Strategy Research On Korea Banking Structure Reforming And Entering China Market

After the restructuring of ROK's banking industry, the industry was turned into the form of government holding most of the shares, which offers the government an opportunity to legally control the financial sector. The banking industry is an undertaking aiming at profits, so the banks'development direction should be the result of policymaking by the interest-related people through rationalized policymaking institutions. This is especially true of the events, such as merger, which have great impacts upon the banking structures. Government's regulation of the banking industry for policy purposes may be effective, but, in terms of sharpening banks'competitiveness, it is not completely appropriate. Under the self-disciplined competitive environment, banks can upgrade their competitiveness through operations upon their own judgment. As long as the supervising government ensures reasonable environment, those who have interest vested in banks will carry out the banks'social monitoring function to the full. The supervising government shall lay stress on reasonable public release systems and structure internal risk control management. The current mergers of banks failed to take into consideration the relevant whole market structures, and they were merely policy-based mergers without much difference. It is inevitable that, after the mergers, large banks, in the name of improving earnings structure, reduce their service to consumers, etc., which in turn will prove from one aspect that large scales will infringe consumers'benefits.It is hard to obtain quantitative data on the effectiveness of bank mergers and the damage from restricting competitions. It is hard to reconcile the comparative difficulties with proper policies and justify bank mergers by taking effectiveness as a sign. After financial restructuring, with the constantly increasing numbers of the government and insurance companies becoming...