International Monetary Fund and The Economy of South Korea
Abstract
We examined how the International Monetary Fund affects the economy of South Korea. How it is influenced by the World Bank, whether it prevents any development or help. We have also analyzed how a healthy population can strengthen the economy of South Korea, and for whose help has the South Korean government asked to improve the health care system.
South Korea and its development
South Korea is a developing country. But there were hard times for its economy and we are going to have a look on organizations that helped this country and some events that played a big role in the history of the economic development of South Korea.IMF and its influence on the economy of South KoreaSouth Korea's economy experienced a serious decline in 1997. It was a serious shock for the world economy as a whole. The reason for this was the rapid growth of the economies of the "Asian tigers", which contributed to a large inflow of capital to South Korea, the explosion of the real estate market and as a result - economic recession.Let’s consider the example of these events, how IMF and the World Bank helped or hindered the social, economic and political development of South Korea.Korea’s companies had about 66 billion $ of short-term debts, and part of it (20 billion$.) was paid before the end of the year.
Further, the attack on the currency that was organized by Soros caused panic on the financial market. It contributed the nullification of gold reserves. As a matter of urgency, the plane with emissary, Kim Kihuan, flew from Seoul to Washington. As a result, South Korea has received a loan of 21 billion dollars from the IMF on favorable terms. Money had been issued by 7%, when Korea had 20% per annum. If we analyze, we can say that USA was not a benefactor who hase given the money at low-interest rates. The crisis in the financial market was made specifically and disappeared gold was invested in US government bonds with a yield of 4%. In fact, the money that had previously lost returned in Ukraine. The IMF has served as a filter for the US government to get a residue of 3%.But there are other views on the IMF loan. Programs that have been applied in relation to the economy of South Korea showed signs of success, such as:
1. Increasing exchange rate flexibility.
2. Opening and maintaining lines of external financing.
3. Closure of non-viable financial institutions.
4. Increasing foreign participation in the domestic financial markets.
These programs have been adapted and changed as the economic conditions in Korea. It continues to evolve now. The Asian crisis is still unfolding and new violations cannot be excluded.World BankThe history of the World Bank's cooperation with South Korea dates back to 1995. In 1972 the World …
