This paper uses a three-step Bayesian cross-entropy estimation approach in an environment of noisy and scarce data to estimate behavioral parameters for a computable general equilibrium model.
... See More + The estimation also measures how labor-augmenting productivity and other structural parameters in the model may have shifted over time to contribute to the generation of historically observed changes in the economic arrangement. In this approach, the parameters in a computable general equilibrium model are treated as fixed but unobserved, represented as prior mean values with prior error mass functions. Estimation of the parameters involves using an information-theoretic Bayesian approach to exploit additional information in the form of new data from a series of social accounting matrices, which are assumed were measured with error. The estimation procedure is "efficient" in the sense that it uses all available information and makes no assumptions about unavailable information. As illustration, the methodology is applied to estimate the parameters of a computable general equilibrium model using alternative data sets for the Republic of Korea and Sub-Saharan Africa.
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Policy Research Working Paper WPS7174 JAN 01, 2015
Korea experienced a financial crisis in the late 1990s, which it overcame successfully. The rich experiences gained in handling past crises have helped in the establishment of a broad crisis management framework in Korea.
... See More + The successful management of the 1997 financial crisis is reported to have been guided by the following principles: (i) bold and decisive measures are required to regain market confidence, rather than incremental ones; (ii) though Government will take the lead in crisis management initiatives, private capital should be encouraged to fully participate in the process; (iii) bank recapitalization and creation of a bad bank are not mutually exclusive options; the crisis management measures should be politically acceptable and have built-in exit strategies with clear time-frames; (iv) moral hazard should be minimized; and (v) all forms of financial protectionism must be rejected. Korea responded to the 2008 global financial crisis with certain policy measures that helped the Korean financial and real sectors to weather the immediate effects of the global crisis. These included policy and financial support to stabilize the money, securities, and bond markets, to extend financial support to corporate and financial entities, and to support small and medium enterprise (SME) and micro finance sectors. The authorities introduced a series of measures to contain the stress in Mutual Savings Banks (MSBs) during 2011 and 2012 and turned them around. The stress in MSBs was largely due to an extensive industry-wide exposure to troubled real estate project financing as well as shareholder and management misconduct.4 Faced with sector-wide stress and declining depositor confidence the financial sector regulatory agencies jointly announced new mitigating measures for the MSB sector.
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Financial Sector Assessment Program (FSAP) 93684 DEC 01, 2014
Korea experienced a financial crisis in the late 1990s, which it overcame successfully. The rich experiences gained in handling past crises have helped in the establishment of a broad crisis management framework in Korea.
... See More + The successful management of the 1997 financial crisis is reported to have been guided by the following principles: (i) bold and decisive measures are required to regain market confidence, rather than incremental ones; (ii) though Government will take the lead in crisis management initiatives, private capital should be encouraged to fully participate in the process; (iii) bank recapitalization and creation of a bad bank are not mutually exclusive options; the crisis management measures should be politically acceptable and have built-in exit strategies with clear time-frames; (iv) moral hazard should be minimized; and (v) all forms of financial protectionism must be rejected. Korea responded to the 2008 global financial crisis with certain policy measures that helped the Korean financial and real sectors to weather the immediate effects of the global crisis. These included policy and financial support to stabilize the money, securities, and bond markets, to extend financial support to corporate and financial entities, and to support small and medium enterprise (SME) and micro finance sectors. The authorities introduced a series of measures to contain the stress in Mutual Savings Banks (MSBs) during 2011 and 2012 and turned them around. The stress in MSBs was largely due to an extensive industry-wide exposure to troubled real estate project financing as well as shareholder and management misconduct.4 Faced with sector-wide stress and declining depositor confidence the financial sector regulatory agencies jointly announced new mitigating measures for the MSB sector.
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Financial Sector Assessment Program (FSAP) 93684 DEC 01, 2014
This economy profile for Doing Business 2015 presents the 11 Doing Business indicators for Korea, Rep. To allow for useful comparison, the profile also provides data for other selected economies (comparator economies) for each indicator.
... See More + Doing Business 2015 is the 12th edition in a series of annual reports measuring the regulations that enhance business activity and those that constrain it. Economies are ranked on their ease of doing business; for 2015 Korea, Rep ranks 5. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 189 economies from Afghanistan to Zimbabwe and over time. Doing Business measures regulations affecting 11 areas of the life of a business known as indicators. Ten of these areas are included in this year's ranking on the ease of doing business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency. Doing Business also measures labor market regulation, which is not included in this year's ranking. The data in this report are current as of June 1, 2014 (except for the paying taxes indicators, which cover the period from January to December 2013).
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An assessment of the level of implementation of the IOSCO Objectives and Principles of Securities Regulation (IOSCO Principles) was conducted in the Republic of Korea (Korea) from April 3 to 19, 2013 as part of the IMF-World Bank Financial Sector Assessment Program (FSAP).
... See More + The assessment was made by Eija Holttinen, Monetary and Capital Markets Department, IMF, and Andrea Corcoran, an external expert working for the World Bank. The previous IOSCO assessment of Korea was conducted in 2001-02 before the first IOSCO Assessment Methodology had been developed. From the perspective of the IOSCO Principles, this is therefore effectively a first assessment. Hence, comparisons with the prior assessment are discouraged since the process has since been refined to promote consistency and has become progressively more rigorous. The assessment was based on: (i) a self-assessment and additional written responses prepared by the authorities; (ii) reviews of the relevant legislation and regulations; (iii) meetings with the management and staff of the FSC, SFC, FSS, Ministry of Strategy and Finance (MOSF), Bank of Korea (BOK), Seoul Central District Public Prosecutors Office; and (iv) meetings with SROs and market participants, including the KRX, Korea Securities Depository (KSD), KOFIA, KICPA, Korean Chamber of Commerce and Industry, banks, securities companies, fund managers, issuers, credit rating agencies, audit firms and local lawyers specialized in securities markets law.
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Financial Sector Assessment Program (FSAP) 92621 SEP 01, 2014
This assessment of the current state of the implementation of the Basel core principles for effective banking supervision (BCP) in the Republic of Korea has been completed as part of a financial sector assessment program (FSAP) update undertaken by the international monetary fund (IMF) and the World Bank (WB) during 2013.
... See More + It reflects the regulatory and supervisory framework in place as of the date of the completion of the assessment. An assessment of the effectiveness of banking supervision requires a review of the legal framework, and detailed examination of the policies and practices of the institution(s) responsible for banking regulation and supervision. In line with the BCP methodology, the assessment focused on the financial services commission - financial supervisory authority (FSC-FSS). This FSAP provides introduction; information and methodology used for assessment; institutional and macroeconomic setting and market structure - overview; preconditions for effective banking supervision; summary compliance with the Basel core principles; and detailed assessment.
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Financial Sector Assessment Program (FSAP) 92619 SEP 01, 2014
This report contains the assessments of the Bank of Korea (BOK)-wire+ and Korea exchange (KRX) central counterparty (CCP) based on the committee on payment and settlement systems (CPSS) - International Organization of Securities Commissions (IOSCO) principles for financial market infrastructures (PFMI).
... See More + The assessment was undertaken in the context of the international monetary fund's (IMF's) financial sector assessment program (FSAP) to the Republic of Korea in April and July 2013. The objective of the assessment has been to identify potential risks related to the FMIs that may affect financial stability. The scope of the assessment includes two main FMIs as well as the authorities in Korea responsible for regulation, supervision, and oversight of FMIs. The BOK-wire+ and the KRX CCP are assessed against all relevant principles of the PFMI. The authorities, being the BOK, the financial services committee (FSC), and the financial supervisory service (FSS), are assessed using the responsibilities for authorities of FMIs. This report provides introduction; methodology and information used for the assessment; overview of the payment, clearing, and settlement landscape; and key findings follow up for the BOK-wire+; key findings and follow-up for the KRX-CCP; key findings and follow up for authorities; recommendations for the BOK-wire+; recommendations for the KRX-CCP; and recommendations for authorities.
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Financial Sector Assessment Program (FSAP) 92620 SEP 01, 2014
The initial assessment under the Financial Sector Assessment Program (FSAP) was undertaken in 2003. The first Update mission (April 2013) assessed the observance of selected international standards and codes, and initiated discussions on a broad range of financial sector stability issues.
... See More + In the case of each of the sector assessments new methodologies adopted since the global financial crisis were employed. The second mission (July 2013) completed its review, documented its assessment in a draft Aide-Memoire, and reviewed with the authorities the Aide-Memoire as well as draft technical notes covering a range of topics. The objectives of the FSAP were to review developments in the financial sector since the initial 2003 FSAP and in light of the lessons from the global financial crisis, assess and formulate recommendations related to financial stability and the financial sector oversight framework. This report presents main findings and recommendations.
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Financial Sector Assessment Program (FSAP) 89403 JUN 01, 2014
This report is an assessment of Korea's compliance with International Association of Insurance Supervisors' Insurance Core Principles (ICPs), as adopted in October 2011.
... See More + The review was carried out as part of the 2013 Financial Sector Assessment Program (FSAP) assessment of Korea, and was based on the regulatory framework in place, the supervisory practices employed, and other conditions as they existed in April 2013. The assessment was carried out by Craig Thorburn, Lead Insurance Specialist, Non-Bank Financial Institutions Group, Capital Markets Practice, World Bank. The assessment is based solely on the laws, regulations, and other supervisory requirements and practices that were in place at the time of assessment.
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Financial Sector Assessment Program (FSAP) 89501 MAY 01, 2014
This study intends to increase understanding of how different types of mobile money services have developed in different environments. For this purpose, two countries were selected, the Republic of Korea and Uganda.
... See More + From these study cases, some conclusions emerge. The development of mobile banking services can appear at different stages of financial sector development, but it requires a vibrant and competitive telecommunications sector. The regulatory environment does not need to be very sophisticated for the mobile industry to emerge. However, some elements appear to be important. The legal framework should allow (or at least not explicitly forbid) nonbank financial institutions to issue money and use banking agents or correspondents. To ensure wider use of the service by the population, it is important to educate the population on the benefits of mobile money services.
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Policy Research Working Paper WPS6786 FEB 01, 2014
Korea's contributions to the World Bank Group (WBG) totaled United States (U.S.) 718.7 million dollars for fiscal years 2009-14. In the first six months of fiscal year 2014, Korea contributed U.S. 34.3 million dollars to International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA) trust funds (TFs), and U.S. 10.7 million dollars to Financial Intermediary Funds (FIFs).
... See More + The number of active TFs at end of FY14 was 27, including 17 IBRD and IDA TFs, 7 FIFs, and 3 International Finance Corporation (IFC) TFs. Korea ranked 21st among development partners in terms of contributions to WBG TFs over fiscal years 2009-14. Korean contributions were received mainly from the ministry of strategy and finance, at 83 percent. This portfolio at a glance brief contains the following headings: WBG TFs receiving cash contributions; top WBG TF agreements (first two quarters of FY14); IBRD and IDA TF disbursements; and WBG TF portfolio comparisons.
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In 2003, the Korean government introduced a broad package of public financial management reforms, which succeeded in integrating performance management into the budget process.
... See More + The experience of performance budgeting reforms in Korea underscores the importance of: 1) strong support from top decision makers; 2) customization of performance budgeting system to accommodate the countrys cultural and socioeconomic characteristics; and 3) organizational restructuring and capacity building to support the new systems and processes. This brief explores performance budgeting in Korea, its features, and the success factors and policy implications.
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This economy profile presents the Doing Business indicators for Korea. In a series of annual reports, Doing Business assesses regulations affecting domestic firms in 189 economies and ranks the economies in 10 areas of business regulation, such as starting a business, resolving insolvency and trading across borders.
... See More + This year's report data cover regulations measured from June 2012 through May 2013. The report is the 11th edition of the Doing Business series.
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This regional profile presents the Doing Business indicators for economies in Asia-Pacific Economic Cooperation (APEC). It also shows the regional average, the best performance globally for each indicator and data for the following comparator regions: East Asia and the Pacific, European Union, Latin America, OECD High Income, and South Asia.
... See More + The data in this report are current as of June 1, 2013, except for the paying taxes indicators, which cover the period January to December 2012. Regional Doing Business reports capture differences in business regulations and their enforcement across countries in a single region. They provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. The report sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and employing workers. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 189 economies, from Afghanistan to Zimbabwe, over time. The data set covers 47 economies in Sub-Saharan Africa, 33 in Latin America and the Caribbean, 25 in East Asia and the Pacific, 25 in Eastern Europe and Central Asia, 20 in the Middle East and North Africa and 8 in South Asia, as well as 31 OECD high-income economies. The indicators are used to analyze economic outcomes and identify what reforms have worked, where and why.
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This regional profile presents the Doing Business indicators for economies in OECD High Income. It also shows the regional average, the best performance globally for each indicator and data for the following comparator regions: European Union, East Asia and the Pacific, Europe and Central Asia, South Asia, and Latin America.
... See More + The data in this report are current as of June 1, 2013, except for the paying taxes indicators, which cover the period January to December 2012. Regional Doing Business reports capture differences in business regulations and their enforcement across countries in a single region. They provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. The report sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and employing workers. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 189 economies, from Afghanistan to Zimbabwe, over time. The data set covers 47 economies in Sub-Saharan Africa, 33 in Latin America and the Caribbean, 25 in East Asia and the Pacific, 25 in Eastern Europe and Central Asia, 20 in the Middle East and North Africa and 8 in South Asia, as well as 31 OECD high-income economies. The indicators are used to analyze economic outcomes and identify what reforms have worked, where and why.
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The most important driver of this vision was public recognition that high levels of carbon dependent economic growth were not sustainable. This vision aimed to shift the existing development paradigm of quantity-oriented, fossil fuel-dependent growth to one of quality oriented growth, with more emphasis placed on energy independence and sustainability through such means as increasing the use of new and renewable energy resources.
... See More + From this standpoint, the green growth movement in the Republic of Korea appeared to be less an option than an essential path to achieving its vision of sustainable economic growth and the well-being of its people. The government established a legal framework on low carbon and green growth, set up a governance structure to implement green growth initiatives systematically, and established fiscal policies and budget resources to support the initiatives firmly. The purpose of this note is primarily to explain why Korea adopted a green growth strategy as a new national development paradigm and how it was implemented by the government. Section two illustrates why green growth was a necessity in Korea; section three describes how green growth was implemented by the Korean government, particularly with respect to institutional arrangements and fiscal adjustments for green growth; section four presents the key outcomes thus far; and lastly, section five identifies lessons that could be applied in other countries.
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Performance budgeting is considered one of the essential elements of public financial management reform and has been adopted in many countries.
... See More + However, it continues to present a significant challenge within the budget process. This case study draws from change management theories to tell the inside story of performance budgeting reform in the Republic of Korea, including the background of the reform, the formation of the reform team, and how the team overcame resistance among stakeholders to implement and institutionalize the performance budgeting system. Policy implications include the importance of (1) strong support from top decision makers and (2) customization of the performance budgeting system to accommodate a country's cultural and socio-economic characteristics. The Korean case also demonstrates that stable, sustainable performance budgeting reform requires capacity building of relevant stakeholders and, sometimes, significant restructuring of organizations to accommodate the new systems.
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Policy Research Working Paper WPS6353 FEB 01, 2013
A medium-term expenditure framework is considered an essential element of public financial management reform, and this framework has been adopted in many countries.
... See More + However, in terms of implementation in those countries, the medium-term expenditure framework continues to present a significant challenge within the budget process. This case study provides an inside story of medium-term expenditure framework reform in the Republic of Korea and offers some suggestive evidence about the impact of the reform. Drawing on theories of change management, the study explores how actors within the Korean government created acceptance of reform needs among relevant stakeholders, how they handled various challenges throughout the reform, how they built capacity among stakeholders, and how they institutionalized the reform measures that were consistent with stakeholder incentives. The case highlights the following implications: (1) having strong support from top decision makers is essential to successful medium-term expenditure framework reform; (2) finding ways of integrating a medium-term expenditure framework into the budget process is critical; and (3) making the framework stable and sustainable requires both capacity building of relevant stakeholders and significant organizational restructuring.
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Policy Research Working Paper WPS6342 JAN 01, 2013
The Republic of Korea vaulted in less than three generations from being one of the poorest countries in the world to becoming a member of the Organization for Economic Co-operation and Development (OECD).
... See More + This economic transformation has attracted considerable admiration and inquiry. One of the key factors for Korea's success was the provision of skills to support industrialization and economic diversification. This report takes advantage of a new World Bank diagnostic tool to examine the development of the Korean system for Workforce Development (WfD) from 1970 to 2010. The findings are intended to document good practices, lapses and key breakthroughs and generate insights that can be used to enrich dialogue on WfD policy in the World Bank's partner countries. The tool is based on an analytical framework that identifies three functional dimensions of WfD policies and institutions: strategic framework, which refers to the praxis of advocacy, partnership, and coordination in relation to the objective of aligning WfD in critical areas to priorities for national development; system oversight, which refers to the arrangements governing funding, quality assurance and learning pathways that shape the incentives and information signals affecting the choices of individuals, employers, training providers and other stakeholders; and service delivery, which refers to the diversity, organization and management of training provision, both state and non-state, that deliver results on the ground by enabling individuals to acquire market-and job-relevant skills. These three dimensions constitute a closed policy-making loop and, when taken together, allow for analysis of the functioning of a WfD system as a whole. This report focuses specifically on policies in the area of WfD.
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The 14 indicators describe a country's macro-fiscal environment to identify constraints or opportunities for health systems financing.
... See More + For each indicator two aspects are important: level and trend. A country with a 10 percent unemployment rate that has fallen from 15 percent may be in better shape than one with an 8 percent unemployment rate that has risen from 4 percent. It is also important to benchmark to group averages of countries in the same Word Bank (WB) region (EAS, ECS, LCN, MEA, NAC, SAS, or SSF) and income group (HIC, upper MIC, lower MIC, or LIC).
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