Abstract
The alliance with the United States has not only provided South Korea with a credible military deterrence against North Korea, but also helped normalize its economy through extensive military and economic assistance and assertive policy intervention for macroeconomic stabilization and export drive. South Korea was also one of major beneficiaries of the American-built liberal international economic order. No matter how strong the alliance tie would be, however, major external economic crises or subsequent critical junctures (e.g. the Asian financial crisis of 1997 and the global financial crisis of 2008) tempted South Korea to seek an alternative arrangement by attempting to depart from the US-led economic and financial architecture. Nevertheless, such moves were fundamentally constrained because of the preference of continuing stability in international economic and financial institutions and its renewed emphasis on the alliance in face of North Korea’s nuclear threats. South Korea is likely to adhere to the American-led currency regime for the time being.