Restructuring Korean Economy After the IMF Crisis

This paper examines the current state of corporate and financial sector
restructuring in Korea, primarily focused on their debt workout
programs. The paper raises the following major issues. Since the IMF
crisis, foreign capital has been advancing rapidly into the domestic
market- into the domestic financial industry, including non-bank
sectors such as securities firms. Negative social consequences have
surfaced, such as widened income disparities, and also regional
disparities. Due to the huge cost of re-structuring, the government's
fiscal burden has likewise increased. The economic sovereignty of Korea
needs to be rehabilitated, and its social integrity enhanced.

This paper examines the current state of corporate and financial sector
restructuring in Korea, primarily focused on their debt workout
programs. The paper raises the following major issues. Since the IMF
crisis, foreign capital has been advancing rapidly into the domestic
market- into the domestic financial industry, including non-bank
sectors such as securities firms. Negative social consequences have
surfaced, such as widened income disparities, and also regional
disparities. Due to the huge cost of re-structuring, the government's
fiscal burden has likewise increased. The economic sovereignty of Korea
needs to be rehabilitated, and its social integrity enhanced.

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