This panel discussion examined South Korea's economic and security policies from a variety of perspectives; including the domestic and external economic and security factors that South Korea must take into account in order to achieve its goals of long-term economic growth, security and regional integration. The panelists were: Yong Soon Yim, dean of the Graduate School, Sungkyunkwan University; David C. Kang, associate professor of government, Dartmouth College; Joseph A.B. Winder, then president of the Korea Economic Institute; Thomas J. Byrne, vice president and senior credit officer, Moody's Financial Institutions and Sovereign Risk Group; and David Rocks, senior news editor-Asia, Business Week.

Read more: Security and Economic Challenges Facing South Korea in 2005

To look at the numbers one would be hard pressed to call South Korea's current economic situation a crisis. Since the 1997 financial collapse and the more recent consumer credit turbulence, the economic situation has stabilized. Interest rates are low. Spending and exports have reached record levels, as have corporate profits. But on the ground, says David Chon, a principal at Discovery Capital Management, a silent crisis is playing out. Koreans have lost confidence in their economy and have become dangerously risk averse, he said, and the country may fall permanently behind the rest of East Asia if this pattern continues. The tempo of economic development in Asia has never been faster.

Read more: Korea: The Silent Crisis

Noting that a number of key challenges have emerged as the South Korean economy embarks on the New Year, Chin Dong-Soo, deputy minister for international affairs in South Korea’s Ministry of Finance and Economy, discussed recent macroeconomic performance and the adoption of several long-term initiatives aimed at ensuring future prosperity.

Read more: New Challenges for the Korean Economy in 2005