Anne O. Krueger and Jungho Yoo *
Despite the similarities among the countries hit by the Asian financial crisis of 1997, there were some differences. Among them, there were allegations that Korean chaebol had misallocated resources and become overindebted; by contrast, the role of “cronycapitalism,” in which friends and relatives of the politically powerful received loans that they were not expected to repay, was a focal point.
A number of factors contributed to the crises, and there is no broad consensus as to their relative importance. “Crony,” or