Dangerous Markets
Managing in Financial Crises
Chapter One
Introduction to
Dangerous Markets
On January 1, 1997, South Korean President Y.S. Kim proudly announced
that the nation's economy had grown by 7.1 percent in 1996. While
slightly less than the growth rate in 1995, the new numbers confirmed that
this Asian tiger-the world's eleventh largest economy with such powerhouses
as Hyundai, Samsung, and Daewoo within its borders-was still a
formidable financial contender in the global economy.
To be sure, Korea's currency was stable. It benefited from a slight
budget surplus. Unemployment was only 2.5 percent. Korea's average debt
rating by Moody's was A-1. Yet, on the sunny day of Kim's pronouncement
few observers realized that the dark clouds of a financial storm were already
looming on the horizon. There were problems in the real economy, where
industry-wide value des ... read full excerpt from Dangerous Markets: Managing in Financial Crises ebook
