Description: Korea : Financial Sector Assessment

Korea : Financial Sector Assessment

Since the financial crisis in 1997-98, Korea has made major progress in financial, and corporate sector reform - the supervisory and regulatory regime for the financial sector has been substantially strengthened, and recent reforms helped achieve a...

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Bibliographic Details
Main Authors:	World Bank, International Monetary Fund
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	ACCOUNTING ACCOUNTING SYSTEMS AGRICULTURE ALM ARBITRAGE ASSET CLASSIFICATION ASSET MANAGEMENT ASSETS AUDITING AUTHORITY AUTHORIZATION BALANCE SHEET BALANCE SHEETS BANK EXPOSURE BANK GUARANTEES BANK LIABILITIES BANK OF KOREA BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BANKRUPTCY BANKS BENCHMARK BONDS BORROWING BORROWING COSTS CAPITAL ADEQUACY CAPITAL REQUIREMENTS CAPITALIZATION CLEARINGHOUSE COMMERCIAL BANKS COMPETITION POLICY CONNECTED LENDING CONSOLIDATION CONSUMER PROTECTION CONTAGION CORPORATE GOVERNANCE CORPORATE RESTRUCTURING CORPORATE SECTOR COURT SYSTEM CREDIT UNIONS DEBT DEPOSIT INSURANCE DEPOSIT PROTECTION DEVELOPMENT BANKS DISCLOSURE ECONOMIC CONDITIONS EMERGING MARKET ECONOMIES EQUITY CAPITAL EQUITY MARKETS EUROPEAN CENTRAL BANK FACTORING FINANCIAL CRISIS FINANCIAL DIFFICULTIES FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL RESTRUCTURING FINANCIAL RISKS FINANCIAL SAFETY NETS FINANCIAL SECTOR FINANCIAL SECTOR REFORM FINANCIAL SECTORS FINANCIAL STABILITY FINANCIAL SYSTEM FOREIGN BORROWING FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE EXPOSURE FOREIGN EXCHANGE LIBERALIZATION FOREIGN EXCHANGE MARKET FOREIGN EXCHANGE MARKETS FOREIGN INVESTORS FOREIGN OWNERSHIP FOREIGN PARTICIPATION FOREIGN RESERVES GDP GOVERNMENT AGENCIES GOVERNMENT AGENCY GOVERNMENT BONDS GOVERNMENT OWNERSHIP GUIDELINES HOUSING INDUSTRIALIZED COUNTRIES INFLATION INSOLVENCY INSOLVENCY LAW INSOLVENCY REFORM INSOLVENT INSTITUTIONAL INVESTORS INSURANCE INSURED DEPOSITS INTEREST INCOME INTEREST RATE INTEREST RATE SWAPS INTEREST RATES INVENTORY ITC JUDICIARY KDB LACK OF TRANSPARENCY LAWS LEGAL FRAMEWORK LEGAL INFRASTRUCTURE LEGAL PROTECTION LEGISLATION LEGISLATIVE CHANGES LEGISLATIVE REFORM LIABILITY MANAGEMENT LIQUIDATION LIQUIDITY LOAN MARKETS LOW INTEREST RATES MACROECONOMIC PERFORMANCE MACROECONOMIC SHOCKS MARKET BEHAVIOR MARKET RISK MATURITIES MERCHANT BANKING MUTUAL SAVINGS BANKS ORGANIZATIONAL STRUCTURE ORGANIZATIONAL STRUCTURES PENSION PLANS PENSIONS PREFERENTIAL TREATMENT PRIVATE OWNERSHIP PROFITABILITY PRUDENTIAL SUPERVISION PUBLIC DEBT PUBLIC DEBT MANAGEMENT REGULATORY AUTHORITY REGULATORY BODIES REGULATORY FRAMEWORK REGULATORY REGIME REHABILITATION RESERVE BANK OF AUSTRALIA RETIREMENT RISK MANAGEMENT RISK MANAGEMENT SYSTEMS SAVINGS SECURITIES SECURITIES MARKETS SHAREHOLDERS STABILIZATION STOCK PRICES SUBSIDIARIES SYSTEMIC RISK TAXATION TRADING TRANSMISSION OF MONETARY POLICY TRANSPARENCY TREASURY BILLS VALUATION
Online Access:	http://documents.worldbank.org/curated/en/2003/06/2387454/korea-financial-sector-assessment http://hdl.handle.net/10986/13880

Description
Summary:	Since the financial crisis in 1997-98, Korea has made major progress in financial, and corporate sector reform - the supervisory and regulatory regime for the financial sector has been substantially strengthened, and recent reforms helped achieve a high degree of observance of international standards, and codes. Moreover, significant consolidation in the banking system took place, with banks becoming more profit oriented, and their operations streamlined. The impressive macroeconomic performance led to strong real growth, low inflation, and growing official foreign reserves, facilitating the improvement of measured financial sector soundness. However, important reform measures were delayed, e.g., addressing issues in the areas of insurance and securities, adopting the insolvency framework, and in the completion of corporate restructuring, reforms crucial to prevent an economic downturn. Despite progress in prudential supervision, concerns remain on the regulator's ability to supervise risks, and, information and monitoring of connected lending and cross ownership in the financial crisis, also remain issues of concern. Key recommendations suggest that steps should be taken to reassure markets that the independence of the regulator is important; that measures to strengthen provisioning for household lending are welcome; that a full examination of the Korea Development Bank should be conducted, including a review of the derivatives-related accounting systems, complemented by a targeted external audit of the bank; a continued pension reform is urgent given the rapidly aging population; and, particularly worrisome is the seemingly inadequate supervision of the problems arising from non-bank deposits taking institutions' face soundness, where tighter supervision of securities is warranted. Similarly, corporate governance and disclosure need further steps, aligning accounting and auditing reforms with evolving internal best practices.

Korea : Financial Sector Assessment

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