ABSTRACT

This conclusion presents some closing thoughts on the concepts discussed in the preceding chapters of this book. The book explains in some detail the inadequacies of government supervision and attempted reform of the financial sector prior to the November 1997 crisis. It also explains one of the most serious problems for Korea is the large amount of nonperforming loans (NPLs), held by commercial banks and other financial institutions. Regulation and supervision of Korea's banks has been significantly improved since the November 1997 crisis. Korea's program of corporate reform and restructuring has clearly been less successful than the one for the financial sector. Negative development has been the sharp increase in the chaebols' holdings and influence over the nonbank financial institutions (NBFIs). While progress has been made in certain areas in reforming and restructuring the economy, there is still a large unfinished agenda for both the financial and corporate sectors.