Korea's Economy
From the Issue
Korea's Economy Volume 26About Korea's Economy
Korea’s Economy is KEI’s annual journal publication dedicated to the key issues of the day for the Korean economy. Articles in Korea’s Economy are designed to give the casual, but informed reader insight into issues related to Korea’s markets and financial institutions, economic reform, economic relations with the wider world, and North Korea. It is published jointly each year with the Korea Institute for International Economic Policy.
East Asia is an area where real economic activities are closely linked. The brisk trade in goods and services among East Asian countries shows a well-integrated East Asian economy. Most trade by East Asian countries is cleared in U.S. dollars, however, which implies that, when foreign exchange shocks occur, countries in the region are highly vulnerable to financial crisis caused by foreign exchange market risks. Further, East Asia may also suffer from financial market collapse and economic recession. economic linkages within the region might, however, lead to the risk of crisis contagion. One example is the Asian financial crisis of 1997: the initial crisis in Thailand triggered contagion in other neighboring countries in East Asia. Financial instability originating from crisis contagion has a significant impact when operating in a regional economy.