ABSTRACT
In December 1997, the (South) Korean economy was caught in the wave of turmoil of the foreign exchange crisis that eventually spread like wildfire throughout the Asian region. However, Korea has achieved a relatively quick and strong recovery from the financial crisis, thanks to supportive fiscal and monetary policies and progress in structural reform. Real GDP grew by 10.9 percent in 1999 and 9.3 percent in 2000. In 2001, however, the Korean economic recovery slowed down mainly due to the difficulty and delay in the restructuring process both in the public and private sectors.
