Korea's Capital Market Promotion Policies: IPOs and Other Supplementary Policy Experiences

Artikel

This paper studies a series of capital market promotion policies Korea pursued over a 30-year period during its development era (1960s - 1980s). The purpose of this paper is twofold. The first purpose is to understand the policy approaches Korea took, and the second is to extract lessons that can benefit policymakers in the developing world, where capital market promotion is an important policy goal. There are two key features of Korea's capital market promotion policies. First, the government was actively involved, sometimes indirectly by giving tax incentives to encourage IPOs. However, in other times, it was directly involved by giving IPO orders and threatening those that did not comply. No stock exchange in a developed country has ever experienced such government involvement. Combined with rapid economic growth, this interventionist approached allowed the Korean stock market to experience phenomenal growth over a short period of time. Second, the capital market promotion policies had multiple objectives. One was to mobilize domestic capital for economic development. Another was to lower firms' debt-to-equity ratios. Most interestingly, however, the Korean government wanted to popularize stock ownership, thereby allowing ordinary Koreans to share in the fruits of economic growth.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: KDI Journal of Economic Policy ; ISSN: 2586-4130 ; Volume: 37 ; Year: 2015 ; Issue: 2 ; Pages: 64-97 ; Sejong: Korea Development Institute (KDI)

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Economic History: Financial Markets and Institutions: Asia including Middle East ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance ; Development Planning and Policy: General ; Economywide Country Studies: Asia including Middle East
• Thema: Capital market promotion ; initial public offering ; securities deposit and settlement systems ; employee stock ownership plan ; Korea

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Kim, Woo Chan
• Ereignis: Veröffentlichung
• (wer): Korea Development Institute (KDI)
• (wo): Sejong
• (wann): 2015

Weitere Informationen

• DOI: doi:10.23895/kdijep.2015.37.2.64
• Handle: http://hdl.handle.net/10419/200772
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ