This document has been created to engender discussion on the revision of the sixth five-year economic plan. It describes the current status of the Korean financial industry, and aims to define the role of finance in changing economic conditions. It should be noted that this document does not describe confirmed government policy, but was written to enable discussion of the revision of the plans by suggesting financial management efficiency measures, as well as measures for the improvement of financial institutions and of the financial market.
In Korea, the financial industry grows slower than the real economy as the autonomous function of finance is limited due to government-led economic development. The principle of competition and market function, optimally based on creativity, is not effective enough, and the fiscal balance improvement of financial institutions which is required as corporate is not made. Additionally, in the financial industry, there is not sufficient competition between financial institutions, and the entire financial industry does not exhibit balanced development.
For the continued development of the financial industry, financial liberalization should be enforced. This will ensure the autonomy and creativity of the private sectors throughout the economy is respected, and will enable the financial industry to develop autonomously by promoting competition among financial institutions. In order to set up new functions for fund brokerage in the financial sector, the efficiency and fairness of financial fund distribution should be reinforced, market function should be cultivated, and the opportunity to use finance should be expanded to vulnerable parts. Also, in order to expand the function of trading and to share duty as a country with a surplus balance in international trade, the globalization of finance should be advanced, and gradual liberalization of foreign exchange and capital transaction should be improved so as to respond to the opening of finance and the real economy.
In order for the financial industry to develop, liberalization and globalization of finance should be enforced, and the stability of financial institutions should be promoted, while efficiently managing monetary policy. Also, for the consistent development of the financial industry, the financial market should be bolstered in the short and long term, encouraging the development of the insurance industry.
금융산업발전방향과 개편과제(Direction for financial industry development and reformation)
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Financial Policy|