If the difference of decline between the business fixed investment deflator and the price index for business fixed investment goods in the CGPI was 3 to 4 percent, a downward bias in the business fixed investment deflator would be about half of this difference.5 Accordingly, both the downward bias in the GDP deflator in National Income Statistics and upward bias in real GDP growth lie between 0.5 percent and 1 percent.
It gained a new lease of life, though, once the situation took a new turn in the aftermath of the outbreak of the currency crisis in late 1997. In view of the urgent need for prompt financial sector restructuring, the IMF recommended the setting-up of an integrated financial supervisory agency to the Korean government.