외환위기 이후 10년 : 재벌정책의 전개, 문제점, 그리고 향후 과제

Abstract

This paper reviews the evolution of Chaebol policy in Korea after the 1997 financial crisis. By doing so, our goal is to shed light on the direction of future Chaebol policy. First, we argue that the policy stance of Korean government on Chaebols has been weakened since 1999, as shown in a series of policy changes. The policy-changes include (a) relaxing - virtually repealing - the upper ceiling restriction on equity investment in affiliated firms, (b) allowing financial institutions to vote on shares issued by affiliated firms, (c) weakening the restrictions on the share-holding of non-financial corporations in financial institutions, (d) introducing a nominal class-action suit law, and (e) weakening the restrictions on holding companies. As for future policy directions, we suggest that the Korean government ban circular share-holdings, modify - not repeal - the upper ceiling restriction on equity investment in affiliated firms, and reintroduce restrictions on holding companies. We also argue that the government should continue the separation of banking and commerce, restrict financial institutions' ownership of non-financial corporations, and restrict financial institutions' voting in shares of affiliated firms. Since current ownership restrictions and the separation of banking and commerce are designed to control problems that cannot be fully addressed by ex-post remedies alone, we suggest that ex-ante regulations, in a modified form, should continue even after ex-post measures to limit contro- lling shareholders' private benefits have been strengthened.