Too Fast to Adjust : The Sequence and Consequences of Bank Restructuring in South Korea, 1998-2006

This paper explores the sequence, pace, and outcomes of bank restructuring in South Korea since the financial crisis of 1997, paying special attention to the state intervention in regard to resolving non-performing loans and privatizing temporarily nationalized banks by foreign selling. It argues that, contrary to the conventional view that stresses the positive roles of foreign banks' entry in upgrading the domestic banking, the rapid foreign selling and increased foreign ownership has not substantially contributed to such a upgrade