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.