Research On Korean Financial Market Regulatory System

After the global recession in 2008,there has been another wave of a request for the financial regulatory system restructuring in Korea financial market.Based on the multiple cases in other developed countries including the epicenter of the financial crisis,the United States,lax and careless financial regulation has been at the center of the debate of the causes of the financial crisis.Amid the financial regulatory restructuring movement around the world,there arises the request for international cooperation to enhance the effectiveness and efficiency of financial supervision and regulation.Continually changing the global macroeconomic environment and the essence of the financial market,Korea economy,especially the financial market went through drastic upheavals from the 1990 s till now.After two major financial crises in 1997 and 2008,the Korean government has restructured the financial regulatory system.The pressure of domestic politics and external foreign economic institutions drove the financial regulatory system and swift legal enactment,and administrative structural changes followed.In each regime,the financial regulatory system was one of the priorities of the political issues.However,the focus of financial regulatory restructuring lied in microeconomic aspects and all the regulation and related policies were separated into all the related financial institutions.With the rise of the importance and influence of the systematic risk and Macro-Prudential Financial regulation,this paper approached the Korean financial regulatory system from the macroeconomic paradigm including national income,household debt,and GDP growth and tried to analyze the role of financial regulation in the Korean economy.Another analysis on the direction of the Korean financial market is based on the Fintech industry and the regulatory tools derived from the Fintech and Regtech technology based on the big data and computer science.Since there were recent issues from the technological advances in Fintech industry such as blockchain,electronic currencies,and crowdfunding affecting the whole financial market,those recent developments are threatening the stability of the market but could provide impetus of the growth in the market at the same time.These two ways of approach methods are expected to contribute to the research on the direction of implementing the Korean financial regulatory system restructuring.Financial market regulation should be in line with the improving inequality,enhancing financial consumer protection,contributing to stability in inflation through improving trust in the financial market,macroprudential monitoring,and developing Regtech and supporting Fintech industry.