The research on the Korean bank governance reform after the financial crisis

Korea and several Asian countries have experienced a severe financial crisis that was accompanied by large exchange rate depreciations and stock market declines since mid-1997. It has been proved that the Korea financial crisis could be explained in part by weak corporate governance. This paper studied corporate governance reforms in the Korean banking sector and examined the achievements of reform after the Asian financial crisis, on the basis of this, this paper further drew some lessons from Korean bank governance reform which could be benefit to Chinese banks, which are, Chinese banks should strengthen the system of independent directors from legislative perspectives and continue the reform of ownership right to protect the interests of small shareholders. In order to exercise small shareholders' rights better, appropriate share concentration can increase equity of holders except the controlling shareholder.