Korea’s Credit Rate to Surpass Japan’s

U.S. newspaper New York Times forecasted in the article comparing the economy of Korea with that of Japan on the 4th, “chain index of Korea in the next year may be higher than that of Japan, which has been a tutor on economy. ”

In the article from Seoul titled “Korea thrives by shunning Japanese ways, ” New York Times said, “ South Korea, long in Japan`s shadow, is blazing a new trail for Asian economic development. ”

The newspaper reported, “ While Japan`s stagnation draws attention, South Korea`s boom draws investors. International rating agencies praise South Korea for bouncing back from a financial crisis five years ago, paying back a $20 billion loan from the International Monetary Fund (IMF) and stacking up $108 billion in foreign currency reserves. ”

Then, the paper introduced the process of economic reformation and restructuring of Korea, saying, “ Korea has been more active than Japan in allowing companies to go bankrupt. ”

Former U.S. Ambassador in Korea Donald P. Gregg, who had worked in both Korea and Japan, said to the newspaper, “ In Korea, if something isn`t working, they move it, they break it, whatever. The Japanese go along in the hope that tweaking it will make it change. ”

New York Times pointed that bankrupt companies and banks in Japan often receive generous bailouts, on the argument that they are `too big to fail`, while about half of the 30 "chaebol," or family-owned conglomerates, have been allowed to fail, to be restructured or to change ownership since 1997 in Korea.

In addition, the newspaper reported, “At the end of May, the eyes of the world will swivel to South Korea and Japan, co-hosts of the World Cup soccer championship. Even without this, South Korea is increasingly recognized as a world economic player. ”

Ki-Heung Han eligius@donga.com