The Korean economy experienced continued economic growth and undertook structural adjustment only in the 1980s. It had accumulated various inefficiencies and absurdities from the beginning of the 1960s on its unstable voyage to the 1997 financial crisis. The causes of the crisis were(i) a lagged financial sector and lack of transparency,(ii) government intervention in the banking sector, (iii) high short-term capital inflow, (iv) a term mismatch of assets and liabilities of external debt, (v) failure of prudent supervision of financial institutions, (vi) cumulative current account deficits, (vii) financial liberalization under a fixed exchange rate system, and (viii) a lack of consideration of fixed exchange rate risk. The government ostensibly saw only a rosy dream of the Korean economy, but could not see the real picture behind the Korean economy The governmment lost an opportunity to restructure the Korean economy through the New conomy Five-year Plan. However, the government introduced an unemployment insurance program 1995. The deregulation and liberalization of the financial sector also increased the overall efficiency of this sector