In late 1997 the bubble burst, banks pulled out, demanding immediate repayment of some $60billion in short-term loans which nearly pushed Korean banking system to bankruptcy.
On reaction banks cut loans to highly indebted domestic corporations, forcing them towards brink of insolvency. Korea then turned to IMF for help to pay its foreign creditors and control of Korean economy was handed over.
IMF took advantage of the situation. Instead of restoring control over captital flows (like Malaysia) IMF used the opportunity to destroy what remained of its East Asian model and replaced it with a market-driven neoliberal system.