Financial Liberalization in South Korea.

This article analyzes the process of financial liberalization in South Korea from the perspective of financial globalization through an international political economic approach. Korean financial liberalization has been highly influenced by the outside pressure of the United States, the OECD and the...

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Publicado en:Journal of Contemporary Asia Vol. 34; no. 1; pp. 70 - 102
Autor principal: Kwon, Eundak
Formato: Artículo
Publicado: Taylor & Francis Ltd 2004
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Financial Liberalization in South Korea.
      aug:
        au: Kwon, Eundak
      su:
        International competition
        Economic development
        Financial crises
        South Korea
      sug:
        subj:
          South Korea
          International competition
          Economic development
          Financial crises
      keyword: Banks and banking -- Deregulation -- Korea (South)
      ab: This article analyzes the process of financial liberalization in South Korea from the perspective of financial globalization through an international political economic approach. Korean financial liberalization has been highly influenced by the outside pressure of the United States, the OECD and the IMF, as well as by the big business conglomerates (chaebols), as a powerful domestic interest group. In a broad perspective, South Korea's entrance into the OECD, the Financial Services Agreement under the WTO and the Structural Adjustment Program of the IMF after the 1997 financial crisis were important moments for Korea's financial reforms. There are two viewpoints on the causes of the Korean financial crisis. From a domestic viewpoint, South Korea had a weak financial market system and its financial liberalization process was too premature to create a stable financial market when Korea met the financial crisis. In a globalization perspective, financial globalization intrinsically encourages uncontrollable short-term financial capital flows across borders, thus financial crisis is inevitable regardless of a strong or weak domestic financial system. This article compares these two viewpoints in the case of South Korea. Reprinted by permission of the publisher.
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    language: English
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