The Revelation About The Reorganization System Of Korean Banking After The Asian Financial Crisis To China Banking

After the Asian financial crisis of 1997, the Korean government vigorously promoted financial and economical reforms in the countries and regions that were affected by the crisis. The Korean government recognized the disadvantages of conventional financial theoretics and well deal with the crisis by the financial theoretics according with finance development.Korea was the first country that escaped the influence of the crisis. This is so in part due to a firm belief by Korea that credibility plays a crucial role in rebuilding financial institutions and this in turn affects the whole economy. Hence, Korea readily accepted financial support from IMF (International Monetary Fund) at the end of 1997, as well as the Korean government placing a lot of public funds into Korean banking and the financial sector.As well as financial assistance to aid recovery, the government reformed banking laws and introduced a series of reform programmes. The banking structure was reorganized such that five major banks were removed and replaced by a foreign capital shareholder.In recent years, Korea has relied on the financial market to become stable by the injection of foreign capitals and have the incentives of compensation when things do go wrong. Korean has persevered with its structural reforms by supplementing old adequate reforms and changing completely inadequate reforms so that banking administration is promoted and developed further. This has inevitably leaded to gains and loss in the banking sector but on the whole there has been a vast improvement.