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===1990s and the Asian Financial Crisis=== [[File:South Korean bonds.webp|thumb|upright=1.2|South Korean bonds {{legend-line|#CD2E3A solid 3px|50 year}} {{legend-line|#0F64CD solid 3px|10 year}} {{legend-line|#56C1FF solid 3px|2 year}} {{legend-line|#000000 solid 3px|1 year}} ]] For the first half of the 1990s, the South Korean economy continued a stable and strong growth in both private consumption and GDP. During the [[1997 Asian financial crisis]], after several other Asian currencies were attacked by speculators, the Korean won started to depreciate in October 1997.<ref name="a" /> The problem was exacerbated due to non-performing loans at many of Korea's merchant banks. By December 1997, the IMF had approved a US$21 billion loan, that would be part of a US$58.4 billion bailout plan.<ref name="a" /> By January 1998, the government had shut down a third of Korea's merchant banks.<ref name="a" /> Throughout 1998, Korea's economy would continue to shrink quarterly at an average rate of β6.65%.<ref name="a" /> and South Korean chaebol [[Daewoo]] was dismantled by the government in 1999 due to debt problems. [[General Motors]] managed to purchase the motors division. Indian conglomerate [[Tata Group]] purchased the trucks and heavy vehicles division of Daewoo.<ref name="a">{{Cite journal |title=Recovery from a financial crisis: the case of South Korea |url=http://findarticles.com/p/articles/mi_m0DKI/is_4_2001/ai_84799965/?tag=content;col1 |year=2001 |journal=Economic & Financial Review |format=w |last1=Koo |first1=Jahyeong |last2=Kiser |first2=Sherry L. |access-date=5 May 2009 |url-status=dead |archive-url=https://web.archive.org/web/20111108023544/http://findarticles.com/p/articles/mi_m0DKI/is_4_2001/ai_84799965/?tag=content%3Bcol1 |archive-date=8 November 2011 }}</ref> Actions by the South Korean government and debt swaps by international lenders have contained the country's financial problems. Much of South Korea's recovery from the 1997 Asian financial crisis can be attributed to labour adjustments (i.e. a dynamic and productive labour market with flexible wage rates) and alternative funding sources.<ref name="a" /> By the first quarter of 1999, GDP growth had risen to 5.4%, and strong growth thereafter combined with deflationary pressure on the currency led to a yearly growth of 10.5%. In December 1999, President [[Kim Dae-jung]] declared the currency crisis over.<ref name="a" />
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