Recent financial crisis attributes to international factors which include collapse of financial system from major developed countries like United States; on the contrary, Foreign exchange crisis in past was caused by domestic factor such as lack of liquidity in foreign exchange and risk management of both corporation and financial institutions.

While recent domestic economy shows relatively sharp decrease in foreign demand, slow decrease was observed in domestic demand. After Foreign exchange crisis, the South Korean economy took on the quick recovery process as being called “V-shaped” path thanks to maintaining high export growth. However, considering the fact that economy was transformed into Export-based structure after Foreign exchange crisis, unless foreign demand is retrieved by recovery of economy from developed countries, Korean economy is expected to stay in deepening global slump which is known as “L-shaped.”

Against long term in sagging economy, Active stimulus would be significant measure to restrain economy from radical contraction of facilities investment and consumption expenditure, which is resulted from decrease in exports. Job creation and social safety net should be intensified to adjust domestic downturn. In addition, in a bid to improve fund-raising for competitive firm which has temporary shortage of liquidity, it should be progressed on schedule to expand export-import financing and credit-guarantee supply. At the same time to revamp tax and related system for firm reconstruction.