Asian financial crisis
Also called: IMF crisis · Topic: Paths to Modernisation: Japan, China, Korea · NCERT: Class 11, Ch 7 "Paths to Modernisation"
Meaning
The Asian financial crisis was a foreign-currency crisis that hit South Korea and other Asian economies in 1997. In Korea it is often called the "IMF crisis". The country ran short of foreign money after trade deficits and heavy borrowing by its big business groups. It came only a year after Korea joined the OECD, the club of rich economies, in 1996.
Example
South Korea took an emergency bailout loan from the IMF. Ordinary citizens also joined the Gold Collection Movement, giving their own gold to help the nation repay its debt. In December 1997, Kim Dae-jung won the presidency, the first peaceful transfer of power to the opposition.
Don't confuse with
- Korean War (1950–53): This was the earlier war that left Korea dependent on US aid. It was not a financial crisis.
Related concepts
- Taiwan
- Cross-Strait relations
- Joseon dynasty
- Japanese annexation of Korea
- 38th parallel
- Korean War
- Park Chung-hee
- Export-oriented industrialisation
- Import substitution industrialisation
- Saemaul Movement