Creating New Corporate Governance System for Korean banks : Lessons from French banks' Cases

Abstract

1. Bringing up major issues and objectives of research Less than 1 year after becoming an OECD member. Korea encountered an

economic crisis (so-called ··IMF era"). It has been traced to the indiscriminate investment by large conglomerates ignoring their core competencies. "excessive leveraged management government's excessive interference and regulatory measures deviating from market economy principles. and a weak corporate governance system lacking of "checks and balances" with no clear identification of the various stakeholders. This view also sparked active debate about the corporate governance system of the Korean banks. including whether industrial corporations should be permitted to own banks equity without restriction.