The Asian financial crisis struck at the end of 1997, casting a dark shadow over the region, and especially South Korea. Indeed, a number of consultants were under utilized at the time, as there were fewer clients to serve.
One particular McKinsey report, however, turned this downturn into an opportunity. In early 1997, the Seoul office began work on an MGI report titled “Productivity-led Growth for Korea,” which was premised on the idea that various South Korean institutions, including the banking sector, had become an obstacle to further economic growth, due to their inefficiency.
Realizing the extent of the impending crisis, the office put even more focus on the report, which naturally received a great deal of publicity in Korea. Before long, the report helped position McKinsey as the authority on restructuring efforts during the gravest financial crisis in South Korea’s modern history and provided the foundation for ongoing discussions for spurring growth. During this period the firm's reputation as the preeminent partner in overcoming business problems was cemented as the Seoul office contributed to the restructuring efforts of many Korean industries.