Globalization Of Korean Banks Based On Financial Services Reform

After East Asian financial crisis, major Korean banks had to reorganize and restructure to remove their bad debts. And as a result of it, most of major banks were acquired by foreign investors. However, a decade after East Asian financial crisis the development of the financial industry in Korea was poorly preceded. Therefore to follow a country's rapid economic structure change the development of banking industry in Korea becomes urgent issue. It indicates manufacturing business in Korea started to follow globalization economy and banking industry should support manufacturing business in oversea sites to actively participate in global finance service. From this paper, analyzing banking industry of Korea and expecting future business of it has the highest priority. But this financial industry always influenced by Korean government policy. Therefore, from the researched data, Korean government' policies are also analyzed and explained to understand the development of Korean banking system.Korean government is planning to issue new finance law to reform finance industry in Feb, 2009. This paper researched and investigated three primary contributions. First, this paper identifies and characterizes Korean banks with major shareholders and their roles before and after the coming financial services reform. Second, the detail plans and strategic points of Korean banks in the global finance market and investment banks in Korea in the eastern Asia region and their new business in China market, especially the strategic point of regional business in China. Third, from the financial service reform in Korea, the effects of the domestic market and how this will help to make major Korean banks to be ranked world finance industry are researched. Also, what kinds of risk factors should be avoided and what kind of strategy is essential to the Korean banks after the financial service reform to be successfully developed are explained to better understand the future business of Korean banks in financial policy.