Outbreak of the crisisThe fixed exchange rate gave a false feeling of security in the countries of Southeast Asia (Thailand, South Korea and Indonesia), this system encouraged these countries to conclude a huge debt denominated by the US dollar, on top of that the exports of these countries were weak in the mid seventies due to the high value of the US dollar compared to the Japanese yen, on the other hand China devalued its currency in 1994, the huge inflows of capital and weak exports were reflected in the widening of current account deficits, as well as a significant part of the inflows came in the form of short-term loans, which leads these countries to an external difficult situation. following speculation on currency prices and the declaration of stock market profits, monetary policies were disrupted in those markets which led to increased interest to stop transferring the national currency to other foreign currencies, especially the US dollar ; also, to try to encourage US dollar-leaning investors to move funds into domestic currencies. Based on this, the interest rate increased by 25% in Thailand and 35% in Korea, and remained at this level for several days, forcing investors in these markets to give up their securities and deposit their value in banks to benefit from the interest rate increase. This resulted in a rise in securities without any compensation from takeover bids, which led to a sharp decline in share prices, which reached 50-25% above prevailing market rates. Thailand: Economy of Thailand Between the years 1985 to 1996, Thailand's economy developed and peaked over...... middle of paper ......ai Motors took over Kia Motors. While; Due to the crisis, the $5 billion enterprise Samsung Motors was liquidated, and Daewoo Motors was eventually sold to the American company General Motors (GM). The South Korean won, meanwhile, weakened from around 800 to more than 1,700 per US dollar. Due to sharp economic decline and frequent multinational bankruptcies, South Korea has managed to triple its GDP per capita in dollar terms since 1997. In fact, it has resumed its role as the fastest growing economy in the world: since 1960, GDP per capita grew from $80 in apparent terms to more than $21,000 in 2007. However, like the chaebol, the South Korean government did not emerge unscathed. Its national debt-to-GDP ratio has more than doubled (from around 13% to 30%) due to the crisis. In South Korea, the crisis is also commonly referred to as the IMF crisis.