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South Korea's self-imposed economic austerity measures have had some unexpected and unfortunate results. Ian Williams of Independent Television News reports.

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IAN WILLIAMS, ITN: These are the latest and youngest victims of Korea's financial crisis. Here they call them the IMF orphans, children put into care by parents who claim they can no longer afford to look after them. Eighteen of forty-four children in this orphanage alone. Behind the smiles, the tragic stories of families ripped apart by economic turmoil. Children like seven-year-old Yu-gene deposited here after her father's watch-making shop went out of business. And Jusang, whose father, on the run from creditors promised he'd be back for him.

INTERPRETER: He said, "Sleep here for 20 nights. Then we'll meet again."

IAN WILLIAMS: But that was in March. Byung-So, also seven, says he misses his parents playing with him. They left him here six months ago, so the orphanage would provide an education, which they could no longer afford.

BYUNG-SO, Orphan: (speaking through interpreter) After I finish learning how to read and write, when I'm eight, then I'll go home.

IAN WILLIAMS: This is one of forty-seven orphanages in Seoul. It was established for Korean War orphans. Now, most children here have parents who are still alive and for whom today's war is against poverty. The job of placing children in care falls on a special unit at city hall. They acknowledge that after a decade of decline, the numbers are rising sharply. Refusing to give precise figures, they reject suggestions that children are simply being abandoned.

LEE YUNG HEE, Seoul Official: (speaking through interpreter) I believe it is because of financial difficulties, but I want to make very clear that we are not a nation that abandons our children when times get tough. There is definitely a difference between putting children in temporary care and abandoning them.

IAN WILLIAMS: But those dealing directly with the children are not so charitable, criticizing parents they regard as irresponsible and selfish.

JAE-KWON KOH, Welfare Society: (speaking through interpreter) When parents leave their children in our care, they promised they'll work hard to get themselves back on their feet so they can pick up their kids as soon as possible. They also promised to come and visit once or twice a month. But when some don't even do that, I wonder whether they'll ever come back, even if their finances improve.

IAN WILLIAMS: Traditionally, family ties are very strong in Korea. But there's no meaningful welfare system. Most health and education has to be paid for. And even families who would never dream of abandoning their children acknowledge the strain of raising a family.

PARK JI-YOUNG, Mother: (speaking through interpreter) We tried to cut down as much as possible on things like clothes, going out to eat, and so on, basically cutting back on luxuries, but it's very difficult to cut down on spending that goes on your children.

IAN WILLIAMS: It is an enormously sensitive issue, one that provokes considerable shame and embarrassment. But many Koreans blame it less on the economic situation but on what they see as the erosion of traditional family values. It's taken Korea just 30 years to transform itself into a modern industrial nation. That's produced a confusing mix of opportunities and values. It appalls many older Koreans. They see a younger generation putting their own comfort and well-being above that of their family, a view shared by those working in this orphanage. With Korea facing mounting economic problems, they're bracing themselves for a new wave of IMF orphans.

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