Pyongyang, January 12 (KCNA) — Rodong Sinmun today comes out with a signed article on the catastrophic financial crisis driving South Korea into a turmoil.
The author of the article says:
In November last year, a financial crisis exploded in the South Korean financial market which had suffered from the chronic foreign currency shortage caused by colossal amounts of foreign debts.
Its consequences are very catastrophic.
The crisis hit production, circulation, consumption and other economic sectors of South Korea. Feeling uneasy at the crisis and the scarcity of foreign currencies, many people including investors withdrew their capital or bought foreign currencies en masse. The price of the dollar has skyrocketed and the stock price drastically dropped. As a result, all money transactions were suspended at the financial market, and all sectors, units and factors of the South Korean economy were paralyzed.
Experts foresee that 1.5 to 2 million people are likely to lose their jobs in South Korea this year.
Last year’s waves of bankruptcies of big businesses equal to or larger than the Hanbo group in scale have turned banks related to them into deficit-ridden ones.
The point at issue is that south korea is unlikely to get out of the present financial crisis in spite of the rescue funds and “trusteeship” by the International Monetary Fund (IMF). No sign of recovery was seen at the foreign exchange and stock markets in December last year when bailout funds valued at billions of dollars were supplied by the IMF.
The South Korean won has continued to depreciate to more than 2,000 against one dollar. A daily average of 45 enterprises have gone bankrupt, unable to repay their debts.
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