Korea’s 1997 foreign exchange crisis: IMF disbursements and bank debt rollover
Trace why foreign currency remained scarce after IMF approval and distinguish immediately available disbursements from debt whose repayment creditors deferred.
Updated Nov 8, 2026
The approved amount and immediately available funds
On 1997-12-04 the IMF approved a stand-by credit of 15,500,000,000 SDR and made 4,100,000,000 SDR immediately available. Later drawings were tied to program reviews and conditions.
Faster official disbursements and creditor-bank negotiations
IMF records show that in late 1997, short-term rollover rates were low and usable reserves were scarce. Around the 1997-12-24 announcement of faster disbursement and additional program measures, creditor banks were being asked to maintain short-term credit lines. A debt-rescheduling agreement was announced on 1998-01-29.
Dollars coming in and dollars whose payment is deferred
Official disbursements increase foreign currency available for use. Extending existing debt reduces payments due now while leaving the debt outstanding. Compare approved funds, actual disbursements, debt falling due and debt rolled over across the same period.
What the financing record can establish
The records establish the sequence of disbursements and creditor-bank negotiations. Governments’ motives for accepting or declining bilateral support, the social cost of restructuring and changes in manufacturing competitiveness require other evidence.
Sources
- IMF | Approval of the 1997 stand-by credit for KoreaAccessed Nov 8, 2026
- IMF | Asian crisis annual report and chronologyAccessed Nov 8, 2026
- IMF Independent Evaluation Office | Evaluation of the Korean crisisAccessed Nov 8, 2026