The ongoing opposition in the working class to the government will only intensify the political crisis in the lead-up to next year's elections. But the recovery is more apparent than real, dependent as it is on high volumes of exports, particularly to the US, and increased government spending. As the deep concerns over the failure of the huge Daewoo corporation indicate, the entire banking and financial system remains laden with bad debts and is very fragile. Surpassing anyone's expectations of just a year ago, the South Korean economy is experiencing a certified boom. Factories churning out everything from computer chips to cars are scrambling to keep up with soaring export orders and hot domestic demand.
Stores are jammed.
But stray into the financial sector, and the jubilation over the real economy quickly dissipates. The torrent of good news has not been enough to halt a steady, three-month slide in Korean stocks, down 20 percent since their July 9 peak. Some foreign bankers even warn that a new financial crunch could lurk around the corner, the type of crunch that could destroy consumer confidence and unravel the economy. If, in spite of all the glowing media reports, the South Korean recovery does begin to unravel then the government of Kim Dae Jung will certainly do the same. The WSWS invites your comments.