The liquidity crisis in Korea's markets is already underway.

Bridgewater Associates has publicly shorted the Korean stock market, with short positions exceeding 3 billion US dollars.

As the world's largest hedge fund, Bridgewater Associates was just the starting gun; many Wall Street financial institutions had already jumped the gun before the starting gun fired.

Everyone knows that Goryeo is a sure thing; the only question is when to slaughter it.

A public outcry has already formed.

Japan is also having a tough time, but thanks to its vast overseas assets and the relatively loose monetary policy in its country, it is not as anxious as Korea.

The Japanese side knew that the intelligence America was giving them was an attempt to get them to fight against Zheng Li and the China behind Zheng Li.

Japan isn't that foolish. For them, the current economic situation still offers room for maneuver. At the same time, with its vast overseas assets and land holdings in Brazil, Japan might very well be able to make a name for itself in the virtual world era.

However, the negative impacts of virtual reality on them are also real, so America encouraged Japan, and Japan chose to deliberately leak this information to the Koreans.

This is a minor move, and the Japanese side doesn't know if it will have any effect.

America wanted Neon to test Zheng Li's true strength, while Neon wanted Goryeo to go instead.

In contrast, Goryeo was even more on the edge of a cliff.

They are only one step away from the same fate Argentina experienced, which saw its development from a developed country to an underdeveloped country.

"The situation we are facing now is even more difficult for Korea's economy than the Asian financial crisis of 1997-1998."

The main crisis we are facing now is not in the financial sector, but in technology. Technology from China is having a devastating impact on us.

The crisis we are currently facing in the financial sector is merely a byproduct of the technological crisis.

In 1997, we could have sought help from the International Monetary Fund to avoid the worst-case scenario, namely sovereign default.

In order to meet the requirements of the International Monetary Fund, we implemented many institutional and policy reforms back then.

But what kind of sincerity do we need to show today to satisfy Mr. Zheng from China?

Whether it's the communication between Samsung and Kechuang Bio, or the visit of our high-level officials to Suzhou for research, Kechuang Bio doesn't seem to have a favorable impression of Korea.

And organizations that would be willing to negotiate with us and postpone their established plans.

Most importantly, we cannot offer Mr. Zheng any incentives.

The more serious problem is that even if Kechuang Biotechnology is willing to postpone the launch of its virtual reality world, we are only delaying the arrival of the crisis, not solving it.

Officials from the Korean Ministry of Finance were the first to give their reports.

The financial crisis he mentioned in the 1990s can be traced back to 1990 for Korea.

In 1990, due to rising inflation, the appreciation of the Korean won, and the global economic recession, South Korea's current account balance began to deteriorate.

In 1991, the current account deficit reached US$8.7 billion, more than four times the level of the previous year. To finance the growing current account deficit, the Korean government encouraged capital inflows.

Furthermore, in 1991, the liberalization of the capital account was accelerated by revising the Foreign Exchange Control Law. The limited implementation of capital account liberalization led to a large influx of capital.

In 1993, the South Korean government also announced a blueprint for financial sector liberalization, removing restrictions on the management of financial institutions' assets and liabilities.

However, they overlooked the necessity of adequate prudent oversight in this move, leading to an increase in short-term foreign exchange liabilities for financial institutions.

Furthermore, as part of the requirements for joining the OECD in 1996, the Korean government implemented further financial deregulation and capital market opening.

This led to short-selling institutions, led by Soros, reaping huge profits across Asia, with Korea being the second most lucrative target after Japan.

The sudden policy change by the American Treasury Department was a perfect match for the short-selling institutions.

After Robert Rubin took over the Treasury Department, he adopted a strong dollar policy, which directly led to a rapid increase in Korea's trade deficit and a severe decline in the profitability of export investments.

This has led to financial difficulties for many companies, as mentioned earlier, Korea is a heavily export-oriented economy.

Non-performing loans at the Goryeo Banking Corporation have increased dramatically, and Goryeo's seemingly reliable financial situation is actually on the verge of collapse.

Compared to 1997, at least we were able to figure out the whole story, and there were many ways to handle it.

It's simply a matter of cutting more or less.

Whether they get fleeced by the American government or Wall Street, it's all the same.

However, this time we face an unprecedented crisis, a survival crisis affecting all industries in all aspects.

Even Goryeo, with its most confident cultural industry, is facing the impact of real-life idols.

It remains to be seen how much fighting power Korean-trained idols and the Korean Wave can have against virtual idols.

From top to bottom, Goryeo seemed to have lost its way.

"Our current account is currently unbalanced, and our exchange rate is facing freefall."

The exchange rate of the South Korean won against the US dollar has fallen below 2,000 won to 1 US dollar, hitting a new low in fifty years.

It is already lower than the 1737.6 to 1 during the Asian financial crisis on December 13, 1997.

The central bank currently predicts that, facing a fierce attack from international speculators, we may not even be able to hold the 2500-to-1 level.

This chapter is not finished, please click the next page to continue reading!