The purposes of this paper are to evaluate financial policies implemented since 1997 to overcome the economic crisis and retain sustainable growth and to analyze related issues. At the on set of sudden outflow of capital under weak financial system in 1997 the Korean government has rescheduled it's foreign debt and reformed its financial system in a market-based manner.
The Past 4 Years of Financial Restructuring made considerable accomplishments in four main parts; ⑴ Laying the foundations for stable growth, ⑵ Enhancing the competitiveness of the financial sector, ⑶ Implementing a market-based financial system, ⑷ Improved financial infrastructure. In the meantime, there are still a few debatable issues such as public funds, restructuring strategy, moral hazard, market intervention and so on.
Policy lessons from Korea's experience can be summarized as follows. First, there must be national consensus and political leadership to reestablish the economy as efficient and sound financial system. Second, the government has to make market instruments minimizing fiscal costs and moral hazard ahead. Finally, the government should try to erect regulatory reform facilitating the restructuring process in the future.
금융부문 구조개혁의 종합평가(An appraisal of the past 4 years of financial restructuring of Korea)
|Series Title; No||정책조사보고서 / 2002-02|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Financial Policy|
|Holding||한국금융연구원; KDI 국제정책대학원|