ABSTRACT
This chapter discusses the system and developments in corporate governance in Korea and addresses important lessons Korea has derived from some studies on comparative corporate governance. The issue of corporate governance of banks is given particular attention in view of the few failures of some large Korean conglomerates and the consequential negative impact on major Korean banks. The chapter describes the traditional “Korean institution” and its problems, singling out the so-called Chaebol-question and representative issues of corporate governance in Korea. It analyzes various corporate governance mechanisms newly introduced in Korea. The chapter explores the relationship between market various corporate governance mechanisms various corporate governance mechanisms corporate governance with reference to the case of Korean firms. One of the most contentious issues in Korea is corporate governance of banks. It is widely believed that many failures in Korea have been caused by bank managers’ breach of their fiduciary duties.
