Financial Crisis in South Korea

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Prior to the Asian financial crisis in 1997, there were "tiger economies". The term was used to refer to those countries - Hongkong, Singapore, Korea and Taiwan - that had reached impressive and robust economic growth over the 90s resulting from export-oriented businesses attracting foreign investment.


However, in July 1997 the so-called 'tiger economies' experienced a post-war Depression. Author Naomi Crane noted in "The Militant" that the Asian turmoil started in Thailand with the devaluation of its currency, the baht. By the end of August of the same year, there was a plunge in the Malaysian, Thai, Indonesian, Philippine and Hongkong stock markets from as high as 11% to 8%.
David Sanger's New York Times article entitled "The Overfed Tiger Economies" cited interesting improvements and economic changes in Asia. He expressed skepticism and sarcasm over the erection of the skyscraper in Kuala Lumpur, and the quick construction of infrastructure in Bangkok. He mentioned Thailand's satellite launch and construction of car plants and other mega-projects while expressing wonder as to the source of funding. It was said that East Asia was being supplied with enormous foreign investments amounting from $60 billion to $70 billion a year. The devaluation was caused by the fact that baht was being sold at high fixed rate against the US dollars, enough reason for the Thai government to run out of foreign exchange reserves. The consequences include scarcity of capital, devaluation of the baht, and an increase in interests on debts. ...
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