Foreign exchange reserves have increased more than tenfold since last year. Domestic interest rates are now below pre-crisis levels, and the rate of bankruptcies has declined sharply from the levels of last year. There has also been considerable progress in the repair and recapitalization of your financial system. However, the costs of the crisis have been high in both economic and human terms. Economic growth declined sharply last year.
Unemployment is at historically high levels.
Most Koreans, even those fortunate enough to keep their jobs, have seen their earnings and income decline sharply. Despite major increases in government spending for a strengthened social safety net, many Korean families have endured great hardship. Hopefully these hardships will ease somewhat in coming months, but the need for social stability will remain paramount as Korea moves forward. The level of public debt has increased substantially as a result of necessary deficit spending by the Government and the issuance of government bonds to repair the financial sector. The immediate future now looks brighter than at any time in the past several months.