국내 금융위기이후의 은행구조조정에 관한 연구

Abstract

ABSTRACT

A Study on the Reconstruction of Banks after Korean Financial Crisis

Seol, Young－Hwa Adviser : Prof. Park, Ro－Kyung, ph.D. Department of Trade Graduate School of Chosun University

The purpose of this study is to outline and analyze the bank reconstruction after Korean financial crisis in 1997 by reviewing the financial and foreign exchange crisis, bank M&A and evaluating how the government policy has worked about the reconstruction of banks using published literatures and data from internet.

After the financial crisis of 1997-1998, the Korean government began a two-stage financial restructuring. In the first stage, two banks were nationalized for later sale to foreigners, five insolvent banks were closed and then merged with blue-chip banks, foreign capital injections were given to seven banks, and public funds were used to normalize operations of the remaining surviving banks. Korean banks responded with cost reductions and the fastest disposal rate of non-performing loans among the Asian countries suffering the currency crisis. The second stage of restructuring was focused on restoring bank profitability. Financial holding companies were created to make merger and acquisition easier and help banks realize scale economies.[Park and Weber(2006), p.2374].

This thesis consists of six chapters. The first chapter outlines the purpose ,range of study, the method and the brief contents. The second and third chapters have inquired about an outline of the foreign exchange crisis and a progress of reconstruction of Korean bank. The fifth chapter evaluates the government policy of reconstruction of bank, after outlined the background, necessity and progress of reconstruction in the fourth chapter. And then the sixth chapter draws the conclusion.

The results of Korean government's policy evaluations on the bank reconstruction are as follows. First, P&A(purchase and assumption transaction) and government-assisted mergers and selling the bad banks to foreign capitals are successful to deal with bad bank problems. Second, quick and dirty approach for bad credits has resulted in improving the bank soundness. Third, balance sheets restructuring of banks have enhanced the profitability and efficiency. Fourth, the extreme competition in the financial market has urged the Korean government and the banks to introduce the market-friendly policy.

The limitation of this thesis is that the empirical analysis for the subject was not conducted to judge the improvement level of bank and financial reconstruction.