Economic Restructuring and Capital Inflow: Thailand and Korea

South Korea and Thailand which are receiving the financial support from IMF got similar international remarks on promoting the economic reform that has an exemplary effect. However, there are not only differences in the causes of the economic crisis, but also the status and effect of the economic reform. At present, Thailand gets a more ascendant status than South Korea in the "quo" status of attracting foreign investment. The reason is that the causes of the economic crisis in Thailand are relatively simple and the process of economic reform is also simple. Besides, Thailand is in the condition which made the effect came true easy. Meanwhile, since the procedures of firing the staff in Thailand are cut off, and the employees are easy to lose their jobs, it insures the flexibility of the labor market. Besides, the Thai government reduces the investment risk of foreigners by way of investing in stocks of the same value or remaining guarantee. South Korea also should insure the flexibility of the labor market and promote the flexibility of attracting foreign investment, which bases on the cooperation of the workers, employees and the government. If transfers the ill creditor's rights to large bank, foreign investors should be encouraged by permitting an alternative of receiving the good asset or government warranty.