Capital Market Opinion (Ceased)
2014 Sep/16
Global Trends in Financial Reform and Korea
September 16, 2014
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- Summary
- The financial sector is having heated discussions as regulatory reform emerges as one of Korea’s top national agendas. There is still a long way to go before the discussed ideas materialize as reform. The most difficult task of all is persuading the numerous economic entities with conflicting interests to reach a consensus. Hence, in order for regulatory reform to achieve substantial results, it is necessary to set the fundamental direction first. If consensus is reached about the overall direction, it will be easier to coordinate conflicting interests and maintain momentum. More importantly, it will help the reform be more effective, consistent, and persistent. This article diagnoses the trends in developed nations’ financial reform, and draws out the fundamental direction in which Korea should head. Based on that, I present concrete actions Korea should carry out.