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| KOREA'S RAPID RECOVERY FROM THE GLOBAL CRISIS |
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Sound Macro Fundamentals Lead to Rapid Recovery of Korean Economy
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| Sound fundamentals in Korea’s public and private sectors enabled the nation to escape the fallout from the global recession far faster than most analysts predicted. The lessons learned from the 1997 currency crisis laid a foundation for many of the fundamentals. As a result, the government had ample reserves to prop up the economy, and corporations had deep pockets to not only weather a decline in key markets but to also position themselves to pick up assets at discount. |
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| Jeon Hyo-Chan |
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Key to Korea’s Rapid Recovery: Swift and Bold Government Response
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| Korean officials responded to the global financial crisis with swift recalibration of fiscal and monetary policies. Interest rates were lowered 3.25% in just five months; bank lending was supported; currency swaps were arranged; and aggressive fiscal stimulus was injected. Consequently, the downturn from the financial turmoil was largely contained to only six months, allowing the Korean economy to regain its footing after the first quarter of 2009. |
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| Lee Eunmi |
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Korean Firms Come Out Winners from Global Crisis
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| Korea’s top companies withstood the global financial crisis and recession better than most of their global peers. SERI’s Corporate Competiveness Index, geared especially for use in emerging economies, found substantial improvement in terms of internal resources i.e. human resources and capital structure. The global rebalancing toward emerging economies and quickness in responding to change should keep Korean companies moving upward. |
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Strong Korean Export Performance Based on Emerging Economy Demand
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| Korean exports weathered a severe pullback in global trade in
2009 to eke out a modest gain while others were in the red.
The performance was paved in the preceding years by tapping
the rising incomes of emerging economies to offset falling
sales in industrialized nations. With the emerging markets able
to recover much faster than debt-laden advanced economies,
Korea exporters, especially parts and material suppliers were
positioned to ride the comeback. |
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| Rhee Tae-Hwan |
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