This research was presented in January of 1991 by the Financial Economy Institute. It includes an interim evaluation of the sixth plan that was presented earlier, and it breaks down the seventh plan’s measures by sector.
The sixth plan focused on achieving stability and expanding financial payments in the production sector. We have maintained financial liberalization, we have achieved a level of financial competitiveness that corresponds to the national income level and we have doubled our ability to raise funds by ourselves instead of relying on foreign debt.
The main implementations include the supply of liquidity, the liberalization of the finance sector, the management of incomes and expenditures, the opening of the finance sector and internationalization. As a result, inflation was kept to a single digit in spite of various unfavorable factors and we successfully introduced a competitive system thanks to the liberalization of interest rates.
The seventh plan aims to diversify financial products, lower interest rates, prepare for increased funding demand by government sectors and focus on preparing for various market changes including the increased weight that will be put on direct financing deals by companies. The detailed proposals faithfully support industrial advancement and growth, enable the appropriate supply of currencies and encourage us to strengthen the international competitiveness of our financial industry.
The policy is divided into sectors: fiscal policy, financial policy, securities industry, insurance industry, exchange rate, foreign currency and so forth.
The fiscal policy strengthens the basis on which to implement and comprehensively manage the policies that are appropriate for the market conditions. This is done by actively using currency, interest rate and exchange rate indicators. Additionally, these policies set up a promissory notes trading market that will allow us to obtain early liquidity.
For financial policies, they tried to radically reform the financial industry in order to increase competitiveness by rationalizing the interest rate system, inducing the balanced development of the primary and secondary markets and gradually liberalizing regulated rates. To boost the equity of financial distribution, they decided to strengthen industrial finances such as those of medium-to-small businesses and the parts sector.
Above this, they respect the different areas of general, expert and specialized banks while allowing them to compete freely. Detailed plans are implemented to improve the competitiveness of the securities and insurance industry in order to contribute to economic growth and public welfare.
제7차 경제사회발전5개년 계획 금융부문계획(안)(The seventh five-year plan for economic and social development – plan for the financial sector (proposal))
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Financial Policy
Government and Law < Public Administration
|Holding||금융경제연구원; 한국개발연구원 국제정책대학원|