The role of IT on the Korean economy under IMF control

During the period of IMF control of the Korean economy in 1997, development of IT was emphasized as a potential breakthrough for easing the crisis. This paper will analyze the potential of the IT industry for increasing the productivity of the Korean economy. Using the VIO model, the changes in Korea industries before and after IMF control are derived. However, the response to the change in the IT sector falls short of our expectations. Therefore, we conclude that IT policy should be market-oriented in order that even non-IT industries may be positively affected by the development of IT.