Government intervention shielded Korea from global credit crunch

South Korea

A sharp decline in external funding led to a relatively modest decline in domestic credit offered by Korean banks, due to concentrated policy efforts by the government in 2008, according to researchers from the Bank of Korea (BoK) and the IMF.

In The Impact of Foreign Bank Deleveraging on Korea, Sonali Jain-Chndra of the IMF, and Min Jung Kim, Sung Ho Park and Jerome Shin of the BoK, say Korea "was hit hard by the 2008 global financial crisis, with the foreign bank deleveraging channel coming

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