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Fundamental challenges to internationalization and overseas expansion of Korea.

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  • Fundamental challenges to internationalization and overseas expansion of Korea.
  • Hyun, Suk
  • Korea Capital Market Institute


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Title Fundamental challenges to internationalization and overseas expansion of Korea.
Similar Titles
Material Type Reports
Author(English)

Hyun, Suk

Publisher

[Seoul]:Korea Capital Market Institute

Date 2013-09
Series Title; No Capital Market Opinion
Pages 6
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Financial Policy
Holding KCMI

Abstract

The need to internationalize Korean financial firms is growing amid low interest rates and low growth in the Korean economy. But unfortunately, they are struggling to advance into global financial markets. In order to successfully raise global competitiveness and advance into the global markets, it is obvious that Korea needs to enlarge its banks and nurture large IBs. But a more fundamental approach is to renew Korea’s policy drive for internationalizing the Korean won and making the country a financial hub. This effort fizzled during the global financial crisis and needs to be revitalized. A major stumbling block to this approach is the nature of the economy: Korea is a small, open economy with high dependency on external factors and high sensitivity to foreign exchange rate fluctuation. Martin’s analysis on the correlation between country size and exchange rate volatility suggests that the Korean economy is on the threshold of currency internationalization. (The rest omitted)