소장기록
제목Corporate Restructuring in Korea : Policy Issues before and during the Crisis
설명Restructuring Corporate Korea under crisis is an on-going process which began less than a year ago and is in fact a continual evolution so long as the business environment changes. Thus it is too early to make a definite judgment on the future of Korean industries and chaebols. Although many of the uncertainties arise from volatile market variables which do not allow any reliable predictions, there are still many government-made instabilities. The present situation of crisis tends to justify stronger government interventions, valid or not, since the government is believed to be the only player who can mobilize the resources needed to fix the problems in financial and corporate sectors. One irony is that the tradition of state predominance in the Korean economy, which has been at the root of many problems of Korea Inc., is now being reinforced during the crisis, possibly turning Korea into another state-run economy (see the Asian Wall Street Journal, August 25, 1998). The point is that a proper role of the government is called for in order to overcome the crisis, but the inertia of erroneous government intervention, once developed, cannot be easily removed when the economy no longer needs it. The debate in Korea on the role of the state vis-a-vis the market highlights this concern over any excessive (or too hands-off) intervention by the government coupled with overkilling (or blindly believing) market mechanisms in dealing with the crisis. Neither government intervention nor market mechanisms are in itself an objective, the real issue being which is the most cost-efficient way of restructuring Corporate Korea. A dichotomized approach may be necessary in dealing with corporate restructuring versus financial restructuring in that the former should resort more to market principles while direct intervention by the government is inevitable in the initial stage of financial restructuring, although intervention in financial restructuring should as much as possible work to reinforce markets and be as consistent in its treatment of all players as possible. Indeed, in the process of recapitalizing and cleaning the balance sheets of financial institutions, many banks are to be nationalized or placed under stronger state control.
생산자유승민
날짜1999-02-01
기록유형문서류
기록형태보고서/논문
주제정치경제
연관링크http://www.kdi.re.kr/research/subjects_view.jsp?pub_no=973
식별번호KC-R-00553
제목Corporate Restructuring in Korea : Policy Issues before and during the Crisis
설명Restructuring Corporate Korea under crisis is an on-going process which began less than a year ago and is in fact a continual evolution so long as the business environment changes. Thus it is too early to make a definite judgment on the future of Korean industries and chaebols. Although many of the uncertainties arise from volatile market variables which do not allow any reliable predictions, there are still many government-made instabilities. The present situation of crisis tends to justify stronger government interventions, valid or not, since the government is believed to be the only player who can mobilize the resources needed to fix the problems in financial and corporate sectors. One irony is that the tradition of state predominance in the Korean economy, which has been at the root of many problems of Korea Inc., is now being reinforced during the crisis, possibly turning Korea into another state-run economy (see the Asian Wall Street Journal, August 25, 1998). The point is that a proper role of the government is called for in order to overcome the crisis, but the inertia of erroneous government intervention, once developed, cannot be easily removed when the economy no longer needs it. The debate in Korea on the role of the state vis-a-vis the market highlights this concern over any excessive (or too hands-off) intervention by the government coupled with overkilling (or blindly believing) market mechanisms in dealing with the crisis. Neither government intervention nor market mechanisms are in itself an objective, the real issue being which is the most cost-efficient way of restructuring Corporate Korea. A dichotomized approach may be necessary in dealing with corporate restructuring versus financial restructuring in that the former should resort more to market principles while direct intervention by the government is inevitable in the initial stage of financial restructuring, although intervention in financial restructuring should as much as possible work to reinforce markets and be as consistent in its treatment of all players as possible. Indeed, in the process of recapitalizing and cleaning the balance sheets of financial institutions, many banks are to be nationalized or placed under stronger state control.
생산자유승민
날짜1999-02-01
크기 및 분량85쪽
언어영어
출처한국개발연구원
연관링크http://www.kdi.re.kr/research/subjects_view.jsp?pub_no=973
기록유형문서류
기록형태보고서/논문
대주제정치경제
소주제산업
자원유형기록
파일 d66875fc4ec7b56f46cd7df3d0b0a339.pdf
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