ABSTRACT
It already has been more than two years since the beginning of the economic crisis in Korea. This crisis, which is unprecedented in its scope and depth in the modem history of Korea, has brought about many changes to the Korean economy. Initially, it was a liquidity crisis of foreign exchange, caused by the refusal of foreign creditors to renew the short-term loans Korean financial institutions owed. It soon created a credit crunch in the financial sector of Korea, however, which devastated the corporate sector and the labor market. Even though the foreign exchange-shortage crisis has been stabilized, structural adjustments in the financial and corporate sectors are still going on. In the meantime, a massive number of people have lost their jobs because of these restructuring processes, and it is expected that they will remain unemployed for a considerable time.
