After Taiwan hit a snatch, Soros turned his gun and aimed at South Korea in the north.

South Korea, Hong Kong, Taiwan, and Singapore are known as the four Asian dragons. Its rise is also thanks to the support of the United States and Fuso.

In the early 1960s, South Korean President Park Jung-seok disagreed with the public and reconciled with Fusang, establishing formal diplomatic relations. Since then, South Korea has obtained a large amount of loans and new technologies from Fusang.

In addition, the South Korean government also launched its own five-year plan in accordance with the Soviet Union and obtained billions of dollars in financial assistance from the United States.

After continuous development, by the 1970s, South Korea's economy had already grown rapidly. In the early 1960s, South Korea's per capita income was only 100 US dollars. By the end of the 1970s, South Korea's per capita income had risen to 1700 US dollars.

In less than twenty years, per capita income has increased by 17 times, with an annual growth rate of 80%. Therefore, this economic achievement of South Korea is also called the "Han River Miracle".

The creator of this miracle was Park Jung-seok. He resisted the opposition, withstood the pressure, used dictatorial means, and vigorously promoted reforms, which enabled many five-year plans to be implemented smoothly.

In comparison, many places claim to be the owner, and even when building roads, they have to vote, evaluate, and acquire land... It will not be completed if it is not delayed for ten or eight years. Then any construction plan will be delayed.

For example, in Taiwan, the MRT connecting Taoyuan Airport and Taipei City was built for 20 years before completion, and the total length of this section of road was only 51 kilometers.

However, although Park Jung-seok's strength ensures the perfect implementation of the economic plan, it also creates a large number of high-debt, high-credit and low-profit chaebol enterprises, which has laid a considerable hidden danger for South Korea's economic development.

In the 1970s and 1980s, South Korea's economy faced bankruptcy due to excessive lending and long-term losses. In order to avoid these chaebols' bankruptcy, South Korea's bank repeatedly chose to provide the bank's bank with the bank's bank's bank.

In this way, although the harm caused by corporate bankruptcy is avoided, the hidden dangers are not eradicated, which has caused enterprises, banks and governments to bear a big burden.

The bad debt rate surged, the economy was insufficient, and the physical fitness gradually became rigid... Just like the performance of many state-owned enterprises after China's reform and opening up.

The difference is that state-owned enterprises belong to the state at least, while those chaebols in South Korea belong to the individual.

...

In the late 1970s, Park Jung-seok was assassinated and died. The climate in South Korea's Hokkien became warmer.

But South Korea's chaebols were not eliminated, but instead began to get involved in the governance of the country with their financial resources. Just like any capitalist country, capital controls politics.

After controlling the chaebols, the chaebols further monopolized South Korea's economy. After losing the shackles of the chaebols, these chaebols became more destructive.

Just like the consortiums on Wall Street, their destructive power is greater than that of the American Mansion.

In the 1990s, South Korea gradually relaxed capital controls.

Foreign funds flowed into South Korea in large quantities, like in the summer, a large amount of investment was made in South Korea.

South Korea's chaebol not only borrowed from its own banks, but also borrowed from foreign capital, and thus carried huge debts, laying the cause and effect for future decline.

However, due to the large inflow of funds, South Korea's economy not only did not decline, but instead showed a prosperous situation.

Just like shared bicycles, the market demand is not as high as expected, and the profit prospects are not optimistic. However, due to the continuous injection of funds, the shared bicycle market is extremely popular. At its peak, there were more than ten shared bicycle brands nationwide, and the market value rose to tens of billions of yuan.

But now that the trend has passed, everyone has seen how unreliable the so-called shared bicycles are.

It can be said that South Korea's current economic prosperity is largely due to borrowing.

Just like in "Dream of Red Mansions", the Yuan concubine returned to the province, on the surface, the flowers and brocades of the Grand View Garden were decorated with brocades, and the fire was cooking oil, which was extremely rich.

But in fact, because of this return to the province, the Jia family spent millions of taels of silver, which made the Jia family, which had already entered a recession, decline more and more. In the end, it was necessary to steal the body of Jia Mu to support the entire family's consumption.

...

Now, Soros sniped South Korea.

In order to avoid the impact of the fish, foreign capital naturally hurriedly withdrew from South Korea.

As a result, these chaebols in South Korea lost their loans and immediately fell into business difficulties. They also faced the dilemma of being collected by creditors.

South Korea's chaebols control South Korea's economy. In the 1980s, the top ten chaebols in South Korea accounted for 50% of the annual GDP. Samsung Group accounted for one-third of the GDP.

Once these chaebols collapse, South Korea's economy will collapse.

Before, South Korea's Mansion would provide them with a guarantee.

But this time, it is impossible for South Korea's Mansion to protect them.

First, South Korean citizens will not allow the primordial government to pay money to wipe the butts for these chaebols.

Just like during the subprime mortgage crisis, the American people did not welcome the Wall Street consortium.

Second, these chaebols were so traumatized this time. The leverage ratio of the top 30 chaebols was as high as 500%. For example, the leverage ratio of Zhenlu exceeded 3,000%, and the leverage ratio of Hanna exceeded 2,000%, which are very dangerous.

Leverage ratio refers to the ratio of equity capital to total assets in the balance sheet, which indirectly reflects the company's repayment ability.

Generally, at 100%, the company's repayment ability is relatively healthy. If it is more than twice as high, it is already dangerous.

In comparison, Taiwan's corporate debt ratio is only 85%, which is very healthy. This is also the reason why Taiwan suffered relatively small damage after being attacked by snipers.

The debts of the chaebol have caused the bad debts of South Korean banks to reach 27 trillion won.

South Korea's short-term foreign debt scale is 323% of its foreign exchange reserves, making it the country with the highest debt ratio in the world.

In other words, even if the South Korean Mansion is determined to save these chaebols, it is hard for a good cook to cook without rice.

Under this circumstance, South Korea's economy fell rapidly.

Among the top 30 chaebols, six chaebols declared bankruptcy, including the famous large groups such as Zhenlu, Kia, Sanmei, and Danong.

By the end of 1996, more than 30,000 companies in South Korea went bankrupt. Even the second largest chaebol in South Korea was forced to declare bankruptcy due to unfavorable debt repayment.

The announcement of this news shocked the South Korean people at a loss.

Because Daewoo is a symbol of South Korea, it is known as a "unsinkable aircraft carrier". But now, even the aircraft carrier is about to sink, so the South Korean people naturally cannot accept it.

Under such circumstances, although South Korea has claimed to be a developed country, it is still forced to seek help from the IMF International Monetary Fund.

This is also the first time in the past two decades that a developed country has asked IMF for help.

South Korea not only gave up all its face, but also was forced to accept the imf's harsh conditions.
Chapter completed!