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Liberalization process of Korean capital markets

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  • Liberalization process of Korean capital markets
  • Lim, Yang-Taek
  • Business Perspectives


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Title Liberalization process of Korean capital markets
Similar Titles
Material Type Articles
Author(English)

Lim, Yang-Taek

Publisher

[Sumy]:Business Perspectives

Date 2004
Series Title; No Investment Management and Financial Innovations / 1/2004
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Economic Administration
Economy < Economic System
Holding Business Perspectives

Abstract

This study is to analyze the liberalization process of capital markets in OECD countries, derive their experiences, and propose some policies for promoting financial globalization. For a small-sized open economy like Korea, capital liberalization is a prerequisite for economic liberalization. The expected effects of capital liberalization are: reduced cost for raising capital, increased investment profitability, increased efficiency in resource allocation, stimulation of economic growth, introduction of advanced financial techniques, improved function of domestic financial markets, and enhanced competitiveness of liberalized country, etc. However, it is necessary to implement the policies for minimizing the side-effects of capital liberalization such as instability in foreign exchange, stock and financial markets through inflow/outflow of short-term capital, increased volatility in foreign exchange rate, interest rate and prices, risen macroeconomic instability, imbalance of payments, disturbance in domestic industrial orders, restrictions against job increase and economic growth, and deterioration in income distribution structure. (The rest omitted)