The Study On South Korea's Financial Regulation Reform

Financial industry is the hub of the modern market economy,providing financial products and services are indispensable in modern life.However,due to financial institutions “borrowing short and lending long” mode of operation,financial institutions have the potential risk of funding mismatch;Closely dependent among financial institutions has the potential systemic risk;The liquidity of deposit contract potentially runs the risk factors during the crisis.Therefore,the financial industry has the characteristics of vulnerability.The financial risk is systematic and contagious,which makes a country's economy and even the global economy is seriously threatened.Thus,for ensuring the stable,orderly and healthy development of the financial industry has become an important issue faced by all countries.Financial regulation,as a safeguard mechanism for the development of the financial sector,has been attached great importance by the policy authorities of most countries.As one of the most important emerging economies in Asia,South Korea's financial industry is owning a very high degree of internationalization,which also brought great impact during the foreign exchange crisis in 1997 and the 2008 global financial crisis.South Korean authorities take the two crises as an opportunity to adjust the financial regulatory methodology and deepen financial regulatory reform.In the reform areas of the regulatory regime,organization function,supervision rules and supervision measures have accumulated a lot of valuable experience.It is also benefit for china to study from South Korean.This paper mainly studied the South Korea's financial regulatory reform from the following aspects.Firstly,basing on a series of system,rules and organization,with the aid of a series of policy measures and tools,the financial regulation is for the purpose to control financial risks,maintain financial stability and promote development,serve the economic growth and economic development.Chapter 2 mainly introduced the financial regulation connotation,mode and related theory.Secondly,the South Korean financial regulation functions of organization reform,is providing the reference for our country.Chapter 3 respectively researched South Korea's financial regulatory system from separated financial regulatory system and comprehensive financial regulatory system;explored the motivation of the reform of financial regulation in South Korea from the internal motivation and external pressure;described current situation of the South Korean financial system from the perspective of financial institutions and financial markets.Chapter 4 studied the functions of South Korea's financial regulatory organization reform,and the construction of the financial safety net and function from two periods of separated regulation and comprehensive regulation.South Korea's comprehensive financial regulatory model has important significance to our country's current financial regulatory reform.Thirdly,in order to ensure its steady development,a high degree of openness in the financial sector needs to be highly international financial regulatory policies.Chapter 5 studied the perfection of financial regulation in South Korea,namely carrying out exchanges and cooperation with other countries by the Basel Committee on banking supervision on financial regulation internationalization(BCBS),the international organization of Securities Commissions(IOSCO)and the International Association of Insurance Supervisors(IAIS)and other international financial regulatory agencies,and the flexible implementation of international regulatory standards according to the situation of the financial institutions.In addition,South Korea's financial regulatory authorities promoted and built well international development environment for financial markets and enterprises through perfecting capital of the open policy,implementing international accounting standards(K-IFRS)in domestic enterprises.Fourthly,the South Korean economy recovery after the global financial crisis,proved that its comprehensive reform,especially the financial reform and regulatory reform has achieved well results.Chapter 6 studied South Korean financial regulatory reform in periods of the Asian financial crisis and the global financial crisis.During the Asian financial crisis,the financial regulatory reform focused on regulatory reform and micro prudential supervision of financial institutions.However,after the global financial crisis,the South Korean authorities focus on reform of macro-prudential policies,strengthen financial consumer protection,people's livelihood financial development environment and activate financial markets,highlighting the transformation of South Korea's financial regulatory reform.The transformation of South Korea's financial regulatory reform after two crises takes references for our country,especially for the macro-prudential regulation,financial consumer protection and the financial development of the people's livelihood,etc.Fifthly,the financial regulation reform achievements and the deficiencies in South Korea was of great significance to our country financial regulation reform.In Chapter 7,we evaluated the effect of South Korea's financial regulatory reform,and put forward related suggestion combining with the situation of our country.South Korea's financial regulatory system is more mature and robust through a series of financial regulatory reform.Also,the national sovereign credit has been constantly ascension.In the process of the reform,however,the insufficient power of central bank financial supervision and lacking of independent financial consumer protection were also the problems.In combination with characteristics of China's financial regulatory system and the challenges faced by the financial regulation reform,taking the experience of South Korea's financial regulation reform for the enlightenment,this paper puts forward several suggestion,such as setting up by the central bank as the core of comprehensive financial regulatory system,improving the macro-prudential policy,perfecting the system of financial consumer protection,and optimizing the environment of China's financial development of the people's livelihood etc.Compared with the existing literature,the innovations of this article are as follows: first,the financial supervision development of South Korean was comprehensively studied in this paper,including the reform areas of the regulatory regime,organization function,supervision rules and supervision measures,especially the characteristics and effects of new financial regulatory reform after the global financial crisis,which makes up for the inadequacy of existing literature on this aspects,providing a reference for China's financial regulatory reform.Second,taking the advantages and disadvantages of comprehensive financial regulatory mode in South Korea for reference,combining with our existing " One bank and Three commissions" regulatory mode,this paper puts forward to establish a comprehensive financial regulatory mode including the central bank.On the one hand,this will improve the shortage of the current separated regulation pattern in our country,on the other hand this can also avoid the problems similar in South Korean.Third,drawing lessons from South Korea,combined with our national conditions,this paper take the assumption to establish a financial consumer protection agency,which is an independent authority from the regulatory agencies.The inadequacies of this article are also obvious,which are the lack of research on the relevant financial regulatory agencies and the regulatory effect of the policy needs to be tested.