IMF Bail Out Brings Development of Economic System

The Korea Security Industry Association (KSIA) released a report on Korea's securities market for the year since the IMF bail out, on November 29.
The association assessed that in terms of real income, Korea's economy retreated to the level of 7~12 years ago, but in terms of the openness of capital markets, economic systems and the change to an economy-oriented mindset, Korea has advanced by more than 10 years.
According to the original plan made by the Ministry of Finance and Economy early last year, the government intended to open some parts of the capital market to foreign investors by the end of the year 2000.
But after the IMF bail out, the government abolished all limits related to foreign investment toward stocks and bonds.
The government also opened the markets for hostile M&A (merger and acquisition), credit rating businesses and mutual fund businesses which were initially scheduled not to be open for the time being.
The government will introduce the system of outside directors and consolidated financial statements, which previously had been just considered without any concrete plans, next year.
These systems are to be opened much earlier than expected due to the IMF bail out.