AP Econ-Lee-06

In 1998, South Korea had the highest unemployment rate (8.7%). This was due to overall Asian economic crisis, which caused currency devaluation and lack of foreign currency reserve. The result was the worst inflation South Korea ever met. It was Stagflation. Yet, the unemployment issue quickly improved by government's short-term employment measures, such as increases in public works projects, and the rapid recovery of the South Korean economy. Now, current South Korea unemployment rate is 3.4%. Youth unemployment rate (age 15-24) is approximately 9.8%.

Close government and buisness ties made this incredible growth possible.