Organizer and Chair: Kongdan Oh, Institute for Defense Analysis
Discussants: Byong-Kook Kim, Korea University; Hong N. Kim, West Virginia University; Doowon Lee, Yonsei University; Kyung-sup Chang, Seoul National University
The financial crisis that swept through Asia in 1997 proved to be both a curse and a blessing to Korea. On a social level, the crisis was a bitter experience for the proud Korean people, who within a year of gaining OECD membership saw their per capita income fall from $11,000 to $6,000 with the loss of value of the Korean currency. Thousands of middle class workers lost their jobs and became suit-wearing homeless people taking refuge in subway and train stations.
On a political and economic level, the crisis proved to be a blessing by forcing acceptance of reforms that had previously been pursued in a half-hearted manner. In the face of great pain and discouragement, Koreans responded admirably to the crisis. The bold and comprehensive reforms launched by the newly-elected Kim Dae Jung government were accepted by virtually all segments of society. By 1999, the crisis had been addressed and long-term reforms were underway, although there remains a long way to go. This roundtable proposes to examine the continuing impact of the financial crisis, how the Korean people have been able to successfully cope with the crisis, and what challenges of reform lie ahead.