Crisis BreakoutThe fixed exchange rate has given a false sense of security in Southeast Asian countries (Thailand, South Korea and Indonesia). This system encouraged these countries to take on a huge debt denominated in the US dollar, on top of this, the exports of these countries were low in the mid-70s 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 inflow of capital and weak exports had repercussions on the widening of current account deficits and a significant part of the inflow was in the form of loans to short term, which leads these countries to external distress. due to speculation in currency prices and reporting of stock market profits, monetary policies were disrupted in these markets, leading to increased interest in stopping the transfer of national currency to other foreign currencies , in particular the American dollar; furthermore, to try to encourage US dollar-friendly investors to shift their funds to national currencies. On this basis, 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 abandon their securities and deposit its value in banks to benefit from rising interest rates. This resulted in an increase in securities without any tender offer compensation, which led to a sharp decline in stock prices, reaching 50-25% compared to prevailing market rates. Thailand: Economy of Thailand Between the years 1985 and 1996, Thailand's economy grew and peaked at over...... middle of paper ......ai Motors took over Kia Motors. While; The $5 billion Samsung Motors business was liquidated due to the crisis and Daewoo Motors was eventually sold to the American company General Motors (GM). The South Korean won, meanwhile, has weakened to more than 1,700 to the U.S. dollar, from around 800. Thanks to sharp economic declines and frequent business bankruptcies, South Korea has managed to triple its GDP per capita in dollars since 1997. Indeed, it has regained its role as the fastest growing economy in the world – since 1960, GDP per capita has increased from $80 in ostensible terms to over $21,000 in 2007 However, like the chaebol, the South Korean government did not escape unscathed. Its national debt-to-GDP ratio more than doubled (around 13% to 30%) following the crisis. In South Korea, the crisis is also commonly called the IMF crisis..