Since June 8th, 10, in order to increase foreign exchange reserves, the Bank of Korea launched the "Opening Foreign Exchange Account Campaign", and people began to deposit their foreign exchange into the bank spontaneously. Although many people think that the government's failed foreign exchange policy should not be borne by them, the Korean Enterprise Bank alone has raised more than 654.38 billion US dollars so far. A 63-year-old Korean woman has been the target of many media reports. "According to the newspaper, South Korea is short of US dollars. After traveling abroad 10 years ago, she brought home the remaining US$ 3,000," said the ordinary Korean.
In recent years, South Korea's foreign debt has increased sharply, reaching 400 billion US dollars, while short-term foreign debt (due within one year) is close to 654.38+080 billion US dollars, compared with only 80 billion US dollars two years ago. At the same time, South Korea's foreign exchange reserves are only $240 billion.
Looking back on 1997 Asian financial crisis, South Korea is the most seriously injured dragon among the four little dragons in Asia. At that time, South Korea's foreign exchange reserves were only a pitiful 3.9 billion yuan. In February, 65438+, when it unconditionally received $57 billion from the International Monetary Fund (IMF), many international media called Seoul "the city forgotten by Santa Claus". At that time, in order to save their country on the verge of bankruptcy, within 1 month, 3.49 million Koreans donated gold with a total value of $210.3 billion, and some even went bankrupt. "Ask not what your country has done for you, but what you can do for your country." This sentence by American President Kennedy seems to be more suitable for Koreans at that time.
Iceland in Asia?
So, will South Korea repeat the mistakes of the Asian financial crisis 1 1 years ago?
South Korea's economic scale ranks 13 in the world, and its banking system is open, almost completely exposed to the global economic environment. The loan-to-deposit ratio of Korean banks is the highest in Asia, close to 1.40%. Since the outbreak of the financial crisis, the won has plummeted to the lowest level of 1.997, which is undoubtedly the weakest currency in the Asia-Pacific region, which greatly increases the cost for Korean banks and governments to repay foreign currency debts. Due to the sharp devaluation of the currency, many small and medium-sized enterprises have faced bankruptcy.
The Financial Times reported in June 65438+1October 65438+July that in the face of this global financial crisis, South Korea may become "the first victim in Asia". In an article published in 654381October 9, The Wall Street Journal said that South Korea may become "Iceland in Asia". S & amp；; P) Seven domestic financial institutions in South Korea were included in the negative observation.
Jong su Kim, a commentator of South Korea's Central Daily News, recently wrote that the real crisis is approaching, saying that the long-term stagnation of South Korea's real economy and the risk of financial crisis lurking inside South Korea are the real crises that need to be faced at present.
The South Korean government is extremely annoyed at the suggestion that South Korea may go bankrupt. At the beginning of June, 5438+00, the government made a special statement that some foreign media distorted the facts or exaggerated when reporting the financial market in South Korea, and even many reports commented at will without correctly analyzing the information, saying that false reports from foreign media would bring fatal blows to the Korean economy.
South Korea's Chosun Ilbo published an editorial on 16, saying that foreign media's hype about South Korea's "economic sinking" was rampant, but it failed to provide a basis to support South Korea's crisis theory, and the quoted data was inaccurate. Li Changyong, vice chairman of the Korea Finance Committee, recently denied the possibility of another financial crisis in South Korea.
Daniel, an economist at Moody's Economic Network in the United States, also believes that the financial crisis is unlikely to have a big impact on South Korea. "I have to use the word mini," he said. "This is not the Asian financial turmoil, but a small pill, although it tastes equally bitter."
10 10 19, the Korean stock market rose slightly after the South Korean government announced a package of rescue plans, but it fell all the way at the opening on the 23rd, and fell by 7.5% after the close, hitting the lowest level in three years. Today, the Korean Stock Exchange also suspended trading for 15 minutes.