North Korea's nuclear program, Kim advised him to back down, fearing a war. A US aircraft carrier and a cruiser had been deployed near South Korea’s east coast in preparation for a possible airstrike, and the United States planned to evacuate Americans, including US troops and their families, Kim said in a memoir. Kim understood that South Korean cities would be bombarded first by North Korea in the event of a strike and saw it necessary to stop any move that could start a war. Japan Kim took an upfront and straightforward attitude in his diplomacy toward Japan, with his quote “We will teach them to have manners once and for all,” referring to Japanese politicians who defended Japan’s wartime atrocities during World War II. 1997 IMF Crisis Kim spent his final year in office, with the nation saddled by an economic crisis. By 1996 and 1997, the banking sector was burdened with non-performing loans as its large chaebols were funding aggressive expansions. During that time, there was a haste by chaebols to compete and expand on the world stage, and Kim's 1993 financial reforms which allowed for the growth of merchant banks and short term loans fuelled increased borrowing by these companies. Many businesses ultimately failed to ensure returns and profitability. The chaebols continued to absorb more and more capital investment. Eventually, excess debt led to major failures and takeovers. The Hanbo scandal which involved Kim's son in early 1997 exposed South Korea's economic weaknesses and corruption problems to the international financial community. Hanbo was the first to declare bankruptcy in January 1997, sparking a domino effect. Kim's government was seen as indecisive in the face of crisis as the financial tsunami began. The next big chaebol to go, was in July 1997 when South Korea's third-largest car maker, Kia Motors, asked for emergency loans. The Kim government refused to bail them out on Kia's terms, and nationalized it in October 1997. The domino effect of collapsing large South Korean companies drove interest rates up and international investors away. In the wake of the Asian market downturn, Moody's lowered the credit rating of South Korea from A1 to A3, on 28 November 1997, and downgraded again to B2 on 11 December. That contributed to a further decline in South Korean shares since stock markets were already bearish in November. The Seoul stock exchange fell by 4% on 7 November