This study statistically compares and analyzes cash payment versus stock payment as acquisition consideration in Korean mergers and acquisitions during the period from 1996 to 2008—a period that encompasses the liquidity crunch and pervasive market uncertainty caused by the 1997 IMF crisis—in relation to the wealth gains of acquiring and target firm shareholders. Two hypotheses are tested in this study. First, does paying the acquisition consideration in stock (which signals stock overvaluation) lead to a decline in the acquiring firm's corporate value? Second, from the perspective of target firm shareholders facing pervasive uncertainty, will they prefer to receive cash (or stock) as acquisition consideration? The study obtained statistical results indicating that the existing empirical findings based on U.S. experience—that paying acquisition consideration in stock leads to a decline in acquiring firm value because it signals stock overvaluation—cannot be accepted within the valid range in this study. Furthermore, acquiring firm shareholders generated an average wealth gain of 1.8% through mergers and acquisitions, with wealth gains of 0.1% when paying in cash and 3.5% when paying in stock. Given these analytical results, the existing "signal" model, in which whether the acquiring firm's stock is over- or undervalued plays an important role in the strategic decision regarding payment method, is considered inadequate for explaining the Korean case. Additionally, analyzing the results in relation to target firm shareholders' wealth creation revealed that wealth gains are maximized when acquisition consideration is paid in cash. Target firm shareholders created wealth gains of 6.2% when paid in cash and -5.1% when paid in stock. Through this study, it can be inferred that in situations of pervasive liquidity crunch and uncertainty, cash is supreme, and therefore selling firms prefer cash over stock—which carries future risk—as acquisition consideration. Consequently, offering cash as acquisition consideration would make the acquiring firm appear more attractive to the target. On the other hand, from the acquiring firm's perspective, while existing theory suggests that cash should be used for acquisition payment because stock is undervalued due to the liquidity crunch and uncertainty, the acquiring firm may actually prefer to pay in stock in order to preserve precious cash as a buffer against potential emergencies rather than spending it on acquisition consideration.