South Korea still sinking

A number of internal and external factors are expected to stifle South Korea's quick economic recovery. South Korea's export-led economic growth strategy and manufacturing overcapacity were the key reasons for South Korea's economic troubles, especially when it is coupled with bad investments and the persistence of chaebols to prop up their non-performing units. But loss of investor confidence will bring on a credit crunch that will likely transform South Korea from an exporter to an importer, which will be exacerbated by the difficult economic times experienced in the Asian region.