ABSTRACT
During the first nine months of 1998 the Korean government concentrated its reform and restructuring actions on the commercial and specialized banking sector. Relatively little reform was needed for the foreign banks. At the end of September 1998 the government announced that the first round of financial restructuring was complete. The government's response to these financial problems involved activating three relatively new organizations. At the time of the economic crisis in 1997, Korea's banking sector faced a series of daunting problems. During the first few months of the economic crisis, the government began a series of measures to deal with the country's financial problems. As a result of Korea's program to reform and restructure the financial sector, there has been a reduction in the number of financial institutions and in some case a very substantial reduction. More importantly the Financial Supervisory Commission was put in charge of the task of the restructuring financial sector.
