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The 1997 financial crisis is a landmark for change in the methods of corporate restructuring in Korea. During the high-powered growth era prior to the event, the government had been in the center of both resource allocations and distress resolutions. With an advantage in information over the private sector, government authorities had engaged in the operational details of corporate businesses for the purpose of expediting economic development in a short period of time. This strategy had been very successful, yielding over 7 percent real annual growth for nearly 40 years with few serious catastrophes.
The 1997 crisis ended this prosperous era, exposing various systemic problems within the economy. With the high ratios of debt to equity, Korean corporations were expected to yield high profitability on their equity. However, the corporate sector had become less and less profitable since the early 1990s. The return on capital, on average, had been lower than its opportunity cost for almost ten years before the crisis. (The rest omitted)
경제위기와 기업도산(Crisis and corporate insolvency)
| Title |
경제위기와 기업도산(Crisis and corporate insolvency)
Similar Titles
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|---|---|
| Project Category | Development Cases |
| Material Type | Report |
| Author(Korean) |
조원동; 강동수; 김용균 |
| Publisher |
서울 : KDI 국제정책대학원 |
| Date | 2012 |
| Project | Development Cases |
| Series Title; No | Knowledge Sharing Program: 경제발전경험 모듈화 사업 |
| ISBN | 978-89-93695-07-6; 978-89-93695-06-9 |
| Pages | 74 |
| Subject Country | South Korea(Asia and Pacific) |
| Language | Korean |
| File Type | Documents |
| Original Format | |
| Subject | Industry and Technology < Entrepreneurship |
| Holding | KDI 국제정책대학원 |
| Supervisor | KDI 국제정책대학원 |
| Organizer | 기획재정부; 한국개발연구원 |
| Sponsor | 기획재정부 |
| Project Term | 2011-01-01 ~ 2011-12-31 |
| License |  |
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Resources
Crisis and corporate insolvency
Cho, Won-Dong; Kang, Dongsoo; Kim, Yong Kyun
/ 2012
/ Seoul
:
KDI School of Public Policy and Management
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