Signs abound South Korea’s economy is verging on a crisis. So why do experts say that is ‘very unlikely’?

Signs of stress in the South Korean economy have grown to levels similar to those of past financial crises, but the government and economists say a meltdown is unlikely as the country’s economic fundamentals are much different to those in 1997 or 2008.

A variety of economic indicators in September revealed the precarious state of the South Korean economy. Foreign exchange reserves have tumbled by the biggest margin since the global financial crisis. The won has fallen to a 13-year low against the US dollar. The country has recorded a six month trade deficit, while interest rates are being hiked.