The current American economic crisis is having a negative impact on the Korean economy and is one of the reasons the dollar-won exchange rate has fluctuated wildly in recent weeks, Korean economics professor Sung-In Jun said at a sparsely attended lecture in Aaron Burr Hall on Monday afternoon.Those monitoring the exchange rate ?don?t even have time to go the bathroom? because the exchange rate changes so rapidly, Jun said.Jun discussed the relationship between the current financial crises in the United States and Korea as well as their similarities to Korea?s financial crisis in the late 1990s.The lecture, titled ?An Introduction to Korean Financial Industry: Challenges and Responses,? was the second in a three-part series on ?The New Korean Economy? directed by Un-Chan Chung GS ?78, former president of Seoul National University and a visiting fellow at the Princeton Institute for International and Regional Studies.Jun, a professor at Hongik University in Seoul, explained that ?foreign investors who invest heavily in Korean stocks are selling stocks and leaving the country,? creating a ?vicious cycle? in which lack of confidence in the Korean financial market causes people to withdraw money, which then causes the won, Korea?s national currency, to depreciate.There are, however, internal factors influencing the current economic situation in Korea, Jun said, emphasizing the lack of diversification in financial holding companies, ?misbehavior? within financial firms, the lack of coordination among government agencies and the ineffectiveness of the market-sustainability package released by the Korean government last week.Following the lecture, Hyun Song Shin, a University economics professor, offered comments on Jun?s presentation, and the audience had an opportunity to ask questions during a reception.Shin compared the current economic situation to the crisis in 1997, when the exchange rate jumped from 800 to 1,600 won to the dollar.
