Friday, December 2, 2005

Pre-crisis economy (Part III)

From early 1990 the Korea government faced intense pressure from US, the IMF and large chaebol who wanted to have their hands freed. By mid 1990 large firms can invest as they pleased, regulation on domestic bank activity reduced and foreign banks and investors can run short-term or "hot" money into and out of Korea. This has fueled investment which was later over-heated.

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