How did Korea deal with the foreign currency crisis in 1997?
Korea faced a foreign currency crisis in 1997 due to increasing trade deficits, poor management by financial institutions, and reckless business operations by conglomerates. To address this, the country dealt with the situation through emergency financial support provided by the International Monetary Fund (IMF).
Simultaneously, efforts were made to improve the country's economic constitution. The citizens actively contributed towards foreign loan repayment through the Gold Collection Movement, playing a crucial role in overcoming the economic crisis.
Explanation
The answer is derived directly from the first paragraph of the provided context. It highlights the immediate financial remedy (IMF support) and the domestic public response (Gold Collection Movement) as the two main methods used to deal with the crisis. The context explicitly links the crisis to trade deficits and poor management, which serves as the background for the solution.