This work presents a critical analysis and evaluation of the current Korean banking regulatory and supervisory system. It identifies the continuing structural weakness of the Korean banking system, which were thrown into sharp relief by the 1997 financial crisis, and focuses on the need for reform in order to achieve financial stability. The study centres around three central questions:

The book argues that the Korean banking system, characterised as a "governmental control system" for credit allocation, should be removed from undue governmental and political interference, the allowing the involvement of banks in commercially oriented practices without exposure to the significant risks incurred by governmental policy directed lending. The author calls for a high degree of transparency and accountability, for a clear, realistic timetable for reconstructing, and for an effective exit policy for troubled commercial banks.

This book will be of value to practitioners, researchers and academics working in the field of banking law, particularly those with a special interest in the Asia-Pacific region.