In november 1997. when the asian financial crisis hit korea the country was plunged into deep recession in initial month 150 enterprises bankrupt and 10000 workers lost there job each day. now two years later the country has bounded back for contraction of 6% in 1998 to remarkable first three quarters of the year this extraordinary turn around represent one of the rapid succeedable financial stabliazations. the premeter of the market function such as industry rate exchange rate and prices all stabilized and this is encouraging sign that korea is overcoming its economic crisis. although well on the way to recovery korea is not congratulating self yet significant problems still remain the country's dynamicant leadership is not satisfied with return to previous growth pattern korea is now restructuring for new take off it is charming way a head. led by president Kim the korea people united there characteristic and determination this willingness to do whatever necessary under the present Kim's focused economic measures simultaneous development of democracy and market economy were cruiser to country's future. reform focused on four key area of the economy corporate financial public and labor sector because of reforms employment grow rapidly and biggerly signs of recovery began to apear with 18 month. the basic object of corporate restructuring is to address problems caused by wasteful duplication of investment in the past so that in the mid to long term korea companies internationally competitive on basis of there core competency to achieve this ambitious role government ways the financial practices of companies to international standards which is resorted far great transparency. cross loan guarantees between chained billions has been mostly eliminated this has led to greater independence of individual of billions changes were introduced making korea's system of corporate and government one of the best in the world in addition dept ratio will be reduced to 200% by end of this year giving companies sound financial restructure other steps included concentration on there core businesses and curving across ownership and unfaired inter group transaction. in the second half of 1999 the dept of DAEWOO group 86.4 trillion won presented new set up issues for country and creditors banks to face when government announced guranted payments 80% value of DAEWOO bonds in november many investors rushed to regain the bonds which plunged country to second financial crisis. when the day passed without any significant movement investors feared to turn to new components in government management economy and its ability to handle DAEWOO problem. one of the most complex dept workout in corporate history will result restructuring of DAEWOO's 12 key director creditor banks on 2002 financial institutions 317 bank has been closed or merged or otherwise exited from market. buyable banks in meanwhile have dressed settlement non-performing loans recapitalization and mergers. 64 trillion won in public funds were used to clean up and invigorate financial institutions as result the BIS ratio of the bank increased from 7% in 1997 to 9.8% as a June 1998. more transparent and responsible profit oriented management and supervision according to international standards uncertainties in financial system have been eliminated. the government has also taken the eraser to red tape nearly half of all the resistic regulations in the public sector have been removed and increasing transparency and boosting foreign investment privatization of 12 major companies is already underway an by november 1999 the government already earned 16.6 trillion won form sale of shares and assets the basic direction conformed by commission representing labor business and government has created more flexible labor market at any lay offs and introducing power releasing systems. previously militant labor unions who's actions were breaking law are developing more legal and responsible labor movement such progress is encouraging signal for foreign investors. with 99.8% of the total market now liberized range of foreign investment has greatly expanded in conformity of global standard last April progress deregulation of foreing exchange transaction began with measures which lead to full liberalization in the near future. Korea has been able to attract 10.2 billion dollars in foreign directed investment as a October 1999 the highest angle amount in the nations history. thanks to the strong leadership of president Kim Dae Jung and untied affords of the Korean people korea's economic recovery has been remarkable GDP growth recorded 9% for the first three quarters of the 1999, and expected to maintain sustainable grow in next year other major macro economic dictators are showing equally favor of the development including unpresedented low inflation late of first 10 month of 1999. korea's foreign exchange reserves has risen dramatically from near depression at the onset of economic crisis to more than 66 billion US dollars over large currece surplus and active capital inflows contributed at build up of reserves at the same time foreign exchange markets has stablelized since beginning of the year. in september korea became creditor of first time when loan to other countries surpassed its external depts based on these achievements korea was able to repay the entire 30.5 billion US dollars as depts borrowing from the IMF 9 month ahead schedule a significant improvement also has been achieved increased financial markets interstrate hits 30% in end of 1997 haves declined to single digit for the first time ever and stock market index comes stronger than was before the crisis. as the economy recovers more and more of the people were thrown out of the work are finding jobs again and unemployment rate decline 4.6% by October icking 8.4% in February. even though economy is recovering rapidly government depts is increasing due to the necessary use of public funds and cost of establishing social welfare system the government plan budget increased in next year lower than expanded rate and plans to achieve balance budget from 2004. the government is developing comprehensive and minute social welfare which will not drained on economy but which will provide security and way it ultimately benefits economy. the system is intended to minimize problems such as alienation of employed and low incomers which are exaggerated by economic crisis. korea has changed its hardware through its economic restructuring but to make the new system work effectively korea government is determined to establish software in terms by attitudes and practices appropriate and democratic market economy. in addition to foster sustain growth knowledge based society will be constructed through shift labor and capital and intenced manufacturing industries to those input and interlecture creative skills. our consulted affords by past half year and half with bold restructuring 4 key areas of financial public and labor sector has evoluted economic turn around which stunned world. this is the fruit of join affords of government and the people. however the job is only half is done reform must continue with unlaboring determination and drive. korea has been changed korea in corporate which operate like gigantic government has gone it is being replaced by more bibrant and fair afficiant korea. the new korea will be open and transparent society characterized by high level of trust between officials employers and workers it will be an dynamic country focus on several stunned competency it will be a carrying society which emphasis quality of life and provision of our productive welfare system. by 2010 korea's goal is to be 8th largest trading nation in the world the country's GDP is expected to rise 21 thousand dollars in the year 2010. 10 thousand dollars in 2000. during the next 10 years inflation will be maintained at 2% and employment will level around 3%. korea can only achieve this goal continuous performance of goal korea has learned from the past and recognize the way a head.