International Finance Corporation (IFC) was very active in the Republic of Korea immediately after the Asian financial crisis erupted in 1997. IFC reestablished operations in Korea and opened a local office in October 1998, and closed it in late 2002 after Korea recovered from the crisis. At the end of 1997, the Korean economy suddenly started to contract, the Korean won plummeted by over 100 percent against the US dollar, and liquidity in the banking sector dried up. Major commercial banks as well as smaller specialized financial institutions all faced increases in non-performing loans and were unable to roll over their shorter-term funding. In response to this crisis, IFC's first priority was to strengthen financial institutions through both financing and advisory services, and enable them to lead the restructuring process. IFC then injected liquidity into the trading system through trade enhancement facilities. IFC supported the restructuring of corporations facing liquidity problems and helped its clients grow as the recovery began. IFC helped strengthen Korea's financial sector by giving priority to financial sector reform. The Board approved investments of about US70 million in 16 banks and finance companies.