As the financial crisis caused by the U.S. subprime mortgage defaults spread to the global economy in the fourth quarter of 2008, it also had a great impact on the Korean financial markets. Deteriorating foreign currency supply and demand conditions following the flight of foreign investment funds and the worsening of foreign currency fundraising conditions, as well as domestic financial institutions' conservative lending practices resulted in plunges in local stock prices and the value of the won currency, and a credit crunch. As domestic demand, such as consumption and investment, as well as exports fell drastically, affected by the financial market instability, real economic activities weakened rapidly. For instance, the GDP growth rate (quarter-on-quarter) in the fourth quarter of 2008 hit a record low since the financial crisis in 1997-1998.

※ Please refer to the attached file.