Growth rate; Homeless people; Housing prices; Indexing in process; Industrial development; International monetary fund; Investments; Korean language; Layoffs; Macroeconomics; Manufacturing; Merchant banks; Middle class; Moral hazard; Nonperforming loans; Pain; Panics (economics); Politics; Public opinion; Social impact; Social reform; South Korea; Stability; Unemployment; United States > US
• ISSN: 0023-3919; 2586-3053

The average debt-to-equity ratio is approximately 400% for Korean companies, 519% for top 30 Korean Chaebols, whereas the average ratio is 86% for Taiwanese companies and 154% for US companies. [...]Korean Chaebols' interest payment was relatively larger than their international competitors. [...]a large amount of debts (about 20 billion dollars) lent by Korean banks became non-performing (see table 5). [...]the government has been able to get the public support which is absolutely necessary to carry through the reform. The social impact of the financial crisis now threatens the stability of the Korean society. [...]it is imperative to enact policies to contain the social costs which the crisis has imposed on Korea.