Research On Financial Liberalization Reform Of Korea Since 1980s

Many developing countries had performed financial liberalization reforms since 1970s, which were guided by the theories of financial liberalization. Simultaneously, these experiences also promote the development of the theories on financial liberalization.Korea's financial liberalization reform was so classical that its experience was significant to the other developing countries and it could be divided into two stages. From the beginning of 1980s, so-called first-stage financial liberalization reform was put into practice which focused on domestic financial reform, such as interest rate deregulation, restructuring the financial sector and etc. The process of the second-stage financial liberalization gained momentum from the beginning of the 1990s when the first step of a four-stage interest rate deregulation plan was put in place in 1991. At the same time the opening of financial market and the liberalization of the foreign exchange market were further accelerated. As China also faces reform and openness of domestic financial market now, Korea's experience on financial liberalization is meaningful to China.This thesis includes four parts. Chapter one introduces McKinnon-Shaw approach and also the extension and criticism of this model. At the end of this chapter, this theory's realistic significance to developing countries is presented. Chapter two introduces the contents of Korea's two-stage financial liberalization reforms. According to the description of chapter two, chapter three appraises Korea's two-stage reforms respectively and points out the experience and lessons of Korea. Chapter four puts forward some strategic suggestions on financial liberalization for China.