Business Case Studies, Monetary Policy Case Study, Currency Appreciation, South Korean Economy

print page
Tell A Friend

Case Categories

Monetary Policy Case Study

Case Title:

Currency Appreciation and South Korean Economy: Shipbuilding Industry at the Centre of the Storm?

Publication Year : 2007

Authors: Raghava, Sardhi Kumar Gonela

Industry: General Business

Region:South Korea

Case Code: MOP0013

Teaching Note: Available

Structured Assignment: Available

Buy This Case Study

South Korean policymakers introduced Import Substitution Industrialisation (ISI) as a measure to encourage the domestic businesses and bring economy back on growth track, after the Korean war of early 1950s. During 1960s, the government introduced many export-promotion policies. However, by 1970s, the government's focus was on manufacturing and to support this production-led growth, Heavy and Chemical Industries (HCI) initiative was introduced. Shipbuilding was and is a focused industry that accounts for almost 4% of South Korea's GDP (as per 2007 estimates). Yet it was blamed for won's recent appreciation - from 1,145 per dollar in 2004 to 984 by January 2006 - adversely affecting other export sectors. Its government tried to arrest the rising won, whose outcomes are still ambiguous.

The case study helps analyse how developments in one sector affect the whole economy. Debates can ensue about how governments should act, when benefits from one sector subvert other sectors.

Pedagogical Objectives:

  • To understand a currency's appreciation, depreciation, revaluation and devaluation
  • To examine the economic impact of currency appreciation
  • To debate on various alternatives while controlling appreciation.

Keywords : South Korean Economy, Currency Appreciation, Currency Depreciation, Currency Revaluation, Currency Devaluation, Exchange Rate, Real and Nominal Exchange Rates, Monetary Policy Case Study, Hedging, Comparative Cost Advantage, Economic Effects of Currency Appreciation, Measures to Control Currency Appreciation

Recently Bought Case Studies

    Recently Bought Case Studies

    Executive Interviews

  • David ConklinDavid Conklin

    David Conklin, is a professor at the Richard Ivey School of Business
    Speaks on Government and Business
  • Lord Meghnad DesaiLord Meghnad Desai

    Lord Meghnad Desai, is an Indian-born British economist and Labor politician
    Speaks on Government and Business
  • Vijay GovindarajanVijay Govindarajan

    Vijay Govindarajan, is widely regarded as one of the world’s leading experts on strategy and innovation
    Speaks on Reverse Innovation
  • View All Executive Interviews»

Contact us: IBS Case Development Centre, Survey No. 156/157, Dontanapalli Village, Shankerpalli Mandal, Ranga Reddy District, Hyderabad-501203, Telangana, INDIA, E-mail:

©2020-2025 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap