Imf In Korea Essay Research Paper The

Imf In Korea Essay, Research Paper

The subject matter that will be discussed within this paper are the effects of the IMF (International Monetary Fund) in relation(s) to South Korea and other neighboring Asian countries in the same economic distress. It will also tie into the use of media and other aspects of international communications Korea and the United States used to cover the crisis.

The economic crisis of South Korea has hit many of the citizens of Korea very hard. Many companies went bankrupt and with that many people lost their jobs. This economic crash was not only felt by the Koreas living in Korea, but also by the ones who live abroad. Many international students had to return back home because they could no longer afford the expenses with studying abroad. Store owners in Korea who lived in the United States would more than likely lose their businesses. Overall, the economic crash is effecting our United States economy greatly. It began with the devaluation of currency in Thailand in July of 1997. Afterwards, many other Asian countries were to follow such as the Malaysia, Philippines and of course South Korea. Media coverage of the economic situation was and still is now, being highly covered. All the major news stations are covering how this situation is having adverse effects to not only the Korean nation, but the United States also. Many goods that the United States export to Korea and other Asian countries cannot be bought due to the lack of money.

As the crisis has unfolded in Asia, the IMF has become, at least for this brief moment in history, almost a household name. But even if the institution has become more well known, its role in Asia and more broadly in the world economy is not widely understood. Despite the back-to-back corporate failures and resulting financial jitters, Korea has asked the United Nations to help with their crisis. The involvement of the United Nations has increased the media coverage of the Asian crisis. The actions they take are look with scrutiny by people that the crisis directly or indirectly affects. The IMF has supplied South Korea with $57 billion dollars to help rebuild Korea’s economy. The status between Korea and the IMF is change constantly everyday, In February Korea asked the IMF to lower the interest rates to rollover some massive debt they had.

IMF is labeled all over the cities of Korea, department stores advertising $5,000 jackets for $1,0000 because of the “cold wave of the IMF.” This type of sales pitch is given in most every shopping place possible. It is even done commercially on television, to promote sales. Television dramas and sitcoms would have a story line incorporating the economic crisis. Korea will not let this situation go unnoticed to its citizens. Like any other country they are trying their hardest to get themselves out of this terrible situation.

The International Monetary Board reconfirmed its optimistic outlook for the Korean economy. “Helped by the strong economic fundamentals, including brisk foreign shipments, the Korean economy is estimated to grow by 6.5 percent next year, with the current-account deficit narrowing to about $10 billion from $23.7 billion in 1996, the IMF said.” Yoo, Cheung-Meo. An IMF mission, at a news conference after winding up its 10-day assessment of the Korean economy, said the nation’s inflation rate in 1998 will remain below the 4.5-percent level targeted for this year. “Judging from our in-depth reviews, the long-term outlook for the Korean economy is very bright,” Charles Adams, assistant director of the IMF’s Asia and Pacific Department, said in a news conference. After a period of rapid growth, the Korean economy is now in the phase of cyclical restructuring. “Thus, the economy will shortly bottom out and enter an upward curve, said Adams, who headed the six-member IMF mission to Korea.” He also stated that the Korean economy is in a serious crisis, the IMF economist said that a recent string of corporate bankruptcies cannot be defined as a crisis, but as part of a normal market economy. “Korea is already a big, mature economy that can easily handle individual corporate bankruptcies. Some firms make right decisions and others make wrong ones, taking the course of bankruptcy. That’s an element of the market economy,” said Adams. Regardless of financial troubles at some conglomerates, Korea’s domestic and external economic fundamentals are very sound.

Media coverage of the economic crisis in the United State is not as widely covered as it is in Korea. The Korea society has to let the people know what state their economy is in, so they incorporate the media as a “information highway”. Many other nations such as Great Britain, Japan, China, and other bordering Asian countries publicize the crisis going on in Korea. It directly affects the citizens in Korea, but it indirectly affects people in all the other nations. This forms a basis to begin talks with other nations to help eliminate the problems in Korea.

A high-level delegation from the European Union visiting Japan and South Korea began talks in Tokyo aimed at kick-starting an Asia-wide economic revival. European Union officials say the delegation will tell Japan, as Asia’s economic leader, it must take urgent steps to boost domestic demand, clean up the banking sector and open up its markets to more Asian exports. The European Union delegation was also expected