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The financial structure in transition : Financial liberalization and economic crisis in Korea
- The financial structure in transition
- Hahm, Joon-Ho
- Yonsei University
| Title |
The financial structure in transition
Similar Titles
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|---|---|
| Sub Title | Financial liberalization and economic crisis in Korea |
| Material Type | Reports |
| Author(English) |
Hahm, Joon-Ho |
| Publisher |
[Seoul, South Korea] : Yonsei University |
| Date | 2001-07 |
| Series Title; No | CIS Working Paper Series |
| Pages | 23 |
| Subject Country | South Korea(Asia and Pacific) |
| Language | English |
| File Type | Link |
| Subject | Economy < Financial Policy |
| Holding | Yonsei University |
| License |  |
Abstract
While there have been numerous studies on the role of state-controlled finance in the development era, it is still poorly understood how the credit allocation mechanism has evolved throughout the recent period of financial liberalization in Korea. This paper focuses on the financing mechanism of the investment spree observed in the pre-crisis episode and finds that the corporate financing pattern in the 90s is characterized with two notable features: first, the rising volume of non-bank financial intermediary (NBFI) intermediated credits – both direct borrowings and the NBFI related direct financing such as commercial papers, and second, the increasingly shorter maturity structure of corporate debts – both domestic and foreign. Those features were in fact deeply related with the nature of financial liberalization policies undertaken and reflected distorted incentives based on implicit government guarantee. (The rest omitted)
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