Korea's Unemployment Insurance in the 1998 Asian Financial Crisis and Adjustments in the 2008 Global Financial Crisis
Kim, Sung Teak | May 2010
Abstract
This paper analyzes the impacts of the 1998 and 2008 financial crises on the Korean labor market. We study the historical background of the Korean Employment Insurance System and the change of labor policies from the 1998 Asian financial crisis to the current 2008 global financial crisis. While it is arguable to say that the expansion of the social welfare system in the Republic of Korea is main source of difference between the two crises, it is certain that the social welfare system is one of the influential factors that helped overcome the problems of the global financial crisis. From an analysis of the Korean experience on the two financial crises, we can deduce the following. First, financial stability at the national level is important to stabilize employment. Second, countries need to develop a social welfare system ahead of any economic crisis. Third, layoffs should be the last resort to lowering labor costs, even at a time of recession. Finally, cooperation and coordination among government departments are crucial to overcome the crisis in labor market.
Citation
Kim, Sung Teak. 2010. Korea's Unemployment Insurance in the 1998 Asian Financial Crisis and Adjustments in the 2008 Global Financial Crisis. © Asian Development Bank. http://hdl.handle.net/11540/3802. License: CC BY 3.0 IGO.Keywords
Economic Crisis
Economic Efficiency
Economic Policies
Regional Economic Development
Job Evaluation
Evaluation
Crisis
Unemployment
Economic cooperation
Gross domestic product
Employment
Economic forecast
Financial crisis
Labor economics
Regional economics
Turnover
Economic survey
Job analysis
Labor turnover
Show allCollapse
Citable URI
http://hdl.handle.net/11540/3802Metadata
Show full item recordUsers also downloaded
-
CAREC Transport and Trade Facilitation Strategy 2020
Asian Development Bank (Asian Development Bank, 2013-10-24)The Central Asia Regional Economic Cooperation (CAREC) Transport and Trade Facilitation Strategy (TTFS) was refined to account for changes in the CAREC Program since 2008, particularly expanded membership and the new strategic framework (CAREC 2020). The refined strategy also reflects lessons learned during the initial phase of implementation, aiming to more efficiently and comprehensively achieve ...The Central Asia Regional Economic Cooperation (CAREC) Transport and Trade Facilitation Strategy (TTFS) was refined to account for changes in the CAREC Program since 2008, particularly expanded membership and the new strategic framework (CAREC 2020). ... -
Inclusive Cities
Steinberg, Florian; Lindfield, Michael (Asian Development Bank, 2011-04-01)Slums, informal settlements, and dilapidated inner-city tenements are problems that many cities in Asia and the Pacific struggle with while their economies try to modernize and develop. Their existence puts at risk not only these economies but also poor people occupying vulnerable areas that climate change and natural disasters will only make worse. Slums are being addressed in countries in Asia and ...Slums, informal settlements, and dilapidated inner-city tenements are problems that many cities in Asia and the Pacific struggle with while their economies try to modernize and develop. Their existence puts at risk not only these economies but also ... -
Diagnostic Study of Accounting and Auditing Practices in the Republic of the Fiji
Asian Development Bank (Asian Development Bank, 2002-12-01)While the Fiji' accounting and auditing arrangements generally compare well with those of other countries, improvements could be made in two broad areas: Preemptive legislative and institutional actions could strengthen financial reporting arrangements. Since the Fiji lack appropriate professional certifications for bookkeepers and accountants, the study recommends establishing appropriate Pacific-wide ...While the Fiji' accounting and auditing arrangements generally compare well with those of other countries, improvements could be made in two broad areas: Preemptive legislative and institutional actions could strengthen financial reporting arrangements. Since ...
Related items
-
The Financial Crisis: A Wake-Up Call for Strengthening Regional Monitoring of Financial Markets and Regional Coordination of Financial Sector Policies?
Winkler, Adalbert (Asian Development Bank, 2010-02-15)How much can regional monitoring of financial markets and coordination of financial sector policies contribute to preventing and mitigating financial crises? This paper reviews and compares the experiences of Europe and Asia, which have taken different routes and have achieved different levels of regional financial integration. The analysis suggests that the harmonization and coordination of regulation ...How much can regional monitoring of financial markets and coordination of financial sector policies contribute to preventing and mitigating financial crises? This paper reviews and compares the experiences of Europe and Asia, which have taken different ... -
Financial Crisis and Crisis Management in Sweden. Lessons for Today
Jonung, Lars (Asian Development Bank, 2009-11-15)This paper gives an account of the Swedish financial crisis covering the period 1985–2000, dealing with financial deregulation and the boom in the late 1980s, the bust and the financial crisis in the early 1990s, the recovery from the crisis and the bank resolution policy adopted during the crisis. The paper focuses on three issues: the causes and consequences of the financial crisis, the policy ...This paper gives an account of the Swedish financial crisis covering the period 1985–2000, dealing with financial deregulation and the boom in the late 1980s, the bust and the financial crisis in the early 1990s, the recovery from the crisis and the ... -
Social Consequences of the Financial Crisis in Asia: The Deeper Crisis
Knowles, James C.; Pernia, Ernesto M.; Racelis, Mary (Asian Development Bank, 1999-07-15)The Asian financial crisis has quickly led to marked contrac¬tions in gross domestic product (GDP) and employment in the affected economies. GDP shrinkages in 1998 ranged from nearly 14 percent in Indonesia to 0.5 percent in the Philippines. In turn, these have resulted in adverse social consequences. Although there are signs that the worst of the financial crisis is over and the crisis economies ...The Asian financial crisis has quickly led to marked contrac¬tions in gross domestic product (GDP) and employment in the affected economies. GDP shrinkages in 1998 ranged from nearly 14 percent in Indonesia to 0.5 percent in the Philippines. In turn, ...