While the rest of the world are scrambling for help to keep their businesses and financial institutions afloat (with hundreds of billions of money extended to companies in the United States alone), South Korea, on the other hand, doesn’t see the need to seek help from IMF, or the International Monetary Fund.

According to Shin Je-yoon, deputy minister of the country, believes that their country is not experiencing the usual financial troubles of other countries. In fact, they believe that they have strong liquidity when it comes to their liquidity. This positive outlook can be attributed to a number of factors. First they are able to hold off a lot of their monetary reserves, which means they really don’t easily ran out of their own currency should the exchange rate falls in the market. They have also set up a good forex arrangement (such as currency swap) with the United States. They are also thinking of swapping currencies with China and Japan. As of this time, they have foreign reserves amounting to more than $230 billion.

A Good Stimulus Package from China

Though China is not spared from the global economic meltdown, it has still managed to release a stimulus package as a proactive approach to curb the problem. In turn, it will alleviate the current negative economic effect of falling currency rates in the market.

The stimulus package, which was introduced on November 9, amounts to more than $800 billion. The fund that is good for two years will be used to improve the infrastructure of the country. They will also be reconstructing certain establishments such as offices and schools that have been destroyed by earthquakes. They are also planning to build communities and houses for their people. They will also be busy building railroads and power grids.

If all of their plans push through, this will have a profound effect on the economy of other countries. For instance, Japan can look forward to an increase in their sale of farm equipment. They will also be purchasing machine tools from California, or Brazil may sell their iron ore to China. Other countries that may benefit from this move will be South Korea and Taiwan. Suppliers of goods to china will also be happy to note that there will be tax deductions just so they will be more encouraged to make investments to the country.

The Economy of China

Ever since China has opened its doors to the rest of the world, it has experienced tremendous growth in its economy. Today it is now considered to be one of the super players.

However, there are still a number of economists and experts who are wondering about this move from China, especially when it comes to how much is really going to be spent for the plan. It could be that there will be more money that will be released very soon, but the amount has not been announced yet. One thing is for sure, though: whenever China experiences growth, their neighbors can also benefit from it. For instance, for every percentage of growth China experiences, the rest of Asia can look forward to an increase equivalent to half of what China gains.