Preface Introduction Toward a post-crisis vision for financial sector 1. Historical Background of Financial Crisis The 1997 crisis: Learning from hindsight 2. Reform and Restructuring Reform: Korea s way out of the financial crisis Restructuring financial and corporate sectors Time for a more active external approach 3. Post-Crisis Transformation of Financial Industry Journey not yet over for Korean banks Savings banks credit firms need more freedom Post-crisis challenges facing securities industry Insurers urged to look beyond local market Changes and challenges in asset management Specialized financial market on a solid footing 4. Evolution of Financial Market Establishing efficient short-term financial markets The trials and tribulations of Korea s stock markets Bond market needs continuous improvement Currency market must be fully liberalized Derivatives market grows due to rising hedging demand products development 5. Regulatory Challenges a ... Preface Introduction Toward a post-crisis vision for financial sector 1. Historical Background of Financial Crisis The 1997 crisis: Learning from hindsight 2. Reform and Restructuring Reform: Korea s way out of the financial crisis Restructuring financial and corporate sectors Time for a more active external approach 3. Post-Crisis Transformation of Financial Industry Journey not yet over for Korean banks Savings banks credit firms need more freedom Post-crisis challenges facing securities industry Insurers urged to look beyond local market Changes and challenges in asset management Specialized financial market on a solid footing 4. Evolution of Financial Market Establishing efficient short-term financial markets The trials and tribulations of Korea s stock markets Bond market needs continuous improvement Currency market must be fully liberalized Derivatives market grows due to rising hedging demand products development 5. Regulatory Challenges and Institutional Development Recipe for success of financial conglomerates Caution urged in easing bank ownership rules Establishing market discipline principles-based supervisory system Booming credit industry will help financial markets Reconsidering the role of policy financing Improving transparency in financial market Financial hub requires skilled manpower 6. The Vision for Korean Financial Industry Financial services industry on new horizon Long-term goals of the financial hub strategy Capital Market Consolidation Act to overhaul financial sector Investment banking as a new growth engine Differentiation is key to successful globalization Electronic finance enhances service efficiency Conclusion Post-crisis vision of Korea s financial industry