The Korean crisis--a year after

The average debt-to-equity ratio is approximately 400% for Korean companies, 519% for top 30 Korean Chaebols, whereas the average ratio is 86% for Taiwanese companies and 154% for US companies. [...]Korean Chaebols' interest payment was relatively larger than their international competitors. [...]a large amount of debts (about 20 billion dollars) lent by Korean banks became non-performing (see table 5). [...]the government has been able to get the public support which is absolutely necessary to carry through the reform. The social impact of the financial crisis now threatens the stability of the Korean society. [...]it is imperative to enact policies to contain the social costs which the crisis has imposed on Korea.