ABSTRACT

The Korean economy1 has recovered markedly from the financial crisis of 1997 through concerted efforts to restructure its corporate and financial sectors. However, even as it managed to come out of the crisis with a better institutional foundation and macro fundamentals, Korea continues to face new challenges in maintaining its growth momentum and social integrity. Indeed, the financial crisis brought Korea into a new, distinctive phase of economic and social development, and the country is expected to continue to undergo deep and rapid structural changes, as it has over the past eight years.