World Economy

Fears of Economic Crisis in S. Korea

Fears of Economic Crisis in S. Korea Fears of Economic Crisis in S. Korea

Deteriorations in jobs and other recent economic data are stoking fears of a crisis in South Korea, but experts say the economy is more likely to enter a long and gradual spiral downward, rather than a short-term, cyclical crisis, Yonhap reported. Youth unemployment, long-term unemployment, bankruptcy and corporate credit ratings downgrades are some of the indicators that have fallen to levels last seen in the Asian financial crisis in 1997-1998, which sent South Korea to near-bankruptcy. Some see them as reinforcing a popular theory that South Korea has a 10-year cycle of economic crashes—after the 1997-1998 crisis, a global financial meltdown triggered an economic crash in South Korea in 2008. Mindful of such concerns, Finance Minister Yoo Il-ho last week stressed the economy was not in a condition akin to the Asian crisis—locally referred to as the IMF crisis because South Korea was bailed out by the International Monetary Fund—or the 2008 crisis.