This paper examines Korea's recent experience with financial liberalization to find empirical evidence for the McKinnon-Shaw hypothesis regarding the effect of financial liberalization on the allocative efficiency of credit. This involves analyzing changes in the variation of average borrowing...

The 1997 financial crisis turns out to be a major turning point in the history of Korean chaebols. The post-crisis corporate reform has resulted in a dramatic change in the landscape of chaebols as about one half of the top 30 chaebols changed their names after the crisis. The reform was swift...