ABSTRACT

The modern financial system in Korea began under the influence of foreign advisers to the treasury of the Yi dynasty at the turn of the twentieth century and was subsequently tailored to the needs of the Japanese colonialists after annexation. Banking institutions dominated the financial system of Korea, and banking itself was heavily tilted toward specialization and compartmentalization. The Federation of Financial Associations was established to carry out a wide range of nonbanking activities: the collection and distribution of rice and other grains, the purchase and distribution of imported fertilizers, and so on. The institutional players in the securities market are the securities companies, the Korea Securities Finance Corporation, and the securities investment trust companies. The financial system of a developed economy is a network of intricately related institutions and an interwoven framework of legal structures and conventions.