Korea Depression

2005-2007

Korea is now facing trade defict. Weak dollar further worsens the situation. As seen since last year, prices for raw material like oil still keep going. While the North Korea's nuclear crisis is getting serious, the Korea government continues to invest heavily in North Korea along with the sunshine policy. For the bright side, Korea tries to heighten cooperation with China and Japan proposing FTAs.

2007-2009

China's economy is booming with the prospect of its 2008 Beijing Olympic games. Huge swath of foreign direct investment comes to China. By the time when Olympic games are held, China's overall competitiveness is honed to the point that it poses a serious threat to Korea's pivotal industries such as automobil, electronics and IT. China plays a host role in many conferences and industrial fairs. As a contrast to this, Korea experiences competitiveness weaking. The North Korea's nuclear problem is resolved when the North Korean government gives up the A-bomb. As a result, Korea is much more involved in the North Korea's help.

2009-2011

Spurred by the successful Olympic games, China's economy is humming. As the living standards of Chinese people are improved and unprecedented numbers of Chinese want western-styled life style, signs of inflation emerge and prices of raw material are skyrocketing. Korea's economic situation is workening as it lose its major markets to China such as the U.S.,the E.U. China gains back its market from Korea in electronics, automobiles, mobile phones and shipbuilding as China's economy becomes sophisticated.

2011-2013

The FTA among Korea, China and Japan is signed. Because Korea is sandwitched much more tightly in technologies and prices by China and Japan, Korea's economy is faltering. The benefits of the free trade go to China and Japan because China is catching up Korea with technologies and Japan is still enjoying technology prowess. To curb its inflation pressure, China increases interest rates. Its effects are devastating for Korea because China is the largest trade partener to Korea and the interest hike dries out what demands are left in China. As a result, hordes of Korea's small and medius size business go under. Though saddled with its own economic malfunction, Korea does not have other option but go on helping the North Korea.

2013-2015

Burdened with North Korea and low demands, even big Korean companies feels crises. Despite all the help from Korea, Kim JongIl's regime falls. A lot of refuges come to Korea, aggravating the situation. To make the matters worse, Korea's flag companies, Samsung and Hyundai motors are bought respectively by Chinese and Japanese companies. Without many bread-earners, Korea runs short of foreign currency. And enters the second IMF crisis