Go to content


Issue Report

Collection of full-length papers and in-depth analysis of economic and management issues.

Prospects for the Financial Market And Financial Industry after Financial Sector Restructuring

Prospects for the Financial Market And Financial Industry after Financial Sector Restructuring

KIM Kyeong-Won

July 1, 1999

Download Prospects for the Financial Market And Financial Industry after Financial Sector Restructuring PDF email Print

Abstract

Up until the 1980s, governmental protection and control helped the rapid growth of the Korean financial industry. In turn, the Korean financial industry contributed to rapid economic growth, playing a role in supporting the real economy. However, this protection deprived the industry of the opportunity to enhance competitiveness for itself. As a result, inefficiency accumulated and the soft underbelly of the financial industry began to be exposed in the 1990s. What is worse, the limits of the government-led financial policy were revealed as external pressures forced Korea to accept international standards in financial business. In addition, domestic financial institutions’ efforts to enhance their own competitiveness turned out to be insufficient.

Even the government tried financial reform, including financial sector restructuring, from January 1997, but it did not proceed as smoothly as planned due to conflicts among the concerned parties and the indifference of the political world, which was busy preparing for the presidential election. In the end, the reform failed, and then the currency crisis hit the nation at the end of 1997.

For full text (40 pages), click the PDF icon on top.
Go to list