[N Focus] The 1997 Financial Crisis and Corporate Bankruptcies: The Shadows of an Era Reflected in “Typhoon Family”

When South Korea was swept into the unprecedented financial storm of 1997, its economy—once hailed for rapid industrialization—came to an abrupt halt. The crisis, driven by reckless corporate expansion and excessive borrowing, sent shockwaves through the nation’s industries and exposed the fragility of its financial system.

As major conglomerates defaulted under the weight of unsustainable debt, the crisis transcended financial concerns, revealing the limits of South Korea’s entire economic structure. The government sought an emergency bailout from the International Monetary Fund (IMF), ushering in sweeping structural reforms and a nationwide campaign of shared sacrifice.

Photo courtesy of Typhoon Family

At the heart of the turmoil lay the overleveraged structure of corporate debt. Throughout the early 1990s, many chaebol had capitalized on low global interest rates and abundant liquidity to expand aggressively through foreign loans. But when the Korean won plummeted and foreign investors abruptly withdrew, these companies could no longer service their debts, triggering a cascade of bankruptcies.

The first to collapse was the Hanbo Group. Once a rapidly growing steelmaker, Hanbo’s debt-fueled expansion proved unsustainable, and in February 1997 it filed for court receivership, igniting a wave of corporate failures. Its downfall devastated subcontractors and small manufacturers, tearing through the backbone of Korea’s industrial ecosystem.

Sammi Group, another diversified conglomerate, soon followed. With interests spanning construction, chemicals, and steel, Sammi succumbed to liquidity shortages and financial gridlock. Then came Daewoo—once the nation’s second-largest conglomerate and a symbol of industrial ambition. Its vast empire in autos, shipbuilding, and electronics crumbled under the weight of global overreach and debt, leading to its effective dissolution in 1999.

Daewoo’s collapse left thousands jobless and weakened the country’s industrial competitiveness, further chilling investor confidence. The wave of bankruptcies marked not only an economic crisis but also a profound social reckoning.

The new drama "Typhoon Family" revisits this turbulent era, blending corporate downfall with human drama. Set against the backdrop of the IMF crisis, it portrays the lives fractured by economic collapse with realism and empathy.

Photo courtesy of Typhoon Family

Actor Lee Junho plays Kang Tae-poong, a once carefree playboy who transforms into the responsible head of his family amid the financial storm. Kim Min-ha co-stars as Oh Mi-sun, the archetypal “K-eldest daughter,” juggling work and study to support her household. Together, their stories capture the resilience and burden carried by a generation that lived through the IMF era.

More than a nostalgic period piece, "Typhoon Family" invites reflection on how financial collapse reshapes both society and individual lives. It illuminates how numbers on a balance sheet translate into human pain—and how those lessons still resonate in today’s uncertain economy.

Reported by Korea News Culture M.J._ [e-mail]