Opening the doors

Article Abstract:

South Korean banks are becoming exposed to market forces and moving away from regulations and state protection. Insurance, securities and commercial banking are separated in line with regulations, but subsidiaries can be set up to allow crossover businesses. The banking system is fragmented and the government aims to consolidate the industry as part of a plan to liberalize financial services in S Korea. There is concern that conglomerates could move into banking and this could distort the way that financial firms work. The industry is not yet ready to move toward universal banking.

Commercial Banks, Commercial Banking, Banking Institutions, Depository Credit Intermediation, DEPOSITORY INSTITUTIONS, Banking industry, Banks (Finance)

---

Giant sucking sound? Concerns about hollowing out in South Korea

Article Abstract:

South Korea's foreign-investment outflows far exceed its inflows, raising concerns about a 'hollowing out' of its job base and industrial capacity. S Korean firms spent $2.5 billion in Jan-May 1996 setting up overseas ventures, while foreign direct investment hit just $963 million. The five largest chaebol plan to spend $60 billion on foreign investment in the coming decade, largely, they say, to engage in businesses they otherwise would not be in. Government officials are most concerned with attracting more investment.

Net Foreign Investment, Foreign investments, Foreign trade promotion

---

Why worry?

Article Abstract:

South Korea's economy remains fundamentally robust despite a series of figures that worry some observers and have sent the stockmarket down more than 10%. Most significant is the rising trade deficit, which hit $4.7 billion for the first five months of 1996 thanks to a rising won and weak markets for some major exports. High interest rates and inflationary pressures also cause some alarm. However, GDP growth is leveling off to 7% for 1996, vs 9% in 1995, and several factors are shifting in Seoul's favor.

Similar abstracts:

• Abstracts: Displacing the grid. Teaching the lessons of life. Building without tears
• Abstracts: U.S. firms aren't seen following Pepsi in selling Burmese interests. Coke hopes Chinese brand turns into Western hit
• Abstracts: Dong Ah may receive loans; creditors attach conditions to sustain unit. Expansion raises a red flag at Daewoo
• Abstracts: Rush of deals propels Peregrine to the top of the heap. China-related red chips are touted; Japan wanes. Political strife in Taiwan, South Korea may offer bargains, fund managers say
• Abstracts: On the methodology of the World Competitiveness Report. A methodology for competitiveness analysis and strategy formulation in glass industry

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.