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The Change of the Financial System and Developmental State in Korea

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  • Kang-Kook Lee

Abstract

This study examines the role of institutions and their change related to the rapid economic development and the 1997 Korean financial crisis. In Korea, the government built a state- led financial system through the 1960s and 1970s and a specific government-bank-business relationship based on it. It promoted economic growth by allocating financial resources controlled by it to targeted industries or firms, with discipline over business achieved through these institutions. [Research in Progress 19]

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  • Kang-Kook Lee, 2010. "The Change of the Financial System and Developmental State in Korea," Working Papers id:3307, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:3307
    Note: Institutional Papers
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    References listed on IDEAS

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    Keywords

    institutions; rapid economic development; Korea; financial system; firms;
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