ed, re They want to kill Korea. ummmm..yah that's it, it's a conspiracy. Of course! Why didn't I think of that b4?
The long term gain can't sustain the short term debt, this is the only problem for Korea, other than that , the economy is sound in Korea, nothing is wrong.
ed, have you read about the automobile factory capacity that has been built up in Korea? How about Kia Motors? How about the brand-new car factory capacity being built right now in Korea, when the existing factory capacity is already too much? Isn't this a business problem? ed, I've read some about Korea, and the business conglomerates there exist only to grow bigger, without regard to profitability or viability of new ventures. This kind of thinking is what brought Korean economy to where it is today.
So your option is either default the payment or make another loan to pay off the old loan, and the business you operated going on untill 10 years later you accumulate enough capital from your business to pay off the loan. That is it, nothing else.
"Make another loan"? I suppose it is that easy when the IMF is always there to bail countries out. But, that debt will have to be paid back, as someone has already pointed out. That's future profits already spent. That's profits that could have been spent on infrastructure improvements, etc. The bottom line is, companies exist to make money. If they're not doing that, then they are simply providing living wages to workers. That's a worthy thing, but meanwhile the standard of living will stagnate. It will take the Asian tigers much longer than you think to get back on solid steady economic growth trend. IMO.
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